Mitigating Financial Fraud in Retail through ERP System Controls: A Comprehensive Approach with SAP Solutions

Abstract

The retail industry, characterized by high transaction volumes and complex operations, is particularly vulnerable to financial fraud. This paper explores the various types of fraud that plague the sector, including employee theft, vendor fraud, and customer fraud, and their detrimental impact on retail businesses. It proposes a comprehensive framework for leveraging Enterprise Resource Planning (ERP) system controls, with a specific focus on SAP solutions, to mitigate these risks and enhance overall financial security. By implementing robust access controls, segregation of duties, advanced analytics, and continuous monitoring, retail organizations can proactively prevent, detect, and respond to fraudulent activities, safeguarding their financial assets and ensuring compliance with regulatory requirements.