Customers become very skeptical of doing business or continuing their business relationships with such organizations where fraud is perpetrated. It adds to all the cost of fraud which eats away into the bottom line profits.
Fraud risk can never be mitigated 100% and fraudsters will always find a way out of the best laid internal control systems. Collusion between two or more employees / suppliers / clients can make fraud go undetected.
The only thing that management can do is to establish mechanisms to detect and deter fraud. More than 40% of all frauds come to light through whistle-blowing. It has been proven that early detection results in lower losses. Providing employees, customers and suppliers means to report any ethical concern securely and confidentially would not only detect frauds but also act as a deterrence.