Fraud Schemes – Page 3

FraudCast – Cloud Computing

August 25, 2015September 12, 2016Fraud Doctor

The other day I was at a client site assisting them with building their global antifraud program. While there, I realized they did not have a process for back-up related to employees who travelled. They had a robust system-level process for backing up desktops and laptops while they were actively connected to their network. However, there was no process in place (manual or otherwise) to back-up the data on employee’s laptops when they were travelling and thus not connected to the organization’s network. Many of the thousands of people who travelled would be in the field (yes, sometimes an actual field near a tiny village in the jungle) for weeks… Read More

Cell Phone Forensics

August 3, 2015August 3, 2015Fraud Doctor

Your company can benefit from the new technology advances in cell phone forensics. Watch this short video for just a few of the ways cell phone forensics can help you with your fraud management program.

Mortgage Fraud

February 3, 2015Fraud Doctor

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. ABSTRACT 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… Read More

Personalized Statistical Fraud Risk Report

January 18, 2015September 17, 2015Fraud Doctor

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).

Social Engineering (CBT)

December 20, 2014Fraud Doctor

Social engineers get useful information from unsuspecting people and use it in potentially nefarious ways. Simple conversations provide the opportunity for the social engineer to get seemingly benign information from individuals over the course of one or many encounters. That information can then be combined with other open source information to then provide the social engineer with everything they need to carry out an attack on a system, enter a secure building, or any number of applications that could cause harm to your organization. Protect your employees by educating them about the direct implications this can have on your company. Teach them what to look for so they can avoid… Read More

Step Up

November 6, 2013November 28, 2013Fraud Doctor

Many years ago, I was in a meeting that had a surprising outcome. The effect has stayed with me all these years. In my company at the time, we had the luxury of attending one of the first meetings held in our brand new office building. It was beautiful. The design took full advantage of natural lighting, open spaces, and everyone loved the neutral color scheme. You could still smell the wet paint in the air as we found our way to our seats. On this particular day, the CEO was leading a discussion and we were thrilled just to have the privilege of hearing him speak. He was a… Read More

ACFE Endorses My Fraud Books

June 21, 2013June 21, 2013Fraud Doctor

Both of my books on fraud are now available at the Association of Certified Fraud Examiners (ACFE.com) website in the bookstore. ACFE membership discounts available.

Reputation Impact From Fraud

May 19, 2012May 19, 2012Fraud Doctor

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… Read More

ACFE Report to the Nations 2012 Global Fraud Survey

May 9, 2012Fraud Doctor

ACFE 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

Shipping Costs and Inventory Fraud

May 2, 2012May 2, 2012Fraud Doctor

Shipping Costs and Inventory Fraud Are you at risk for inventory fraud? A simple evaluation of shipping costs relative to sales over time could indicate a greater risk for inventory fraud (Bell, 2009). SHIPPING COSTS % Definition: Shipping costs expense divided by total sales: (Shipping Costs Expense) / (Total Sales) Measurement Unit: % Measures: The relationship between shipping costs and sales. Fraud Indicator: An increase is a red flag for early delivery and bill & hold schemes. A decrease could indicate fictitious revenue. Fraud Red Flag: Increase : Revenue recognition: Early delivery scheme Increase : Revenue recognition: Bill & hold scheme Decrease : Revenue recognition: Fictitious revenue References Bell, A. … Read More