The mining industry is essential to the global economy as it provides vital raw materials to many sectors. However, it faces unique challenges in preventing fraud and maintaining internal controls due to its complex operations and supply chains:
- The mining industry faces significant fraud challenges, with a median loss of $912,500, as per the 2022 ACFE report.
- Common fraud types in mining include asset misappropriation (49%), corruption (23%), and fraudulent billing (13%).
- Ernst & Young's 2023 study found that 71% of mining companies have material weaknesses in internal controls.
- Key weaknesses include revenue recognition (35%), financial reporting (29%), and inventory management (22%).
This report will also explore how the rise in Artificial Intelligence technology and Risk Mining provides a robust means to address these industry challenges.