Category Archives: Download

New COSO Guidance

coso-fraud-risk-management-guide-sept-2016-coso-acfe-cover-pageThere is new guidance just released on fraud risk management for COSO principle 8 and the full COSO framework.

[Excerpt from the ACFE Forum]

We are excited to announce the publication of the new Fraud Risk Management Guide, a resource jointly sponsored by COSO and the ACFE. This guide is an update to the previously released ACFE/IIA/AICPA publication, Managing the Business Risk of Fraud, and is designed to build on both COSO principle 8 and the full COSO Internal Control–Integrated Framework as a foundation for a comprehensive fraud risk management program.

The Executive Summary of the guide is attached to this post. We’ve also created a website ( that provides interactive tools and other resources to assist in implementing the practices put forth in the guide. We hope you find this new guide a valuable resource in assessing and improving your organizations’ fraud risk management programs.

Andi McNeal CFE, CPA
Director of Research
Association of Certified Fraud Examiners

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Filed under Compliance, Corporate Fraud, Download, Models and Templates, Occupational Fraud, Reports, Resources, Risk

Weirdest Insurance Fraud Claims of All Time

Check out these fraudulent insurance claims…


Infographic courtesy of Damien Gallagher of Top Quote in Ireland.

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Filed under Download, insurance fraud

Taxonomy of Fraud in Microfinance

Taxonomy of Fraud in Microfinance (thumbnail)Taxonomy of Fraud in Microfinance


One of the challenges we face in the antifraud industry is the lack of congruity between various thought leaders in how we define fraud and its many schemes. Each industry group or academic expert added great value to the advancement of the antifraud field. However, while every new distinction created a little more clarity, they all seemed to be inputs into a larger equation of the dynamic nature of what we face on a daily basis. In an effort to create a standardized fraud classification system that would apply across all fraud schemes, the Framework for a Taxonomy of Fraud was published by the Stanford Center on Longevity in July of 2015. It really was the first time a coding scheme was attempted that would allow for the vast universe of fraud schemes whether it be against an individual or an organization, from an insider threat such as from occupational fraud, against the public or private sector, or even industry specific fraud schemes.

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Filed under Compliance, Download, Methodology, Models and Templates, Presentations, Reports

Mortgage Fraud

The following are companion documents and images for the book entitled Mortgage Fraud and the Illegal Property Flipping Scheme: A Case Study of United States v. Quintero-Lopez.


Mortgage fraud has been described as “a form of bank robbery where the bank is not even aware it has been robbed until months or years later.” Within the United States, an estimated $14 billion (0.66% of all loans) in fraudulent loans were originated in 2009 alone. In United States v. Quintero-Lopez, 15 defendants were indicted on 70 counts in the Southern District of Florida for a mortgage fraud scheme involving 16 fraudulent loans totaling $6 million in disbursements. This case study examines over 3 ½ years of activity, incorporates a detailed risk assessment and highlights best practices for prevention, detection, and investigation. The methodology of the scheme is detailed in a process flowchart, link analysis, and timeline of events.

Mortgage Fraud and the Illegal Property Flipping Scheme

ORDER the Paperback Book


For a detailed process flowchart of the fraud scheme specific to United States v. Quintero-Lopez (2007):

Process Flowchart

DOWNLOAD Process Flowchart (PDF): 206 KB


Using Analyst’s Notebook software, the following was created for United States v. Quintero-Lopez (2007):

DOWNLOAD Link analysis (PNG image): 2.63 MB

DOWNLOAD Link analysis (PNG image): 2.63 MB

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Filed under Books, Download, Mortgage Fraud

Personalized Statistical Fraud Risk Report

The objective of the report is to provide a tool for management to adequately create a strategy to mitigate, avoid, accept, or transfer fraud risk. A detailed set of analysis is performed so as to be a roadmap for management to take action to address the risk for fraud by providing:

* Visibility into the organization’s fraud risk;

* An understanding of fraud risk by department and scheme;

* Prioritization of antifraud efforts;

* Ability to quantify impact and likelihood for COSO Enterprise Risk Management (ERM); and

* Benchmark for Key Risk Indicators (KRIs).

We do all the calculations for you!

Fraud Statistics {page 1}

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Filed under Compliance, Corporate Fraud, Download, Methodology, Models and Templates, Reports, Resources, Risk

New Benford’s Law Model

Benford's Law Model (template)

Click here to download the model.

We have developed a new model for Benford’s Law analysis.

You can analyze naturally occurring numbers (e.g. transaction level data) to see if the actual distributions conform to Benford’s Law. Under certain conditions, deviations from Benford’s could indicate the possibility of human manipulation, i.e. fraud. Therefore, those results would require additional scrutiny. This analysis provides a direction of inquiry.

This is a model for Benford’s Law analysis built in MS Excel which calculates graphical and tabular results for the following tests: Continue reading

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Filed under Download, Methodology, Models and Templates

Reputation Impact From Fraud

Reputation Impact From Fraud

Stakeholders beware.  A declining reputation can have a significant impact on an organization.  Just two and a half years after the initial public offering (IPO) of Basin Water, Inc., they were forced to issue a press release that would prove to be the beginning of the end.  The company was defunct within one year of the initial press release which indicated a potential problem involving the operational risk of financial statement fraud pertaining to revenue recognition.  This is merely one example where 72% of Securities and Exchange Commission (SEC) investigations in fiscal year 2010 identified deficiencies with 42% resulting in “significant findings”.   When those issues are highlighted with restatements of earnings, companies loose market capitalization and shareholders’ investment equity declines.  Researchers have found that when financial statement fraud was involved, for the three-day period surrounding the restatement date, firms lost an average of 13% of their market capitalization with an average loss in US dollars of $210 million.

Download the entire article: Operational Risk & Reputation Impact, A Case Study on Basin Water, Inc. (PDF, 8 pages)

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Filed under Download, Financial Statement Fraud, Reputation

ACFE Report to the Nations 2012 Global Fraud Survey

ACFE Report to the Nations 2012 Global Fraud Survey

Report to the Nations 2012 Global Fraud Survey

Issued Tuesday, May 8, 2012

Summary of Findings

• Survey participants estimated that the typical organization loses 5% of its revenues to fraud each year. Applied to the 2011 Gross World Product, this figure translates to a potential projected annual fraud loss of more than $3.5 trillion Continue reading

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Filed under Corporate Fraud, Download, Occupational Fraud, Reports

Just how many fraud schemes are there?

Just how many fraud schemes are there?

You may be suOccupational Fraud Schemesrprised.  Here is a map of just occupational fraud schemes; where a person uses their job to facilitate the fraud.  They are the most common schemes found in corporate fraud.  However, depending on the industry, there are a host of industry-specific schemes that could be incorporated into each of these.  Each fraud scheme is different with varying methodologies, positions of trust, and motives.  Sometimes one fraud scheme is used by one fraudster and other times multiple schemes are used by many people.

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Filed under Corporate Fraud, Download, Fraud Schemes, Occupational Fraud