Getting away with fraud is no easy feat. Perpetrators must go to great lengths to hide their illicit activities. And yet they manage to pull it off all too often. So is there a fraud deterrence measure you can adopt to thwart them without spending a small fortune? There most definitely is. Simply let them… Read more »
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Posts Categorized: Blog Articles
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 »
Tip Hotlines Enhance Fraud Deterrence
Performing a formal financial audit annually is thought by many to be the most effective means of fraud detection and fraud deterrence. It’s not. Only three percent of all fraud is detected by a formal financial audit. In fact, more than twice as many are discovered by accident than by formal audit. So what is… Read more »
Fraud Investigation Identifies Three Types of Fraud
Fraud investigations worldwide reveal that asset misappropriation, corruption and financial statement fraud are the three main types of fraud, according to the Association of Certified Fraud Examiners (ACFE). The ACFE identified these three key types of fraud in its 2014 Report to the Nations, the results of a global survey conducted biennially to study the… Read more »
Why You Can’t Afford Not to Invest in Fraud Deterrence
Think a fraud deterrence program is too pricey? Consider this. In its biennial global survey, the Association of Certified Fraud Examiners (ACFE) found that the typical organization loses five percent of its revenues to fraudulent activities each year. That conclusion was a key finding in the ACFE’s 2014 Report to the Nations, the results of… Read more »
Understanding “The Fraud Triangle” Can Aid in Fraud Deterrence
Fraud deterrence is undoubtedly a complex issue. But there is one seemingly simple approach that can help you keep fraud out of your business or organization: Understanding “The Fraud Triangle” and using it to your advantage. “‘The Fraud Triangle’ is what forensic accountants talk about when they refer to the three elements that are necessary… Read more »
