Privately held businesses aren’t required to conduct fraud risk assessments, but you should do so anyway. In general, there are four ways employees might exploit your system: Fraudulent financial reporting, misappropriation of assets, improper expenditures and illicitly obtained revenue and assets. To prevent these schemes, interview executives and managers to ensure they’re setting the right
Fraud Archives - Page 8 of 9 - Crawford Ellenbogen
Jul 31, 2019
Assess for fraud risk before you experience financial losses
- By Ellenbogen
- Fraud
- 0 Comments
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Jul 25, 2019
Cover all the bases with a background check
- By Ellenbogen
- Fraud
- 0 Comments
Background checks don’t inoculate companies against occupational fraud. After all, many thieves have never been caught. Yet these procedures remain critical to fraud prevention. Before conducting checks, obtain written authorization from the job applicant. Depending on the position, you might contact former employers, verify education and professional certifications, and review criminal, credit and driving records.
Jul 17, 2019
The greatest corporate espionage risk is internal
- By Ellenbogen
- Business, Fraud
- 0 Comments
Companies usually take steps to prevent outsiders from infiltrating their organizations and stealing trade secrets. Yet in most cases, the greater danger is internal. Employees may take sensitive information when they leave, or sell it to rivals while still employed. Stop this theft by identifying sensitive information to be protected and where it’s vulnerable. Then
Jul 11, 2019
Fraud guides may help criminals hack your data
- By Ellenbogen
- Fraud
- 0 Comments
The “dark web” has long provided refuge to criminals. Now it’s home to educational fraud guides that provide would-be hackers with detailed instructions on how to breach network security systems with technical and social engineering tools. The guides cover everything from account takeovers to phishing to counterfeit documents to stolen credit cards. An analysis of
Jul 3, 2019
Jun 27, 2019
Don’t mistake kickbacks for gifts
- By Ellenbogen
- Business, Fraud
- 0 Comments
Kickbacks return a portion of the money exchanged in a business transaction as compensation for favorable treatment. They’re illegal, but you may have trouble identifying kickbacks because they’re often disguised as gifts, travel or entertainment. The main difference is the gift-giver’s intent. Your employees shouldn’t accept gifts offered to improperly influence business decisions or that
Jun 13, 2019
Conflicts of interest: When employees aren’t on your side
- By Ellenbogen
- Business, Fraud
- 0 Comments
An employee’s undisclosed conflict of interest can be a serious breach of fiduciary duty to an employer. In fact, when conflicts of interest exist, companies often suffer financial consequences. Uncovering conflicts, particularly when employees are profiting from them, can be difficult. Instead, focus on prevention. Create and communicate a conflict of interest policy that contains
Jun 5, 2019
Fraud du jour: Social Security phone scams
- By Ellenbogen
- Fraud
- 0 Comments
Despite the National Do Not Call registry and features such as caller ID, phone fraud is thriving in the mobile phone era. Using spoofed numbers — which appear to be connected to legitimate government offices and businesses or that resemble your own number — fraud perpetrators say anything and everything to try to steal your
May 23, 2019
Antifraud checklist for construction companies
- By Ellenbogen
- Fraud
- 0 Comments
Defrauded companies lose a median $130,000. But construction companies are hit even harder, with a median loss of $227,000. What can you do to protect your construction business? Tighten your internal controls. In addition to conducting surprise audits, segregate duties — meaning that more than one person handles accounting tasks. Require employee vacations, and have
May 1, 2019
Dissecting the role of the forensic accountant in litigation
- By Ellenbogen
- Fraud
- 0 Comments
When people hear the term “forensic science,” they usually think “CSI.” What comes to mind when you hear the term “forensic accounting”? Similar to forensic scientists offering opinions about scientific matters, forensic accountants may be called on to investigate and serve as financial experts in commercial litigation. Here’s how. Who they are Forensic accountants specialize