Blog

Posts Categorized: Fraud

Fraud Tales: Fraud Investigation Reveals Fraud Scheme in Supplies Shipping

The Director of Operations at a large national financial services firm was very good at his job.  Asked to cut costs, the Director recommended the company centralize its purchase of office supplies, a move he said would save the company more than $50,000 a year.  Sure enough, during the first three years of the program,… Read more »

Fraud Tales: Fraud Investigation Finds Stolen Cash in Business

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 »

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 »

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 »

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 »