There are several reasons why data entered into the system at an organization might be inaccurate. It might have been entered wrongly by mistake or it could have been entered incorrectly, deliberately. It could also be due to an error in the system. Whatever be the reason, the sources of such mistakes must be probed in order to rectify mistakes before they lead to catastrophes.
Listed below are some sources of inaccurate data.
In an extensive data entry process where hundreds of words and thousands of numbers are being entered every day, it is impossible to maintain absolute accuracy. Even though quality checks may be in place and the content is always reviewed and re-reviewed, it is still possible to encounter typographic mistakes and incorrect information incorporated due to a lack of concentration. An extra number here and a wrong word there could lead to serious consequences.
The data entry process itself, in many companies, might be flawed. For instance, paper documents that are given to operators might be filled incorrectly.
These are a major cause for concern. Data in securities firms, brokerages, banks, and financial services companies are known to be error-prone because the data did not get transmitted accurately from one system to the other.
There are cases where incorrect data is entered deliberately in order to harm the business. There may be dishonest workers in every firm and they often look at finding transactions that could be used to their advantage. Providing employers with incorrect data is one of the ways in which corrupt workers try to take advantage of benefits that belong to others. Credit card frauds and loan scams are frequently the results of data manipulation.
Several departments, including finance and marketing, thrive on information and if the information is inaccurate, then their business might not survive in the long run. Regular reconciliation, frequent employee training, timely updating of systems, and outsourcing of activities to data entry specialists, are some ways in which inaccurate data can be minimized.