Preventing Global Fraud
By Jared Nielsen, Marketing —
Fraud is everywhere. It roughly costs the global economy $11 billion annually, with a very small percentage of those losses ever being recouped, and the news offers little in reassurance that this problem will ever change. With scandals surfacing every day, it makes you wonder whether fraud will ever be a thing of the past. One investment company decided it’s fed up.
In order to combat the ever-increasing fraud dilemma, Zhou Limited, Saint Juste’s investment company, is now offering pre-fraud polygraph testing. The company seeks to screen money managers during the employment process before they have a chance to commit financial scams. Instead of trying to track down criminals and conduct lengthy prosecution processes, Zhou Limited is simply preventing fraud from ever happening.
The goal is to have trustworthy managers and bankers from the start. Before you ever hand over money to a hedge fund manager or investment banker, Zhou Limited will put these employees through a polygraph test to determine if they have ever been involved in shady business deals. Many companies now believe that if such technology had been implemented a decade ago, the global economy would not be in the state it is now in terms of fraud debt.
Only High-Profile Money is Kept Safe?
Unfortunately, polygraph examinations can be an arduous process requiring a lot of time and a costly examiner. Due to the nature of polygraph tests, the number of tests administered will most likely be limited. Those tested will be high-profile money managers, not everyday managers. And everyday investors might not have access to such protection since their assets might not even amount to much more than the cost of the polygraph test itself. They still stand to lose whatever they do have just like the high-profile investor. So what about the rest of the possibilities of fraud?
There is a gap between the need for lie detection services and its accessibility. The process of lie detection has a lot of value—both for the economy and for the private investor. However, due to the its required expertise and time-consuming nature, the polygraph is not the ideal product to perform these tests. A technology such as EyeDetect® is quicker and simpler which allows for widespread use. With only 30-minute long tests and little formal training needed, these tests would not need to be limited to only a wealthy few. Instead, this same level of protection could be used for anyone who felt there was reason to be concerned about the way their money is being managed. Not just wealthy people lose money. This is an issue that affects all of us. We need a solution for everyone.
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