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Pay for Fraud Deterrence Now — or Fraud Losses Later

Remember the old auto oil filter company commercial with the tag line “Pay me now or pay me later?”  The advertising message being sent was that the small upfront cost to replace your car’s oil filter now could prevent more costly repairs in the future.  The same can be said about fraud deterrence programs —… Read more »

Understanding Business Valuation, Part III

Determining the worth of your business can be a complex matter.  Before the actual business valuation can truly get underway, there are a multitude of steps that must be taken to set the groundwork. In previous postings, David Anderson, principal of David Anderson & Associates, a Philadelphia forensic accounting firm that provides a full range… Read more »

Fraud Deterrence Can Ferret Out Phony Vendors

One of the most frequent schemes deceptive employees use to steal money in the workplace is the creation of phony vendors who are paid for services never rendered or goods never delivered.  There are, however, fraud deterrence steps organizations can take to help ferret out these fictional vendors. “It really is a popular tactic among… Read more »

Understanding Business Valuation, Part II

Understanding how to achieve a fair and accurate business valuation is something every business owner — at some point — needs to know. “You don’t want to rely on estimates, gut instinct or rumored calculation methods to determine business value,” said David Anderson, principal of David Anderson & Associates, a Philadelphia forensic accounting firm that… Read more »

Understanding Business Valuation, Part I

Do you know the value of your business?  There are myriad reasons why you might need to know — from mergers and acquisitions to estate issues or marital dissolution.  When the time comes, understanding how a fair and accurate business valuation is determined is of paramount importance. “The first step in valuing a business is… Read more »

Prosecution: The Ultimate Step in Fraud Deterrence

So you’ve been the victim of fraud.  You knew something was amiss.  You hired a Certified Fraud Examiner.  A thorough fraud investigation uncovered the fraud and identified the perpetrator.  You fired the fraudster — or punished them internally — and implemented stronger anti-fraud controls as part of your overall fraud deterrence program.  So it’s over,… Read more »

Understanding Employees Key to Fraud Deterrence

Do you know your employees?  Do you understand how they function on the job or the scope of their interpersonal relationships at work?  Do you know what personal challenges or difficulties they face at home?  If not, perhaps it’s time to learn.  Understanding your employees is a key component to an effective fraud deterrence program…. Read more »

Fraud Investigations Pinpoint Characteristics of Fraudsters

The perpetrators of fraud come in all shapes and sizes, demographically speaking.  But fraud investigations throughout the years have been able to pinpoint the more typical characteristics of a fraudster, and some of the results are surprising. “Understanding the traits of the average fraudsters isn’t going to allow you to look at your employees and… Read more »

The Best Anti-Fraud Controls in Fraud Deterrence Programs

The single most common anti-fraud control companies use as a fraud deterrence vehicle is the formal financial audit.  Unfortunately, it’s not a very effective one. In its 2014 Report to the Nations, the Association of Certified Fraud Examiners (ACFE) reported that out of 18 identified anti-fraud controls, the formal financial audit scored 16th in reducing… Read more »

Take a Vacation for Successful Fraud Deterrence

Fraud deterrence programs never take a vacation, but your employees most definitely should. Requiring employees to take regular vacations is a key anti-fraud control in an organization’s comprehensive fraud deterrence program.  In its 2014 Report to the Nations, the Association of Certified Fraud Examiners (ACFE) notes that a mandatory vacation policy reduces an organization’s median… Read more »

Eliminating Opportunity Is Crucial to Fraud Deterrence

Opportunity — the ability for fraudsters to carry out the misappropriation of cash or other company assets — is one of the three key elements necessary for fraud to occur and it is an element that organizations often can eliminate by enacting strong anti-fraud controls as part of a comprehensive fraud deterrence program. In its… Read more »

Fraud Investigation Reveals Fraud Schemes

Fraud investigations into asset misappropriation — one of the three main types of fraud — reveal an assortment of deceitful means by which dishonest employees can steal from an organization. “There is no shortage of schemes by which a fraudster can misappropriate funds from an employer, whether it is a company, a non-profit or a… Read more »