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Posts Categorized: Fraud

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 »

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 »

Fraud Investigations Reveal Trusted Employees Often at Fault

It’s in the headlines nearly every day — stories about fraud investigations that reveal the theft of hundreds of thousands and even millions of dollars from local businesses, government agencies and charitable organizations. And who’s to blame? Too often the culprit is a long-time trusted employee. “The person responsible for defrauding the company frequently is… Read more »

Are Your Clients at Risk Under the Foreign Corrupt Practices Act or the U.K. Bribery Act?

If any of your clients conduct or plan to conduct business in any foreign country, then you should read this blog. The U.S. Foreign Corrupt Practices Act of 1977 (FCPA) makes it a crime for a business or any of its officers, directors, employees, agents or shareholders to bribe a foreign official, foreign political party… 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 »

Understanding Your Business’ Financial Statements Is the First Step Toward Preventing Fraud

Many of my recent forensic and litigation engagements have arisen when business owners (including legal and other professional firms) suddenly learned that trusted individuals within their businesses had perpetrated a fraud upon the business. Most of these business owners had received regular monthly or quarterly financial statements for the business but had failed to read… Read more »