The Function of Information Systems in Identifying Fraud in Retail Businesses

The aim of this paper is to emphasise the pivotal role that information systems, of various kinds, play in both identifying fraud committed against the medium to larger retail concern and in investigating who has been responsible. Reliable statistics on retail fraud are difficult to come by, but the paper summarises some of the information available from Government, police and retail sources and the arguments for exercising rigorous control. It then goes on to examine some of the prerequisites if information systems are to combat fraud effectively. Attention is focused on the sales audit, stock audit and security functions, and examples of applications in each of these fields are provided.