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 »
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Posts Categorized: Fraud Deterrence
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 »
Financial Statements Can Be Invaluable in Fraud Deterrence
Financial statements issued by companies, government entities or organizations can be invaluable tools in fraud deterrence. But too often, the people in charge don’t bother to read these statements on a regular basis, and those who do often don’t understand what they are reading. Understanding your financial statements, and knowing what to look for, are… Read more »
Fraud Deterrence Starts with You
As a reasonable and intelligent business owner who employs reasonable and intelligent employees, you might think fraud deterrence programs are unnecessary. It’s a given that everyone knows they’re not supposed to steal from their employer, right? And they also understand that as the boss, you get certain perks to which they are not entitled. It’s… Read more »
Creating an Effective FCPA/UKBA Compliance Program
Last month I discussed the potential risks that a company faces under the U.S. Foreign Corrupt Practices Act of 1977 (FCPA) and the U.K. Bribery Act of 2010 (UKBA) when conducting business in foreign countries. This month, I’ll present the key components of an effective FCPA/UKBA compliance program. There are seven key components to an… Read more »
Protecting Your Auto Dealership From Fraud
Owning and operating an auto dealership can be a rewarding experience. Despite the long hours and myriad of issues facing the dealer, a well-run dealership can be a source of satisfaction and financial reward. However, the complexity of auto dealership operations can give employees and others the opportunity to commit fraud, thereby diverting significant profits… Read more »
Executive Culture is Essential in Preventing Employee Fraud
I was recently involved in a fraud investigation of the CFO of a privately held company that spent years following the directives of the majority shareholder to run the majority shareholder’s personal and/or nonexistent expenses through the company. In addition, the CFO was directed to implement other schemes that the majority shareholder designed to defraud… Read more »
