Cognizant of the rampant escalation of fraud in the business world, the owner of a mid-sized retail establishment took great care in establishing fraud deterrence measures to protect the company. With more than 80 percent of the company’s sales paid in cash, multiple checks and balances were put into place to make sure each day’s… Read more »
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Posts Categorized: Fraud Deterrence
Fraud Deterrence on Foreign Soil
Your company has decided to open a factory overseas, or to begin selling their products in a foreign country. Do you understand the laws that will affect how your company operates outside the boundaries of the United States? Which payments to foreign government officials are allowed and which are considered fraudulent? A forensic accounting expert… Read more »
Fraud Tales: Fraud Investigation Reveals Loopholes in Checkbook Controls
Harry Johnson was a savvy businessman who was well aware of the perils of not having the proper fraud deterrence measures in place. He took great care to see that his successful small business was adequately protected by anti-fraud controls that he created himself. Then how did Harry end up losing more than $200,000 from… Read more »
Secure Passwords Key to Fraud Deterrence
We hear about it all too often — another data breach at another major bank or retailer. It’s gotten so bad that Americans say they are more worried about identity theft than terrorism. There’s not much you can do to thwart hackers trying to steal data from your bank or favorite store. But you can… Read more »
Fraud Investigation Uncovers Casper, The Unfriendly Ghost Employee
Casper Richardson was the perfect employee. He was never sick, opted out of company medical insurance, often worked overtime, received glowing reviews from his supervisor, and always cashed his paycheck on payday. Casper’s one fault? He didn’t actually exist. Casper was a ghost employee that a subsequent fraud investigation revealed had cost the company a… Read more »
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 »
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 »
Keeping an Eye on Fraud Deterrence
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 »
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 »
