Fraud Examiner Archives

The King of Ponzi Schemes

Self-Described 'Fraud Consultant' Charged With Another Embezzlement

Lessons from Minkow: Why Background Checks are Well Worth the Hassle

Digital Currency: Money-Laundering Bogeyman or Real Concern?

Recently, there has been some rustling from lawmakers and others that indicates a serious money laundering threat might be upon us: decentralized digital currencies.

Data Analytics: The Unsung Anti-Fraud Power Tool

Data analytics -- the practice of assessing bodies of business data to identify potential indicators of fraud -- is slowly, but surely, becoming a mainstay of the fraud fighter’s professional repertoire.

CFE Follows "Indicators of Trouble" to Find Fraud

CFE Sees Software, Technology Advancing the Fight Against Fraud

Member profile

Can Whistleblowers Seeking Big-Dollar Rewards from the SEC Be Kept Inside?

Fraud Examiner Provides Insight into Life as a Small Business Owner

Regulators Seek to Reduce Unemployment Insurance Fraud

Help Wanted: Fraudsters in Need of Your Dollars

From the Classroom to the Auditor's Desk

Creating Opportunities: Becoming a CFE Has Opened Doors for Foster

'Tis the Season - For Fraud

"Occupy Wall Street:" A Protest Against Fraud?

Does UBS Have Controls Worth Banking On?

The Fraud Curve: White-Collar Crime in Higher Education

Using Technology to Detect and Deter ACH and Wire Transfer Fraud

Lessons from a Former Goldman Sachs Executive

Greg Smith, the former Goldman Sachs (GS) executive who hammered his former employer in The New York Times in mid-March, inadvertently did a great service to senior management everywhere.

Enforcement, Education, Collaboration: Fighting Immigrant Services Fraud

Immigrant communities have proven to be particularly vulnerable to fraud due to the cultural and language barriers faced by their populations. Within the past few years, the U.S. government has recognized a surge in immigration services scams.

An Introduction to Data Analytics

This ACFE exclusive video features an interview with Vincent Walden, CFE, CPA, as he explains text mining and other concepts in data analytics.

Helping to Shape the Future of the ACFE

The ACFE Advisory Council is a council of fraud-fighting experts dedicated to the improvement and growth of the ACFE.

Focus on Finding Assets

The circumstances surrounding the dramatic downfall of Peregrine Financial Group (Peregrine)—one of the largest independent U.S. futures brokerage firms—and its sole owner and chief executive, Russell Wasendorf, illustrates the important role of asset tracing and recovery in fraud cases.

Fraud Committed Against Father's Business Made Impression on CFE

Denise McClure, CFE, CPA, is president of Averti Fraud Solutions, a forensic accounting firm that "follows the money” in criminal and civil matters, while also helping organizations improve internal controls. McClure remembers when her father, "an honorable, trusting small business owner, was victimized by morally flexible employees.

Finding and Addressing HIPAA Violations: Stopping Those Little Lapses That Can Cost an Institution So Much

Health privacy violations are lethal. They can create reputation management nightmares and generate stiff fines. Even a single HIPAA violation has serious financial consequences.

Who Says You Can’t Buy Credibility?

Unfortunately, customer reviews might not be as reliable as once thought. There is mounting evidence that a substantial portion of customer reviews are not real, and instead are created by someone with an undisclosed relationship to the seller or the product.

Auditing U.S. Companies in China: Symptomatic of Bigger Accounting Fraud Problems?

The Security and Exchange Commission’s (SEC) Dec. 3, 2012 lawsuit against the Big Four accounting firms and BDO (a “second-tier” firm) got a few brief headlines, but not the kind of attention that should have been attracted by a move that could result in serious penalties for the defendant firms.

Fighting Fraud in Iceland

Using CFE Expertise in the Courtroom

Peter Davis serves as managing director at Simon Consulting, where his projects include receiverships over Ponzi schemes, alter ego analyses, fraud investigations, lost profit and earnings calculations, lost asset searches and other matters.

Social Media Sites: The Fraud Investigator’s New Best Friend... But “Friending” Can be Risky

“Mining social media for clues is one of the fastest-growing areas of insurance-fraud investigation. (For example), workers compensation investigators might find that a supposedly injured employee is bragging about hang gliding and is posting action photos on Facebook.” -- James Quiggle, Coalition Against Insurance Fraud.

Social Security Number Randomization

As of June 2011, the Social Security Administration now administers Social Security numbers randomly. Prior to this change, Social Security numbers were based, at least partially, on the geographical location of the recipient.

Food Stamp Fraud Gets High-Tech

The Supplemental Nutrition Assistance Program, or SNAP, began as the Food Stamp Program (FSP) in 1939, and was set up to aid hungry low-income Americans during the Great Depression. In 1964, FSP got a makeover and adopted a way to get much-needed food to these Americans, a mechanism that became more commonly known as “food stamps.”

Looking Ahead: Are We Focusing on the Right Fraud Issues for 2012?

In the last month or so, several reports and surveys have been released with predictions about the “fraud outlook” for 2012.

3 Steps to Simplify Audits, Demonstrate Compliance and Manage Risk Across the Enterprise

Important New Insights into The Cost of Cyber Crime

As more and more fraud migrates from traditional techniques to those exploiting the Internet, institutions and individuals are increasingly at risk of victimization.

To the Victor Go the Spoils: Fraud and the Olympic Games

As the world gears up for another exciting celebration of athletic prowess, the criminal underworld is preparing to take advantage of our collective jubilation and the anticipation of the Games.

Monitoring Authorized User Activities: The Importance of a Sound Forensic Audit Trail

According to a recent study on Insider Threat conducted by the Ponemon Institute, organizations suffer an average of more than 52 incidents of insider fraud annually. Traditional security controls, such as application logging, are often powerless in these situations.

The JPMorgan Chase $2 Billion Blunder: Fraud or No Fraud?

Was fraud somehow involved in the massive headline-making trading loss at JP Morgan Chase?

Fraud Considerations for Telecommuting Programs

Telecommuting programs present obvious questions for both salaried and hourly workers: are the employees actually working when they claim they are, and are they as productive as they would be in the office environment?

Internal Controls: Putting Them in Place Is Only Half the Battle

According to Connecticut-based forensic accountant and investigator Stephen Pedneault, CPA, CFE, many internal control designers and fraud experts over-think potential fraud scenarios during their risk assessments.

CFE Banks on Anti-Fraud Training to Stay Ahead of the Curve

Sarah Vandersnick, CIA is an internal auditor for Think Mutual Bank in Rochester, Minn.

Managing Risks in Vendor Relationships

Organizational management increasingly needs to understand and mitigate its risks effectively to ensure long-term success. Effective risk management requires, among other things, a comprehensive and ongoing set of tools and processes to handle the dangers associated with third-party relationships.

Using Cash Control to Prevent and Detect Fraud

In all business entities, cash is a high-risk asset and vulnerable to fraud. Having controls in place and ensuring employees their compliancey with them is of top priority.

Friend or Fraudster? How Scams Are Plugged Through Social Media

Many social media users are connected to people they have never met or barely know, and now these so-called friends and connections not only have access to your personal information, but they also have the ability to send you personalized and private messages.

Enron, WorldCom Sparked Auditor’s Interest in Fraud

Major accounting frauds – and the new rules that followed -- set Patrick Brogan, CFE, CPA, CIA, down the path to becoming a Certified Fraud Examiner. Brogan is president of PBC Global, a firm that specializes in internal audit, compliance, accounting and reporting specialists.

Corporate Conduct: Guidance From Afar

Long before Senator Paul Sarbanes and Representative Michael Oxley took it upon themselves to craft a federal law designed to thwart mega-accounting frauds like those at Enron, Tyco and WorldCom, a respected, retired Judge in South Africa named Mervyn King was hard at work fashioning a set of standards aimed at enhancing corporate board, audit committee and internal audit influence over governance and risk mitigation... including fraud risk.

Holiday Fraud — Retailer, Buyer and Donor Beware

With the holiday season on the horizon, fraudsters worldwide are clamoring for the opportunity to take advantage of unsuspecting merchants, consumers and donors.

Catching a Snake in the Grass

Why an impulse reaction is rarely the best strategy

Nonprofit Governance: Why Donate to a Fraudster?

The Sarbanes-Oxley Act (SOX) of 2002 imposed many new corporate governance provisions for public companies.

From Motivated Student to Professional Fraud Fighter

It was during her college undergraduate study that Ashley M. VanDenTop, CFE, became interested in fraud.

Taking the Law Into Your Own Hands — Legally

Folks in the fraud-fighting business rightfully complain about the large number of fraudsters who are: Never prosecuted; given a “slap on the wrist” by the criminal justice system; allowed to walk around freely until they’re brought to justice.

Online Pharmacies: Convenience, Privacy... and Fraud

The rising popularity of online pharmacies in today’s economy provides a new channel that is vulnerable to fraud. Pharmacies operating through the Internet offer convenience, low prices, and privacy.

Learning Through Experience

There is no substitute for hands-on experience in fraud examination. This reality has helped guide David Wilson, CFE, in his career and is also a key piece of advice he imparts on others looking to enter the profession.

The Common Male Fraudster: Spotting Demographic Trends

A recent report in the academic journal mBio concluded that fraud in the scientific community is significantly more likely to be perpetrated by men than women.

Solving Cases, One Puzzle at a Time

Heather S. Rogers, CPA, juggles many roles: She is an associate professor of accounting and chair of the economics and business department at Whitworth University, as well as head of her own private CPA practice.

Are We Looking Where The Fraud Is?

It is a question frequently asked by management, boards of directors and audit committees, but the response given may not necessarily be the same in each organization. Are we looking where the fraud is?

Bringing CFE Expertise to Afghanistan

David Crump, CFE, CFI, is currently working in Afghanistan for Engility Corp. as a law enforcement professional assigned to a U.S. Army battalion. His job is to advise, mentor and train U.S. soldiers and leaders in law enforcement, evidence handling and collection and rule of law.

SAC Capital Group Faces Insider Trading Charges

Leadership at SAC Capital Group (SAC) is accused of creating a culture that encouraged the use of non-public, material information in the pursuit of high returns. And those returns have indeed been high — nearly 30 percent over the last 20 years, some of the best in the hedge fund industry.

The SEC’s Newest Tool is Headed to the Front

In the ongoing battle against financial reporting fraud, the Securities and Exchange Commission (SEC) is employing technology in a way that is making waves in Wall Street circles – enough so that, according to a recent Forbes article, a key tool in the SEC’s approach has been given a nickname: RoboCop.

Data Breach Highlights People’s Predilection for Weak Passwords

The recent news that the passwords and login credentials for approximately two million online accounts were stolen and posted online serves as a reminder of the importance of password security. The stolen credentials were for all kinds of user accounts, including those on Facebook, Google, Linkedin, Twitter, Yahoo and ADP payroll services.

Mining Your Travel and Credit Card Data for Fraud, Waste and Abuse

In our September edition, The Fraud Examiner presented “Are Your Travel Expenses Monitored?” by Misty Norris-Carter, CFE, CIA. In response to that article, our guest writer submits his experiences at Mayo Clinic regarding the implementation of data mining processes to monitor travel.

From New Scotland Yard to the Private Sector, CFE Tracks Fraudsters

Simon Markham, CFE, is a fraud investigator for UK-based mobile phone operator EE, Ltd. in Duxford, Cambridgeshire.

Where Has All the Goodwill Gone?

It must be year-end house-cleaning time, because we read every day about companies writing off huge amounts of goodwill that originated from an earlier acquisition.

For Better or for Worse

The institution of marriage has long been a sacred ritual between two people in love; however, even this sacred institution is vulnerable to fraud.

Cash Me if You Can

Lawsuits and divorces have a strange effect on people. When faced with a big financial loss, otherwise honest and trustworthy people will begin to hide assets and lie about their cash.

The Evolving Threat of DDoS Attacks

What CFEs and their organizations should know about zombie armies and robot networks.

Storing Data in the Shadows and the Cloud

In the rush to embrace developing technologies, organizations and their employees often unwittingly increase the risks of data loss. The convergence of cloud computing and powerful employee mobile devices means the goals of securing sensitive data and maintaining regulatory compliance are becoming more difficult.

Lessons from the ACFE Global Fraud Conference: Newest Prevention and Detection Methods

Being a successful fraud fighter means staying on the cutting edge of the newest techniques and emerging best practices in prevention and detection. At the 24th Annual ACFE Global Fraud Conference, expert presenters brought timely fraud issues to the fore and explored ways in which fraud examiners can best be equipped to deal with them.

Advice From a CFE: Find a Mentor, Stay Educated

Born and raised in Singapore, Ng Siew Kwan, CFE, CIA, came to the United States for an education in finance, beginning a path that would lead him to a career in fraud examination.

Internal Auditor, World Traveler

“Anyone in our field or a related occupation knows how difficult it is to get information needed to make assessments or improvements,” said Seham S. Carson, Manager of Internal Controls & Accounting Policies at Bristow Group Inc., in Houston, Texas.

The “Lost Deposit Bag” and Other Frauds in Schools, Government Organizations

Dennis Dycus, CFE, CPA, CGFM, is director of the Division of Municipal Audit for the State of Tennessee Office of the Comptroller of the Treasury. In a recent Q&A with the ACFE, he provides his insight on fraud investigation from the government agency perspective.

Price is Right Appearance Exposes Workers’ Compensation Fraud

While media and public attention has been focused on disaster-related frauds, data protection and privacy, and tax avoidance, a recent workers’ compensation scandal involving a contestant on the U.S. game show The Price is Right serves as a reminder that insurance fraud schemes continue to pose significant threats to public and private interests.

Behind ‘Tears and Hugs,’ a Staggering Fraud

Mandy was a superstar. For my client, a nearly century-old private school, she was much more than the bookkeeper.

Is Your Refund at Risk?

The clock is ticking to file 2012 income tax returns in the U.S., and if you haven’t filed yours yet, you might not want to wait around too much longer. Filers have bigger things to worry about than whether they’ve maximized their refund; specifically, the threat of someone stealing their identity and filing their tax return before they do.

CFE is One of America’s Premier Lawyers

Jeffrey W. Brend, J.D., CFE, is a forensic divorce attorney who has been featured in Fortune magazine, Newsweek, and on the Sky Radio Network as one of America’s Premier Lawyers.

How Fraud Investigation Just Got Harder in China

Over the past 15 years I have witnessed the gradual emergence of an investigation industry in China which began from crude anti-counterfeit outfits and family investigation agencies and gradually extended to the more sophisticated areas of due diligence, fraud investigation and forensics, as well as compliance and FCPA investigations.

User Data for Investigations: Who Is Sharing?

Fraud examiners, whether working in law enforcement or the private sector, know that their investigations can benefit from the vast amount of data stored by Internet service providers (ISPs). User-created content such as photographs, messages, and personal status updates help examiners discover motives, incriminating statements, conflicts of interest, and much more.

Fighting Fraud from Miami to Vancouver

As the vice president and head of anti-fraud and corporate governance, Guiseppe Tritto knows how wide fraud investigations can span. From Miami to Vancouver, Tritto supervises and monitors all corporate and investment banking anti-fraud efforts in North America for BNP Paribas.

An Investigator’s Advice: Keep an Open Mind

Jill Battley, CFE, serves as divisional director for Haymarket Risk Management, where she investigates fraud and implements measures to detect and prevent it.

Tracking the Intangible: How Fraud Examiners Are Busting Bitcoin Fraud

Due to its skyrocketing value over the past year (from around $10 per bitcoin in November 2012 to over $300 per a year later), Bitcoin has been gaining popularity beyond just the tech community.

Cyber Fraud: The Worsening Threat

What some might find surprising, though, is the level to which cyber fraud/cyber crime continues to flourish today, roughly 20 years after the beginning of the Internet revolution. In fact, if many experts are correct, it is actually increasing considerably.

Hiding in Plain Sight

Uncovering fraud requires a highly honed set of skills that combines both the art of knowing how to find patterns and using technology to do the heavy lifting. Consider your own credit card bills.

Your Dog is the Worst Dog. Ever.

Do you think that your dedication to finding fraud could ever interfere with your ability to properly conduct a fraud investigation?

In the News: Disability Fraud — Alive and Well

Disability fraud costs companies billions of dollars per year and, as seen recently in U.S. headlines, can be as far reaching as the judiciary.

Worldly CFE Applies Skills in Gaming Industry

As a world traveler, Catherine Samaras, CFE, CA, CIA, has seen quite a lot. While every new destination provides a learning experience, so do many of the things she has witnessed in the business realm.

From 1988 to Present: The ACFE Looks Back at 25 Years

In 1985, a casual conversation between accountant-turned-FBI agent Dr. Joseph T. Wells, CFE, CPA, and Dr. Donald Cressey, the foremost criminologist in the country, planted the seed for what would become the world’s largest anti-fraud organization.

Are Your Travel Expenses Monitored?

Have you ever wondered, “Are my travel expenses being reviewed?” Fraudsters who have been successful at defrauding companies through the submission of fictitious travel expenses most likely have.

For Portland Investigator, Patience and Perseverance are Keys to Making the Case

Private investigator Eli Rosenblatt, CFE, knows that some cases are more difficult than others. In some of the most confounding investigations, “you're so often digging for information that's just not there, and waiting for some nugget to be revealed,” he said.

New U.S. Cybersecurity Framework Aims to Help Organizations Manage Risks

April 2014 By Mark Scott, J.D., CFE On February 12, 2014, the National Institute of Standards and Technology (NIST) released the “Framework for Improving Critical Infrastructure Cybersecurity” (Cybersecurity Framework), a tool designed to establish a baseline of security best practices that organizations can use to measure and mitigate cybersecurity risks.

Investigator Enjoys Fascinating World of Unraveling Frauds

April 2014 ACFE Member Profile Maria Kress, CFE, serves as an investigator with the Office of the Inspector General (OIG) for the Los Angeles Unified School District. From watching crime dramas on television and becoming an undercover store detective, to her current role unraveling fraud cases using investigative skills, surveillance and other means, Kress has found a fulfilling career in the fight against fraud.

Five Years On, "Madoff 5" Face Justice

When you are alleged to be deeply involved in the largest known Ponzi scheme in history, professed ignorance is not an acceptable defense.

For CFE, Crime-Fighting Runs in the Family

Ashley Koroluk, CFE, CAMS, is an Investigative Financial Crime Analyst for the Royal Canadian Mounted Police (RCMP).

Scandalous Science

August 2014 By Jaime deBlanc ACFE Research Editor For five years, a group of scientists at Iowa State University had been hot on the trail of a scientific breakthrough: a vaccine for the HIV virus. Their initial results showed that rabbits treated with the vaccine developed antibodies to HIV — an incredibly promising outcome, since it suggested that a human vaccine could also be created.

When it Comes to Tips, Having a Policy is Crucial

August 2014 By Scott Patterson, CFE The message is finally getting out: Tipsters may be the most unheralded front-line soldiers in the fight against fraud. More frauds are detected through tips than any other method. This has been consistently shown in the ACFE’s biennial Global Fraud Study, and the newest statistics from the 2014 Report to the Nations on Occupational Fraud and Abuse further reinforce the point. Businessweek and other major media outlets are reporting on it, too – many of them making note that other, long-depended-upon anti-fraud controls (such as external audits) are coming up short compared to tips. It is news worth sharing, as the implication is that the “see no evil, hear no evil” approach that many businesses followed for decades is now truly obsolete. To catch fraud, one must see it and/or hear about it. Then one must speak about it. “That’s great,” your executives or clients might say upon hearing this news. “So, why aren’t our phones ringing?” If only it were that simple.

Altered Statements: Are More Accounting Frauds on the Horizon?

By Scott Patterson, CFE December 2014 It’s been more than a decade since a slew of large accounting scandals rocked the financial world, including Enron, WorldCom and Tyco, among others. Enron in particular grabbed the nation’s attention like few cases before it: The tale of hubris, cover-ups and, sadly, financial ruin for many of the corporation’s employees and shareholders was splashed across news networks and journals worldwide. It was a case study explored in bestselling books and film, galvanizing public sentiment into a chorus somewhere along the lines of: “How could this happen?”

The Economist-Turned-Fraud Fighter

ACFE Member Profile December 2014 Siward De Vries, CFE, CBM, does not consider himself a “natural” when it comes to fraud examination. “I am a Dutch economist,” De Vries points out. “Most of my career in the European Investment Bank (EIB) in Luxembourg, I spent in lending operations, including 10 years in charge of operations in Asia.” In 2002, however, De Vries was asked to establish a fraud investigation program within the EIB. He knew he had to build his anti-fraud expertise.

Coca-Cola Data Breach Highlights Importance of Laptop Security

By Mark Scott, J.D., CFE December 2014 A recent data breach involving Coca-Cola Enterprises Inc. highlights a threat faced by almost every organization: lost or stolen laptops can result in devastating data breaches. A data breach is an incident that involves the loss, theft or unauthorized access of sensitive information.

Help Wanted: What Job Applicants May Be Hiding From Employers

Sarah Victoria’s application claimed that she had a degree from a reputable university, extensive experience in the field and no criminal record. What she failed to mention is that she previously spent time in jail for theft, has terrible credit, and never finished her degree from said university.

THE GLOBAL CORRUPTION PROBLEM: AN EXPERT SPEAKS

Corruption poses a serious threat to business interests worldwide. While bribery and other fraudulent acts continue to have significant impact on the global marketplace, measures to combat them, including the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act, have changed the landscape considerably and are causing corporations to reassess their controls and due diligence.

Anti-Fraud Consultant Has a Passion for Training

Laura Davies is a fraud risk management consultant for KPMG, LLP, in London. In her career as an anti-fraud professional, Davies has a focus on fraud vulnerability and risk assessments, internal controls and investigations.

Duplication of an Organization: What CFEs Should Know About Business Identity Theft

For years we have been warned about the threat of identity theft and the need to protect our personal information from those who seek to misuse it; however, the same emphasis has not been placed on business identity theft.

Another Fraud in the Crowd?

Crowdfunding has become a hot topic among investors, regulators and fraud examiners as the phenomenon has gained traction over the last few years.

INVESTIGATOR DIVES DEEP INTO DIGITAL DATA & INFORMATION

Before even graduating from college, Tyson Johnson, CFE, CPP, VP of Business Development at BrightPlanet in Ontario, had spent hundreds of hours conducting surveillance, performing interviews, writing reports, conducting undercover investigations, and even testifying in court.

Armed with CFE Knowledge, District Attorney Fights Fraudsters

Douglas Lowe, CFE, has served as Anderson County (Texas) Criminal District Attorney for 16 years. Prior to that, he was in private practice in Palestine, Texas as a certified personal injury trial lawyer.

Psychic Fraud: Do I See a Con Scheme in Your Future?

July 2014 By Laura Hymes, CFE If you met Theresa Caputo, the first thing you’d probably notice is her gravity-defying blonde hair, her distinctive voice or maybe her long nails if you shook hands. Whether you would notice a psychic energy surrounding her is a more subjective observation.

Knowing When to Walk Away … and When to Run

July 2014 By Scott Patterson, CFE You have been toiling for months on a case and you know where the evidence is leading. The satisfaction of solving the puzzle and unraveling the trail of fraud is what a fraud examiner lives for.

Interviewing 101: Analyzing Words in Speech

June 2014 The Fraud Examiner During a fraud investigation, there are many factors that make a successful interview. Careful preparation, timing, choosing the right setting and tone are all important aspects to consider before sitting down with an interview subject.

CFE USES EXPERIENCE AND OPENNESS TO LEARNING TO CHALLENGE BUSINESS-AS-USUAL

LaToya Lacey, CFE, CPA, Global Audit & Risk Director at Diageo has climbed her way to a position that leverages all of her learned and innate skills: delivering internal audits, communication, leadership and applying the knowledge gained from fraud training and education.

Far From ‘Game Over’ for Ransomware

June 2014 By Zach Capers, CFE Last month, the U.S. Department of Justice, in concert with authorities from the UK, Australia, Japan, Germany, France and the Ukraine, disrupted a massive botnet named Gameover Zeus that had been the primary distributor of the notorious CryptoLocker ransomware.

Do We Really Know ‘The Cloud’ At All?

Storing your photos, videos, documents and other information in “the cloud” sounds rather benign, to some degree – it conjures up light, airy thoughts of data at your fingertips, floating where it is easily accessible.

SELLING FRAUD PREVENTION TO MANAGEMENT

Fraud prevention measures are valuable to all organizations. Yet, how much fraud prevention is worth — March 2014 By Misty Norris-Carter, CFE, CIA

Numbers Don’t Lie: Critical Lessons from the 2014 Report to the Nations

When determining the impact of fraud on organizations and the economy, statistics still provide the best measuring stick – and they communicate facts in a compelling way.

Whistleblower Policies: Not Just for Large Organizations Anymore

May 2014 By Jacob Parks, J.D., CFE When a seminar speaker gets to a point in a presentation about the Sarbanes-Oxley Act (SOX), it historically has meant one thing for attendees who do not work directly with public companies: good time for a coffee break. However, those days seem to be coming to an end — at least when whistleblower issues are at hand.

CFE Battles Fraud Across International Borders

Colin Yates, CFE, is founder of Yates Fraud Consulting Limited in Melksham, England. He began his investigative career with the New Zealand Police, followed by various fraud and security roles in the telecom industry and, ultimately, his own practice.

Holiday Season Poses Unique Risks for Businesses

ditor’s Note: During the holidays, many people celebrate, give gifts, make charitable donations and engage in other traditional activities associated with the season. These observances often overlap into the corporate and business environment, and can instill a shared feeling of enjoyment or camaraderie among colleagues. However, they may also create a climate in which fraud can occur – along with some other negative consequences.

Fraud Week Spotlight: The Top 5 Insurance Schemes

Insurance fraud is a year-round threat. While we must remain vigilant at all times, the celebration of International Fraud Awareness Week (which kicked off on Sunday) should serve as a reminder that the battle is far from over.

From IT Director to Fraud Examiner: Using Technology to Unravel Schemes

ACFE Member Profile November 2014 John Schneider, CFE, CISA, CIA, serves as Chief Gaming Inspector at Pokagon Band Gaming Commission in Michigan. As a former IT director, Schneider knows the use of technology can be a key advantage both for fraudsters and the investigators trying to catch them.

What Fraud Examiners Need to Know About Tor

Tor is software designed to provide users with anonymity and security in some online communications.

The Managing Director Has a Secret

Catching a Fraud In Northern UK By Patrick Wellens, CFE, CIA, CRMA, with Shaun McMillan October 2014 Donovan, 48, from Scotland, was happily married with two children. He was tall and good looking, an extrovert whose outgoing personality helped him to do very well professionally. As a scientist, he built a successful research company that he sold for close to USD 70 million to a large pharmaceutical company that I’ll refer to by the pseudonym “Pharmatops.”

Identity Theft Tax Refund Fraud: Everybody Is at Risk

By Michael Hoffmann, CFE October 2014 Fraudsters who use stolen personally identifiable information can perpetrate a wide variety of fraudulent financial schemes, such as hacking online accounts, submitting phony insurance claims, and applying for loans and credit cards to pad their bank accounts. Increasingly, though, identity theft tax refund fraud is becoming a favorite money-making scheme for criminals.

'Fraud Doesn't Exist in Isolation — It is Part of a Greater Ecosystem'

Scott Swanson, CFE, CFCI, is a VP and practice leader of Global Risk and Compliance at Doculabs, a Chicago-based information and technology consulting firm.

Buyer Beware: Intellectual Property Theft Can Lead to Counterfeiting

Today, just about anything can be counterfeited – and just about everything is. Most counterfeit goods are made from stolen intellectual property.

To Find Control Weaknesses, CFE Tries to Think Like a Fraudster

Danielle Supkis Cheek, CFE, CPA, CVA, is the founder of D. Supkis Cheek, PLLC, based in Houston, Texas.

Fraudsters Make Data Theft Big Business

September 2014 By Scott Patterson, CFE Those who work, shop or just like to wander in the gilded aisles of Saks Fifth Avenue department stores know just what the Manhattan-born retailer represents: Luxury. Status. The very best apparel, jewelry and sundry other merchandise money can buy. So when a ring of employees from a Saks Fifth Avenue in the Queens borough of New York decided to commit theft using “borrowed” customers’ credit card information, they must have thought to themselves: “Why go anywhere else?”

Avoiding Conflicts with Clients

Tips and advice from Ron Cresswell, J.D., CFE, on ways to avoid or mitigate angry client relations.

8 Scams to Watch Out For in 2016

Unfortunately, fraud is a year-round threat. Here are 8 scams to watch out for in 2016 because they're gaining popularity.

Rising Wave: Anti-Corruption Efforts in Central and South America

In several Latin American countries, citizens are taking to the streets to protest widespread corruption in their governments, and the push for tighter legislation could create the opportunity for big changes.

Rising Wave: Anti-Corruption Efforts in Central and South America

In several Latin American countries, citizens are taking to the streets to protest widespread corruption in their governments, and the push for tighter legislation could create the opportunity for big changes.

All is Not Lost: Fraud Victims, Emotional Stress and the CFE

Fraud victims go through much of the same emotional aftermath as victims of violent crime. Jaime deBlanc-Knowles speaks with Stephen Peadnault, CFE, about the emotional impact of fraud and how CFEs can help victims cope with the trauma.

Executive Hiring: Don't Get Tripped Up By Cracks in The Pavement

Chelsey Franks explores flaws in the background check system and tips to help compensate for them during the process of executive hiring.

7 Steps for Designing an Anti-Fraud Training Program

Mark Scott, J.D., CFE, shares 7 steps for creating a robust anti-fraud training program within your company.

CFE's Childhood Experience Sparks a Passion for Fighting Fraud in Small Businesses

Interview with Samuel Martin, CFE, CPA, who shares the inspiration behind his decision to become an auditor and his favorite thing about helping small businesses protect themselves against fraud.

Unique Challenges Present Unique Opportunities for Risk Intelligence Director

As Director of Risk Intelligence for BMO Financial Group, Peter Warrack, CFE, has assisted with his fair share of investigations and challenges.

As Director of Risk Intelligence for BMO Financial Group, Peter Warrack, CFE, has assisted with his fair share of investigations and challenges.

Unique Challenges Present Unique Opportunities for Risk Intelligence Director

Attention Employers: It’s Time to Update Your Confidentiality Policies

According to a 2015 decision by the National Labor Relations Board (NLRB), it is illegal for employers to include a blanket policy that would prohibit their employees from discussing ongoing workplace investigations.

20-Year Special Agent: Integrity and Passion the Fraud Investigator’s Most Important Assets

Ann Petterson, CFE, Senior Manager at Baker Tilly, became passionate about fighting fraud at an early age. One of her biggest cases was the Sweet 'N' Low tax fraud case uncovered in 1997.

Ethical Decision-Making Tools: Two Models for Fraud Examiners

Laura Hymes, CFE, reviews two ethical models that fraud examiners can use when faced with tough decisions and shares some hypothetical questions examiners can ask to reach conclusions.

Fraud Fighter, Entrepreneur Raises Awareness in India

Interview with Apurva Joshi, CFE, the founder and CEO of Fraudexpress based in Solapur, India. Joshi created Fraudexpress as a digital media company to help increase fraud awareness, and provide news, views, training and other services for anti-fraud professionals. For her work as a fraud fighter and entrepreneur, she was recently featured in a book by a bestselling author Rashmi Bansal.

Office Manager’s Fraud Case Has Familiar Ring

A trusted office manager of a surgical care clinic, over the course of four years, found a crafty way to “redirect” company funds to a personal bank account.

The Perils of Bias in Fraud Examination

Bias can affect a fraud examiner in a number of ways. It shapes our perception of the facts. It can cause an auditor to look past red flags of fraud, or compel an overeager investigator to see malfeasance where none is exists.

Sage Advice Set CFE on Path to Uncovering Fraud

An interview with Peter Donnelly, CFE. As a deputy constable in Tarrant County, Texas, Donnelly has worked more than 1,000 non-real estate judgment writs and has collected more than $800,000 for plaintiffs in two and a half years.

Retail Schemes Make for Big Business

Zach Capers, CFE, provides insights on organized retail crime and shares tips on how merchants can remain vigilant, especially during and after the holidays.

Fascination with Risks and Controls Ignites CFE’s Passion for Preventing Fraud

After trying out many different sectors, Gregg Stephens, CFE, Head of Fraud Prevention and Payment Security at Citizens Bank, found his professional home in fraud prevention.

Check Your Biases at the Door

Hal Humphreys, CFE, reminds us to examine our motivation for pursuing fraud and check our biases at the door.

Fraud Fighter Goes Beyond His 9-5 to Fight Fraud and Inform the Public

Bobby Ndungu, Ph.D., CFE, CSSP, is the president of the ACFE Zimbabwe chapter and Managing Partner of the Southern Africa Institute of Security and Risk Management. Ndungu encourages chapter members and fraud fighters to conduct fraud awareness campaigns so that the public is made aware of what fraud is and how to combat it.

PINs of Omission

With the relatively new chip technology in credit cards, many observers are concerned that the lack of a PIN requirement will undermine the effectiveness of the technology and result in only a minimal reduction of credit card fraud.

Funeral Fraud: Scamming the Dearly Departed

Misty Carter, CFE, CIA, examines the case of James “Doug” Cassity, a disbarred attorney and resident of St. Louis, Missouri. His company, National Prearranged Services Inc. (NPS), engineered a scheme that defrauded purchasers of prearranged funeral contracts.

The Scammers Playground: How to Identify and Protect Yourself from Fake LinkedIn Profiles

Ryan Hubbs, CFE, CIA, CCEP, CCSA, PHR, shares tips on how to detect a fake LinkedIn profile and avoid fake opportunities, identity theft and phishing scams.

The Scammers Playground: How to Identify and Protect Yourself from Fake LinkedIn Profiles

Ryan Hubbs, CFE, CIA, CCEP, CCSA, PHR, shares tips on how to detect fake LinkedIn profiles to avoid fake opportunities, identity theft, and phishing scams.

Are You Keeping up with the Fraudsters Online?

Laura Hymes, CFE, explores new online and technological developments. She also shares why fraud examiners do not need to become tech experts, but do need a basic understanding of advances in the industry and a strategy to stay up-to-date on the relevant trends.

Assassination By DNA: Fact or Fiction?

Walt Manning, CFE, shares a theoretical exploration of future crime possibilities through the rising popularity of biohacking.

Mother’s Words of Wisdom Guides Private Investigator Through Career Changes

Mara McLaughlin, Senior Investigator at NYS Insurance Fund and NYS Licensed Private Investigator, had plans of becoming an attorney, but those plans quickly changed while she was working at a private investigations firm in her first job after college.

My First Fraud

The One that Changed the Way I See the World

Career is About More Than Numbers and Facts for Credit Suisse VP

As Vice President at Credit Suisse, David Bach, CFE, says that although he's an auditor, his job is about much more than just numbers and facts. It's about the people — both his colleagues and those he examines.

‘By Example, We Shall Lead’: Chapter Leader Sets Example In and Out of the Office

U.K. native Iain Gallie, CFE, Head of Risk Strategy and Frameworks for ASB Bank in New Zealand, entered the anti-fraud field after serving in the British Army Reserves with the British Royal Military Police.

‘By Example, We Shall Lead’: Chapter Leader Sets Example In and Out of the Office

U.K. native Iain Gallie, CFE, Head of Risk Strategy and Frameworks for ASB Bank in New Zealand, entered the anti-fraud field after serving in the British Army Reserves with the British Royal Military Police.

Sentiment Analysis: How Word Choice Can Leave a Trail to Fraud

Misty Carter, CFE, CIA, shares how sentiment analysis, an analytical tool that involves creating a system to analyze documents and other data to examine the authors' emotions and opinions, can be used to detect fraud.

Inquisitive CFE Works to Stay in Front of Fraud

“What if?” is a robust question. It was also the question that attracted Patti Buck-Torrey, CFE, Manager of Administrative Processes & Controls for FedEx SmartPost, to fraud investigation.

What You Need to Know About Virtual Currency Fraud

A fictional example of how virtual currencies could lend themselves to complex fraud schemes in the near future.

Wine Fraud: A Vintage Scheme

The practice of wine fraud goes back at least as far as the Roman era, and the biggest known scheme led by Rudy Kurniawan came to a head in 2012.

Engineer Turned CFE Helps Spread Anti-Fraud Training in Native Ghana

Although David Antwi, CFE, CIA, began his career in the engineering field, but when he was introduced to fraud detection and prevention, he was drawn to it right away. Antwi, who is currently the assistant vice president of retail risk and fraud operations for GenPact, said that after his manager asked him to oversee billing fraud management for a week he was “so hooked that I asked to take on that responsibility full time.” He quickly got his CFE only a few months later and now tackles fraud on a regular basis. Antwi, who is originally from Ghana, is excited to help future fraud fighters, having established a website focused on training those interested in fighting fraud in the African banking environment.

CEO Moving Mountains in Anti-Corruption Compliance

In order to keep up with global fraud trends, fraud fighters must be determined to persevere. As a mountain climber, former diplomat and current CEO, Philippe Montigny forged his sense of determination and perseverance “while climbing the Alps, Himalayas, Atlas Mountains, those of Lebanon, as well as the volcanoes of East Africa.”

Business Email Compromise: A Scam that Could Cost Your Company

Sam discovers that both emails were fraudulent, that there was no sale, and that he wired $500,000 of ABC’s money directly to fraudsters. ABC was the victim of a business email compromise (BEC) scam (also known as CEO fraud).

Risk Analyst for Southwest Airlines Uses Understanding and Compassion to Prevent Fraud

Samantha Weeks, CFE, deals with a variety of areas of fraud risk in her position as a business risk analyst for Southwest Airlines. In charge of examining potential risk in external partnerships, customer loyalty programs and internal threats, Weeks believes the key to prevention is not only information, but developing a deeper understanding of how people operate. “Know yourself. Know what motivates the people you work with,” Weeks said. “Understand how the Fraud Triangle presents itself in someone’s life. Have compassion for victims.”

Fahrenheit 212: The Temperature at Which Water Boils

Organizations with highly unethical cultures, such as Enron, do not happen overnight; it’s often a series of incremental changes.

Employee Monitoring: Legal Restrictions and Best Practices

As part of their fraud prevention strategies, many organizations monitor their employees’ activities in the workplace. Video surveillance can be used to deter and detect theft by employees. The monitoring of employee emails might reveal internal fraud schemes. Confidential business information can be protected by monitoring how employees use their computers. For each type of employee monitoring, however, there are legal restrictions that vary by jurisdiction. A company’s employee-monitoring program can be legal in one country but violate the laws of another.

Saints or Sinners? Whistleblowers’ Difficult Position in the Asia-Pacific Region

Whistleblowers can be divisive characters. Celebrated by some as heroes and denounced by others as snitches, few other elements that come up during a fraud investigation can spark such polarizing labels. During her session at the 2016 ACFE Fraud Conference Asia-Pacific, Jessica Sidhu, CFE, Llb, explored the precarious position whistleblowers are in. “Is a whistleblower a good person or a bad person? Is he a traitor or is he a patriot?” she asked the audience. “Only when you’ve answered this question will you be able to take a whistleblower seriously.” The topic was especially pertinent to discuss during the conference in Singapore, as the government of neighboring Malaysia has been involved for a few years with the 1Malaysia Development Bhd (1MDB) scandal. Global investigators believe that millions of dollars from the state investment fund 1MDB entered Malaysian Prime Minister Najib Razak's personal bank accounts.

Credit Cards: Experts Predict Fraud Trends for the Next Decade

The U.S. credit card system is undergoing big changes that will affect how financial institutions, retailers and consumers conduct transactions and try to prevent fraud well into the next decade. Financial institutions in the United States traditionally issued credit and debit cards with magnetic stripes that store customer account information, and retailers used point-of-sale systems designed to read the magnetic stripes.

Take Pride in Curiosity

Continuing to learn and feed her curiosity are some of the most important things to Dr. Susan Mangiero, CFE. In addition to her extensive background in financial fraud and risk management, Dr. Mangiero is a published author and is currently working on a new book. She is the lead contributor to a blog about investment risk management and compliance. Her work has taken her to many places and exposed her to multiple industries, something that she feels has strengthened her abilities to identify red flags and explain problems that occurred.

Fighting Fraud with Utah's White-Collar Crime Registry

Val Sedgwick used his ties to the Church of Jesus Christ of Latter-day Saints to assure real estate investors of his trustworthiness to use their funds to develop land, when in fact he was using their money to pay for his personal expenses and past debts. Nicholas Garza swindled his employer and its clients with an invoice edited to include fraudulent charges used only for his benefit. James Douglas Oliver convinced small businesses to pay for a spot on the “clown map” he was creating. His business, Clowns and Maps Are Us, never got around to making that map.

Chief Compliance Officer (and Avid Bowler) Prepared to Fight Fraud "Anywhere, Anytime"

“Think fraud, fight fraud, anytime, anywhere. Sacrifice for the good of others,” says Dante Fuentes, CFE, CPA.

BBB CEO Believes CFEs Should Look to Technology to Fight Fraud

Steve McFarland, CFE, CICA, CBM, first entered into fraud investigation as a personal favor to a friend who had fallen victim to a fraudulent general contractor.

CFE Understands the Importance of Being Proactive Within the Anti-Fraud Community

Anticipating the threat of fraud is essential in the global fight against white collar crime. With preparation, your organization stands a chance against perpetrators. “You first have to understand the present and potential risks,” says Brett Soldevila, CFE, CPA, Chief Compliance Officer at Security Holdings. “Take away as many opportunities to commit fraud as possible, and make sure employees are aware of company requirements and penalties for noncompliance through policies and training.”

Leveraging Machine Learning in Fraud Incident Response

As the office CFE, you recently learned of fraud allegations within your organization. Apparently, someone has been embezzling funds and using the accounts payable system to do so. You now have to begin the investigation to figure out who may or may not be involved —what do you do?

The Rise of the Short-Term Rental Scam

Before the Internet, travelers searching for a place to stay were typically limited to hotels, but in today’s digital world, they can also use online home-sharing portals such as VRBO, Airbnb, and HomeAway. These services connect homeowners who want to rent out a room or their entire house or apartment with travelers who want an alternative to hotel chains. With the home-sharing economy increasing, scams used to defraud unsuspecting consumers are also becoming more common. Because more individuals and organizations are using home-sharing sites to book short-term rentals, fraud examiners should be aware of the various types of scams that exploit this market.

Inquisition and Confidence Keys to Internal Controls Director's Success

Daniel Worrell, CFE, progressively and consciously grew his career from his first job out of college to his current position as the Director of Internal Controls at the New York State Metropolitan Transportation Authority. “My first exposure to the anti-fraud field was as an auditor for the New York Office of the State Comptroller,” says Worrell. “Solving or mitigating internal control weakness has been something that I enjoy. From that initial exposure, I have made sure that every job that I have held since has included some level of anti-fraud responsibility.” Here, he shares his tips to help his colleagues succeed in their careers whether they are in the beginning stages or seasoned professionals.

Integrity, Ethics and Discipline are Foundation of CFE's Career

One would think that Matthew Lynch, CFE, Director of Special Investigations Unit for Healthfirst, was raised to be a fraud fighter. “I’m the product of Catholic school and Military College discipline and education — with emphasis on the discipline.”

The Correlation Between Age and Risk Profiles

Do you think the risk profile of a young, eager professional beginning his or her first job out of college is different than that of a savvy veteran who has risen through the ranks of a company over a period of 15 or 20 years? In the eyes of a professional fraud investigator, the answer would certainly be yes. Any executive would likely reach the same conclusion in an impersonal, hypothetical conversation, but putting that knowledge into practice with familiar employees can be difficult. Executives in a position to supervise and monitor the activity of a 15- 20-year veteran can be blinded by their personal relationships with that person and rely too heavily on long-established trust. However, the risk that a long-term employee will commit fraud depends not only on the individual’s tenure and familiarity with the business, but also on the life circumstances of someone in mid-career.

Detective Spreads Fraud Awareness in His Community

For Rick Belik, CFE, Omaha Police Department Detective and part-time Task Force Officer for the FBI's White Collar Crime Task Force, fraud is often very personal. Belik, who was awarded the ACFE Outstanding Achievement in Community Service Award in 2015, has dealt with numerous cases of elder fraud. In addition to tackling cases that come across his desk, he is proactive about fraud education in his community. He has held numerous talks and seminars for senior citizens and caregivers to discuss common scams that target the elderly and how they can protect themselves from fraud.

Bribery on the Bench: A Look at Judicial Corruption

The two most common types of judicial corruption are political interference and bribery. Political interference is when politicians or staff from the legislative or executive branch meddle in judicial affairs or collude with judges in fraudulent schemes. Despite efforts in many countries to isolate the judiciary from politics, judges and other court personnel still face significant pressure to rule in favor of powerful political or business entities rather than in accordance with the law. A malleable judiciary can be used by those in power to provide protection for and lend legitimacy to fraudulent acts. Judges might also collude with politicians in a variety of different white-collar crimes, such as extortion, money laundering and embezzlement.

Former FBI Special Agent Flourishing in Global Private Sector

Richard McIlveen, CFE, CPA, vice president of corporate investigations for Iron Mountain Inc., first decided he might be interested in fraud investigation when he wanted to join the FBI. While he initially saw accounting as just a way to get a foot in the door, he quickly realized he had a knack for it. At Iron Mountain, he spearheaded an organization-wide push to become completely compliant with immigration employment laws. McIlveen has taken his talent and passion for risk management and now helps implement fraud controls across the world.

Think you're too educated to become a fraud victim?

The lack of correlation between a person’s education and their propensity to fall victim to a fraudster is all too familiar. Fraudsters are entrepreneurs. The types of fraud they perpetrate and the marketplaces in which they find success vary depending on their talents, skills and operating comfort zones. Also, fraud is a relational crime. Potential victims — prospective marks — will be more susceptible to the persuasions or pressures of someone with whom they are familiar. It can be difficult to say “no” in such circumstances. People are often charmed or seduced by compelling elements which resonate as emotionally familiar. Everyone scans for certain cues regarding other people's education or social station, but ultimately we can give over trust or suspend disbelief for reasons unconnected to rational thought.

Reverse Embezzlers: When Employers Steal From Their Employees

A simple definition of embezzlement is “the misappropriation of funds that have been entrusted to one for care or management.” Typically, embezzlement is a bottom-up offense, in which an employee, who could be anyone from an entry-level clerk to the director of the organization, steals from their organization’s financial assets.

Falsely Pleading Poverty: A Look at Bankruptcy Fraud

Bankruptcy fraud is a white-collar crime that can take on many forms. It can be used as a means to conceal assets to avoid having to forfeit them. In bankruptcy fraud schemes some people intentionally file incomplete or false forms or file multiple times in several states using false or legitimate information. Most bankruptcy frauds involve the concealment of assets. In some cases, individuals might transfer their unrevealed assets to family or friends to keep the assets from being located.

CFE Helps Keep Iconic Publication Free of Fraud

Philip A. Ciuffo, CFE, likes fixing things. As Chief Audit Executive for The New York Times, he ensures that the publication is diligent in their controls in all processes, and in his personal life, he enjoys fixing anything broken around his home. Ever since he began his career in investigating fraud for a major metropolis, he’s approached audits with pragmatism, but does not allow them to color his view on others.

The Audit that Created a Fraud

One of the challenges auditors face is persuading management to implement preventive fraud controls without inadvertently teaching them how to commit the fraud. Unfortunately, sometimes we have to explain in great detail, or worse, show how a fraud can be committed. We worry about this. Well, I worry about this. A lot. Occasionally we find blatant opportunity that we are stunned to realize no one has exploited. The most frequent reasons: ignorance and luck. Not exactly the best controls.

The Blockchain is No Mere Hype Train

The technology underlying the virtual currency Bitcoin has the potential to disrupt several industries while significantly reducing fraud. Known as blockchain, the technology was created to ensure the legitimacy of every Bitcoin transaction by tracking them in a distributed public ledger. Bitcoin has endured a divisive reputation due to its volatile value fluctuations and use in illicit transactions on the deep Web; however, the security and utility offered by its blockchain is anything but controversial.

The Internet of Vulnerable Things

While most people understand the importance of security when using personal computers and smartphones, far fewer recognize the perils posed by seemingly innocuous WiFi-enabled coffee makers, networked thermostats, and other smart products from the rapidly expanding Internet of Things (IoT).

The Most Likely Victim of Fraud Is …

Margaret is a retired schoolteacher and widow with two children and four grandchildren. Richard, a practicing physician, is a faculty member at a university medical center. Adam is a fourth-grader who excels at math but has a strong dislike for cleaning his room. John, an attorney, has been practicing tax law for more than 20 years, and his friends are among the upper echelon. Of these four people, who is the most likely victim of fraud?

Tracing the Untraceable: A Fraud Examiner’s Guide to Digital Forensics

We live in a world that is becoming more digital every day. From desktops and laptops, to tablets and smartphones — technology is all around us. This proliferation of technology presents new opportunities for fraudsters to commit and attempt to conceal fraudulent activity.

Investment Fraud and the Role of Trust

Investment fraud can happen to anyone, and unfortunately, there is no shortage of investment fraud possibilities. Affinity fraud, pyramid schemes, pump-and-dump security trading, high-return or risk-free investments, and pre-IPO scams are only a few of a long list of schemes that could separate investors from their hard-earned money. Investors can find themselves the victims of fraud when they don’t do enough due diligence or put too much faith in the people selling or managing a fund. Investors around the world would be wise to grasp fundamentals of the financial services industry so they can ask questions during sales pitches and be able to better vet product literature and contracts. Companies also need to better communicate risks in a user-friendly manner. A 2016 survey conducted by the National Association of Retirement Plan Participants shows that only one in 10 persons interviewed has confidence in financial institutions. Financial advisors are similarly viewed by some investors with skepticism. This is problematic.

Mentoring Young Fraud Professionals Gives CFE Purpose and Passion

Chelsea Binns, Ph.D., CFE, knew from a young age that she had the skills and perception to be a successful investigator, but her life as a CFE has allowed her to take on more roles than she ever expected. Out of all the roles she’s filled — investigator, fraud hotline operator, professor — her favorite has been mentoring young fraud fighters. Currently, she serves as the Vice President and Training Director for the ACFE’s New York Chapter, where she’s driven to help student members forge their own paths in exciting anti-fraud careers.

Fraud of Faith: When Churches Fall Victim to Embezzlement

Many revere houses of worship as the ultimate places of trust, and the people who work for them, pillars of the community. That makes it all the more painful when a church, synagogue or mosque, and their worshippers, fall victim to embezzlement.

Generational Fraud: Who’s Most at Risk?

Everyone in every generation is at risk of becoming a victim of fraud. And with the emergence of the World Wide Web in 1991, the continuing evolution of technology and the fraudsters who are keeping pace with today’s technological advances, the types and occurrences of fraud are ever-increasing. Fraud affects 25% of North American households annually and costs consumers approximately $50 billion. Here are some brief insights into the generations and the frauds to which they most often fall victim.

CFE Lets Compassion and Instinct Guide Her Career

Unlike some CFEs, Natasha E. Williams, CFE, CIA, didn’t begin her career in fraud. The global compliance manager for Bio-Rad Laboratories began in tax, but became interested in fraud after meeting a forensic account. She took a leap of faith and earned her CFE credential without a set plan. “When I first received the CFE credential I wasn’t working in fraud and had no idea how I was going to get the experience necessary to land a job in the industry, but here I am today,” she said. “I love what I do and I am living the dream — and so can you.”

CFE Works Alongside Law Enforcement to Champion Ethics

Elizabeth Simon, CFE, CPA, first became interested in becoming a fraud examiner after hearing about a fraud case in a CPE course. Since then, she’s worked in a variety of careers leading up to her current role as director of ethics and compliance at Cox Communications. Simon says since becoming a CFE she’s used the credential to strengthen and expand her role. “I have been able to work with law enforcement to put together evidence books for prosecution,” she said. “I am seen as an expert and am well respected by my boss, my VP and the law enforcement officials that I work with.”

Can You Teach Intuition?

Last week I taught a course on leveraging data analytics to detect fraud. I love teaching fraud courses and have had a decade-and-a-half love affair with data analytics — specifically what a mature analytics program can do for an organization. When teaching, my favorite moment is seeing the lightbulb go on for class participants when something truly hits home. But I struggle to explain how I knew when I found a fraud. Sometimes it was the unusual correlation between changes in related accounts, sometimes it was the new Audi R8 in the parking lot that sent me down a fraud sleuthing trail and sometimes it was just having the courage to keep asking questions. But how do I teach that? I can explain what I saw, what it made me suspect and how I went about verifying, but how do I translate that into something they can use when my students will probably never see something that exactly resembles my experiences? Can you teach intuition? Maybe, maybe not — but you can teach practices that help hone intuition.

Elderly Fraud Scams: How They’re Being Targeted and How to Prevent It

Those over the age of 65 are more likely to have lost money due to a financial scam than someone in their 40s. To help the elderly avoid becoming victims of fraud scams, it is important to understand why they are targets, what schemes and tactics are commonly used against them and how these schemes affect them.

CFE Helps Dentists Keep Fraud from Infecting Their Offices

Janice Janssen, CFE, co-owner of Global Team Solutions and Dentrix Certified Trainer at Henry Schein Practice Solutions, first became interested in fraud prevention when a dental practice at which she worked fell victim to embezzlement. The scheme was especially hurtful because it was perpetrated by someone she considered a friend. After processing the emotions so many victims go through, she became determined to help others prevent fraud before they could be taken advantage of. She started her own fraud prevention business to help dental offices, and partnered with another anti-fraud professional to help countless clients prevent, detect and recover from fraud.

Five Common Scams That Target Businesses

Businesses are attractive targets for fraudsters. They tend to have deeper pockets than individuals, and their ability to detect fraud is sometimes hindered by the large number of transactions they engage in. This articles discusses five common scams that that target businesses and how to stop them.

CFE Helps Fight Fraud in Native Texas

Having been a CFE for nearly a decade, Karen Sheppard, CFE, assistant vice president, Frost Bank, has seen fraud affect all kinds of people. “Fraudsters are ruthless and they don’t care how many lives they destroy. They prey on the homeless, the lonely and even the disabled,” she said. After initially becoming interested in fraud through working on a kiting scheme, Sheppard has continued her efforts to prevent and investigate fraud in her native Texas.

Make a Game Plan: How to Avoid Ticket Fraud

The NFL Super Bowl is just around the corner, and fraud can a serious concern in buying tickets from resellers. It’s not just sporting events that fraudsters target, either. Any event that requires a ticket for admission — a concert, festival or presidential inauguration, for example — is ripe for a ticketing scam.

CFE Syndrome: The Short Leap from Examining to Paranoia

“Second Year Syndrome” is the malady of medical students who experience the symptoms of the disease that they are studying at the time. If they’re studying skin cancer, suddenly that zit becomes melanoma. If they’re studying arthritis, their joints start to ache. If they’re studying narcolepsy, they suddenly feel they’re about to fall asleep. (That last might be attributable to being grossly overworked, but you get the idea.) I’ve been a Certified Fraud Examiner for more than six years now and I worked in the field of financial crime prosecution longer than that. I can testify that our Association’s version of Second Year Syndrome, “CFE Syndrome,” is real, it is alive, and it can permanently take over your life. CFE Syndrome is the belief that the CFE is about to become the victim of the type of fraud scheme she is examining at the time, and it can turn the most reasonable, common sense-driven CFE into a sullen, twitching bundle of suspicion.

CFE Ferrets Out Governmental Fraud in Sierra Leone

Adama Renner, CFE, FCA, is no stranger to fraud, having been involved in fraud detection and prevention since the early 2000s. She serves as the Deputy Audit General of Audit Service Sierra Leone (ASSL) and has played an instrumental role in exposing high-level governmental corruption that led to multiple public servants suspended without pay. Renner recently attended her first ACFE Global Fraud Conference and found the experience to be inspiring and enlightening. “Listening to the presentations and interacting with fraud examiners from other fields helped me to appreciate how I can better undertake my audits in order to increase the chances of a successful prosecution in a court of law,” she said.

Employer Payroll Fraud Adds Up: The Staggering Cost of Wage Theft

A recent study of the 10 most populous states in the U.S. by the Economic Policy Institute (EPI) found that 2.4 million workers lose approximately $8 billion annually to minimum wage violations. This amounts to nearly a quarter of the total wages of the affected workers (or about $3,300 annually for year-round employees). Extrapolated to cover the entire U.S., this suggests that workers lose more than $15 billion per year to minimum wage violations alone. Minimum wage violations occur when employers fail to pay their employees the legally-mandated wage. An employer might flout minimum wage laws by paying employees under the table or by requiring them to clock out at a particular time but to continue working without pay.

CFE Prevents Fraud Through Immersion and Communication

Britta Bohlinger, CFE, MA, Quality Manager and Auditor for IHK Berlin, and founding director of RisikoKlár, is no stranger to debates or uncomfortable discussions. From a young age, she enjoyed lively conversations with her father about his work and later became active in academic association discussions. She said, “The element of informal mentoring was invaluable — a source of motivation, challenge and aspiration. [The discussions] were also a source of comfortable discomfort as being an active member always reminded me of how much more I needed to learn.” As the only female CFE in Iceland, she now brings her passion for discourse and spreading risk management knowledge to the ACFE’s members-only online community and her clients.

Leaving the Door Open: When Fraud Happens From the Inside

In 2016, the Ponemon Institute conducted a study to examine the financial impact insider threats pose to an organization. Based on results of the study, the total average cost of insider incidents was approximately $4.3 million annually — with the largest cost resulting from contractor and employee negligence (68%) and malicious insiders (22%). Breaches due to employee and contractor carelessness cost organizations $2.2 million annually, while those related to malicious insiders cost organizations $1.23 million per year.

Sometimes, It’s All About What’s Missing

When we talk about fraud detection, we speak the language of red flags — and red flags come in many forms. Sometimes we look for attributes of the fraud itself, sometimes the signs of concealment or conversion, and sometimes we look for what’s just not there but should be. Most fraud fighters know the fastest way to find ghost employees is to look for what is missing — ghost employees will be missing vacation, sick days, retirement planning and physical access to systems or buildings. Ghost employees can be easy to spot when you know what to look for, but when else should we focus on what’s just not there?

Health Care Fraud Expert Focuses on Cleaning Up Private Practices

Dr. Richard Lyschik, DDS, CFE, FAGD, President of Practice Rescue, was in the health care industry for many years before he added fraud prevention and detection to his skillset. While providing management consultation to many practices, he observed a variety of fraud schemes and was disheartened at how many medical professionals were hesitant to do anything about it. He warns that perpetrators in health care fraud schemes can be anyone and that doctors need to get more serious about punishing fraud.

The Money Laundering Risk Posed by Lawyer Trust Accounts

A particular weak point was the lack of regulation regarding how lawyers handle client funds in interest on lawyer trust accounts (commonly referred to as IOLTA or IOLA). Congress passed regulation allowing the use of IOLTAs in the 1980s, following changes to federal banking laws that allowed certain checking accounts to bear interest. Attorneys use IOLTAs to hold either small or short-term client funds. The interest generated by these funds is then donated to charitable legal organizations (normally through a state IOLTA program).

The Emotional Impacts of Fraud

In the decade since that first experience, I have noticed a pattern with all my clients, whether they are the owners of small, closely held businesses, board members of a nonprofit organization or even CEOs of publicly traded companies — the first reaction to fraud has nothing to do with the money lost. It has everything to do with the emotions that accompany trust being breached. Fraud is typically perpetrated by the most trusted individuals in my clients’ organizations. These fraudsters are the last ones who would ever be suspected of such nefarious activity and the result is an understandable, gut-wrenching heartache experienced by clients.

Hooked on Fraud: Annual Conference Speakers Recall the Cases that Sparked Their Careers in Fraud Investigation

Many of the fraud-fighting heroes who will come together this June in Nashville, Tennessee, for the ACFE Global Fraud Conference are at the top of their careers. But fraud fighters aren’t just born with a sixth sense for schemes. Even heroes must learn what it takes to combat fraud. We talked to a few of this year’s conference speakers about the early cases that left an impression on them and taught them the essentials of fighting fraud. Through these cases they developed persistence, had their lives changed and learned the importance of counting cattle in West Texas.

From Fighting in the Cage to Fighting Fraud

Many CFEs pride themselves on being fraud fighters, but it’s rare for a fraud fighter to also be an actual professional Mixed Martial Arts (MMA) fighter; Josh Eckmann is one of those few crossover talents. While not yet a CFE, Eckmann is currently participating in the ACFE 90-Day Challenge — a sprint to prepare for, and pass, his CFE Exam. Eckmann has worked in the insurance anti-fraud field for years and finds that pinning down fraudsters in an investigation is more similar to facing down opponents in the cage than one might think.

Why Not-For-Profits Aren’t Comfortable Using the ‘F’ Word

Every year for the past decade, the not-for-profit (NFP) sector has been voted the most trusted in the world — but just how valid is that ranking when it comes to fraud? The sector remains highly vulnerable due to its foundation on a veneer of trust, however there continues to be a high level of complacency around the topic. Unless NFPs start to recognize and tackle fraud risk, their reputations and public confidence built up over many years could be wiped out overnight. So where does this apparent reluctance to deal with the issue stem from?

Big Data Analytics are Necessary to Fight Unique Fraud

When natural disasters, mass tragedies or class action settlements occur, victim compensation funds are often created contemporaneously. These funds are created to benefit victims, but they are also an attractive target for fraud. When large corporations, agencies or insurance companies establish relief funds, fraudsters rationalize their thefts because they believe that these large entities can absorb the costs. Since huge settlements involve numerous transactions and claims, fraudsters often hope that their actions will be lost in an enormous sea of data. The allure of a big payout can be a draw for fraudsters. Luckily, there is an answer: big data analytics.

Chicago Police Sergeant and CFE Helps Rebuild After Fraud

Like a number of CFEs, Sgt. Paul Bilotta of the Chicago Police Department became interested in fraud when it hit close to home. In the late 2000s, the president of the Chicago Police Sergeants’ Association was arrested when it came to light he had embezzled more than $1 million from his fellow officers’ dues. “He hurt his friends who trusted him, and he hurt his co-workers who believed in him,” Bilotta told the Chicago Tribune. Bilotta never intended to get involved with the case but ultimately found himself as one of the leaders of the association as they rebuilt.

Plunged into Darkness: The Threat of Power Grid Hacking

While a report prepared by the Risk and Infrastructure Science Center indicates that severe weather — like Hurricanes Harvey and Maria — lead the pack when it comes to causes of power outages in the U.S., Mother Nature is not without rivals. Power grids can go down for a number of reasons beyond natural disasters. They often use aging equipment, are prone to human error and can just malfunction. However, energy hackers are starting to play more of a role in blackouts.

5-Day Vacation Leads to CFE Founding Dispute Resolution Service

Jill Handley, CFE, was born and raised in Marble Rock, Iowa, on her family’s farm in the house where her father was born. One of the many things she learned from her mother was how to make cookies. Even now, when she is not running her own dispute resolution service, she spends time making cookie-cutter cookies. “I have collected more than 250 cookie cutters of all shapes, themes and sizes,” she said. “It is a hobby that permits creativity, but it is also relaxing because of the repetitive nature of the cutting.”

What to Expect When You’re Expecting Disaster Fraud

Fraud schemes in the wake of a disaster are as certain to happen as the heavy rains and top-speed winds from a hurricane. Past storms such as Hurricanes Katrina, Rita and Sandy showed that disasters not only create optimal conditions for schemers to exploit, but also that the swirl of confusion and destruction that follow can make discerning fraudulent acts from honest victims in need extremely difficult. However, these past storms also showed the importance of being prepared and ready to confront disaster fraud.

Shining a Light on Shell Companies: How Countries are Changing Beneficial Ownership Requirements

You don’t have to go further than turning on your flat-screen TV to know that crime and corruption are constantly in the news and focal points for TV entertainment. However, what’s less understood by the general public, but well known to investigators, is that the most mundane details of a case are often the most important ones. One of these obscure elements is now in the spotlight: anonymous shell companies, and the role they play in enabling money laundering and illicit activities. Whether it’s the Panama Papers leak in 2016, the massive Brazilian Car Wash scandal, the Russian laundromat, or a growing collection of news articles involving luxury real estate purchased by shadowy figures, the role that anonymous shell companies can play in nearly every crime that generates money is being revealed.

AI in the Fight Against Fraud

While the mention of artificial intelligence (AI) may prompt many people to immediately visualize sentient robots taking over Earth and subjugating the human race, limited forms of AI have already been contributing to anti-fraud efforts for decades. As AI tools evolve, so too will their roles in fighting fraud, with major implications for many industries in which fraud is prevalent. As technology shapes the global economy and consumer behavior, it also influences the way fraud is perpetrated, thereby requiring adaptation in the perpetual fight against fraud. One tool that many organizations are looking to use is AI.

Digital Currencies – A Wake Up Call for Fraud Investigators

Digital currencies as a medium for the exchange of value are here to stay. Many predicted that crypto-currencies (digital currencies using encryption techniques to regulate and verify the generation and transfer of currency units) would be short-lived due to the lack of trust, lack of regulation and the fact that their use was simply too complex for the majority of the general public — yet how wrong they have been.

Unique Online Marketplace Presents Uncommon Challenges for CFE

Although he began his career in law, Richard Barbieri, CFE, found himself drawn to fraud cases. Now the senior manager of risk operations at Etsy, he deals less with money laundering cases and more with customer and merchant verification. When he isn’t overseeing his team of 20 at work, Barbieri enjoys running and cheering on his favorite baseball team.

Turnabout’s Unfair Play: The CFE Gets Defrauded

One would think that a CFE with over nine years of experience assisting in the prosecution of white-collar crimes would be somewhat Zen about being the victim of a fraud attempt herself. One would think that, and one would be wrong.

Equal Opportunity Fraudsters

After high-profile CEOs Martin Shkreli and Elizabeth Holmes got their comeuppance for securities fraud in March 2018, the Washington Post and New York Times published stories examining the disparities in their punishments. While public image might be an important aspect in their cases, John C. Coffee, Jr., a law professor at Columbia University, adds another interesting factor to the mix — gender. The case of the two CEOs provides an opportunity to take a closer look at the relationship between gender and fraud and the types of frauds that men and women (in particular) tend to commit.

The 2018 ACFE Report to the Nations Examines the Costliest Fraudster: The Executive

In the 2018 ACFE Report to the Nations on Occupational Fraud and Abuse, the ACFE studied 2,690 cases of fraud from 125 countries in 23 different industries. While the fraudsters came from different backgrounds, displayed varied red flags and were discovered in a multitude of ways, one very clear fact emerged: owners or executives that committed fraud caused the greatest monetary damage.

ACFE Authorised Trainer Draws on Many Decades of Anti-Fraud Work at the UN and USAID

Hossam El Shaffei, CFE, has been interested in fighting fraud since first seeing normalized bribery occur in his native Middle East. Currently a partner specializing in risk advisory services at RSM Consulting, he has more than 35 years of global and regional work experience in multinational organizations such as the United Nations (UN) and United States Agency for International Development (USAID). El Shaffei also established ACFE chapters in Egypt and Jordan, and recently became an Authorised Trainer for the CFE Exam Review Course in Jordan, Egypt and Lebanon.

Ad Fraud: How Phony Leads Pose a Financial Threat to Organizations

Based on the name alone, it seems like ad fraud only affects those in the digital advertising and marketing industries — but that could not be further from the truth. If a business has any online presence, including websites or social media accounts, it could be a prime target for ad fraudsters.

An Emerging Data Breach Threat: Cryptojacking

The use of coin miner malware is generally referred to as “cryptojacking.” This malware quietly hijacks the infected computer and uses its processing power to mine cryptocurrencies — and it's quickly becoming the most prevalent type of malware to hit business devices.

Insurance Investigation Proves Ideal Industry for CFE

Victoria Rodriguez, CFE, grew up surrounded by law enforcement influences. She always knew she wanted to help bring wrongdoers to justice and found her perfect fit not wearing a badge, but working in the special investigations unit of Texas Mutual Insurance. Even after a decade since obtaining her CFE credential, she still approaches each investigation with an open mind and adaptability to follow where the evidence takes her.

Lessons Learned From the GoFundMe Fraud

What started as the heartwarming story of a homeless veteran giving his last $20 to a stranded motorist, whose car had run out of gas on a Philadelphia highway ramp, quickly turned into a cautionary tale of the dangers of online fundraising sites and their potential for fraud.

The $18 Million Mistake: What You Can Do to Save Your Firm From Ineffective Risk and Compliance Documentation

I am no longer amazed by the missteps of any financial organization. The incentive policies and amalgam of personnel with widely differing views (borne out of previous financial organizations) can lead to a cocktail of disasters. Today, policies and standards seem to be written in a vacuum, only to see the light of day when regulators call. However, it appears we do have a benchmark: a well-understood policy is worth $18 million, plus costs, time and energy.

Author and CFE Emphasizes the Importance of Educating Your Community

Dr. Tonisha Pinckney, CFE, is not only the founder of Revelatus Specialized Accounting & Consulting, LLC, but is also a lecturer, adjunct instructor, a former director of criminal justice undergraduate and graduate programs, assistant dean and a published author. Dr. Pinckney’s extensive work volunteering in her community and spreading fraud awareness education bolsters her core philosophies. “I feel it is my duty and purpose to mitigate the impact of victimization in communities. With education comes responsibility,” she said. “As CFEs, we are empowered by our education and must responsibly use it to educate those who would not ordinarily have access to our services.”

Phantom Debt: The Dark Side of Debt Collection

Phantom debt schemes vary wildly, but generally involve the attempted collection of debt that either doesn’t exist, has already been discharged or has been artificially (and illegally) inflated. These schemes run the gamut, from outwardly criminal (e.g., an individual cold-calling people trying to collect an imaginary debt) to having a veneer of legitimacy.

How Opportunity for Probate Fraud Arises

Death is an inevitable part of life and as loved ones pass away, many find themselves dealing with a number of practical matters. One aspect that needs to be handled is probate — a legal and accounting process that is triggered by the death of a person. Probate forces people to face hard topics at a time of loss and change, and unfortunately due to that hardship, it can serve as an opportunity for unscrupulous fraudsters to prey on victims.

ACFE Chapter Vice President Challenges Complacency in Fraud Fighting

David Kirtland, CFE, CIA, CRMA, is not one to slow down any time soon in his fight against fraud. Since joining the ACFE in 2013, the current compliance manager at AXIA Partners has kept extremely active in continued learning. “It is so important for us as anti-fraud professionals to guard against complacency in our development because the people committing fraud are not stagnant,” Kirtland said. “Fraud is a continuously evolving thing that is constantly trying to gain and retain the upper hand, and if we do not continuously seek out new knowledge, we will quickly become irrelevant.” He is also a pillar in the anti-fraud community — Kirtland serves as program director and vice president for the ACFE Houston Chapter.

Banks Are Businesses Too: Look Beyond the Usual Suspects When Subpoenaing Bank Records

When investigating potential frauds, examiners often use financial institution records. While they can be of great value to an investigation, I have also seen cases where the information called for is too limited in scope and may not reflect the true nature of the subject’s business with the bank. We know that banks hold and manage documents such as signature cards, account statements, etc., but have you considered delving into the business process of a bank? This is information that is necessary for them to conduct business and extends well beyond account information. It could include records of telephone conversations, internal bank emails, as well as meetings and discussions. These documented communications or decisions by personnel and higher-ups could have an impact on client accounts. During a fraud investigation you might subpoena this type of information, so why think of banks data differently?

You Can’t Outsource Risk: Managing Fraud in Outside Vendors

Division of labor has naturally integrated into every part of our society over time. Individuals pursue education and careers according to their strengths and passions. On a higher level, even organizations find success by focusing resources on what they do best and outsourcing what they don’t; hence, the rise of business process outsourcing (BPO) vendors. While they have been around for a while, BPO vendors became more mainstream in the early 21st century. The global BPO market grew from $45.6 billion in 2000 to $140 billion in 2016, with an anticipated revenue of $163 billion by 2021. Initially, businesses sought out BPO vendors to reduce expenses related to back-office tasks, such as accounting and administrative functions. For such services, BPO vendors can often provide a higher level of service at a much lower price. However, outsourcing front-office tasks quickly followed.

CFE Approaches Fraud Investigation with Adaptability and Curiosity

Shannon Grayer, CFE, CBM, CCEP may have earned his CFE more than a decade ago, but his passion for learning more about the world and fraud examination has never waned. The head of ethics and compliance investigations for CSRA Inc. has lived in multiple countries, stays abreast of technological advancements in the IT industry and works with major players in U.S. national security. When he’s not on the job, you might catch him at a show or museum in the Washington, D.C. area.

The Psychology and Motivations of White-Collar Criminals

Why do people commit financial fraud against the businesses that employ them? Do they lack the resources to fund their lifestyles? Are they under pressure to meet revenue targets that result in executive bonuses? Is there an underlying hostility toward the corporation or the government entity? The motivations giving rise to these questions may be present in a major portion of fraud; however, all of them fail to address the underlying mechanism that enables almost all white-collar crime.

Canadian CFE Finds Perfect Fit as Director of Fraud Prevention

Montreal-based fraud examiner Sandrine Paquin-Lessard, CFE, CPA, CFF, CA, has enjoyed a meteoric rise in the anti-fraud field. The director of fraud prevention and detection for Cogeco Communications knew she wanted to fight fraud the first time she took a fraud-related class while studying to become a CPA. She quickly set her sights on securing a job in the field and hopped around a couple firms before finding her perfect role at Cogeco. In her spare time she loves to surf and salsa dance.

The Billion-Dollar Question: Where Do Corporate Fines and Penalties Go?

Anti-fraud professionals’ efforts in detecting and exposing fraud across multiple industries often result in severe fines and penalties. While these might make national or global headlines, what is often left unanswered in those stories is who benefits from the well-deserved fines and penalties levied against major corporations.

A Holistic Approach to Fraud Risk Assessments

Today’s management teams and boards are being asked to report on the status of their risk management programs more than ever before.With all this attention, it’s not surprising that management and board members are investing heavily in new methodologies, strategies, tools and systems to navigate this increasingly complex governance, risk and compliance (GRC) environment. A Fraud Risk Assessment (FRA) is an important piece of that puzzle. It should not be seen as a stand-alone or one-time exercise, but closely linked to the organizations overall risk management program.

CFE Tackles Insurance Fraud

Mary Durden, CFE, FCLS, has enjoyed a long tenure at insurance giant GEICO. Beginning as a customer service representative, she found her calling as a special investigations unit (SIU) field analyst. Since embarking on that career path, she has investigated and assisted in the prosecution of hundreds of fraudsters.

Return to Scammer: A Look at Online Purchasing Fraud

The ease with which consumers can order and return products through online retail outlets allowed three Indianans to develop a system that made them more than $1 million before they got caught. While Amazon might be able to withstand fraud losses more so than smaller operations, all online retailers need to face the realities of e-commerce fraud and determine which methods of prevention can get them to a manageable level of fraud loss.

Under Pressure: How Organization Incentive Programs Can Lead to Fraud

Every organization uses incentive programs. Some organizations’ incentive programs can have positive outcomes and others only have moderate outcomes, but both can lead to fraud. So what causes one program to result in fraud while another does not? Unfortunately, there are many factors, but it starts with the purpose of the incentive program. Is the purpose to inspire, punish, influence or deter?

From Public Sector to Private Sector to Heading Up His Own Firm: One CFE’s Journey

Paul Hurrell, CFE, has enjoyed a long and varied career in the anti-fraud field. He began in the public sector, serving in the New Zealand Police before making a switch to the private sector. Now the head of his own firm, Hurrell Global Risk, he is thriving in the ever-evolving landscape international client services. “What I enjoy are the opportunities it has given me to meet people in different locations, areas of business or countries I may not have met otherwise,” he said. “I work on engagements that use my skills in areas I had not even thought of — some not related to fraud or crime at all. Also, those I assumed would be competitors have become associates and mentors, generously imparting their experience and knowledge.”

How a Nearly $2 Billion Fraud in India Continued Undetected for 6 Years

Many large-scale frauds have had lasting impacts on companies, industries and even countries. Some negative, some positive. In the case of India’s Punjab National Bank (PNB) and its still-unfolding fraud scandal, there are indications that the ultimate result could be a much more fraud-resistant banking system in one of the world’s fastest-growing economies.

How Identity Theft Data Goes Unreported

The FTC is one of the largest agencies that records consumer complaints. Their compiled data provides one of the best pictures of fraud we can get. Unfortunately, people often have no idea that they should notify the FTC. In lots of cases, the people most likely to have their identity targeted don’t even know their identity has been stolen.

Lessons Learned from the Fajita Bandit

In 2017, a Texas man was arrested for stealing more than $1.2 million worth of fajita meat from his government employer. The man was quickly nicknamed “the fajita bandit,” a phrase that proved irresistible to headline writers. Dozens of news outlets picked up the story, and the fajita bandit gained brief, widespread notoriety. The case made news again in April 2018 when the fajita bandit was sentenced to 50 years in prison for his crime. While it is a strange story, the case of the fajita bandit contains useful lessons about fraud and internal controls.

Norwegian Fraud Fighter Draws on Decades of International Investigations

Erling Grimstad has enjoyed a long career in the anti-fraud field. Starting out as a financial police investigator, he worked for the Norwegian Serious Fraud Office, headed up investigation and compliance teams in accounting firms and most recently established his own law firm to tackle investigation and compliance issues for private clients. His investigations have spanned the globe and he has encountered a wide range of fraud cases. From his earliest days he knew he wanted to right wrongs in the arena of financial crime. “I got a strong perception of unfairness and injustice,” he said. “That has been my motivation to fight fraud and corruption since.”

Gift Card Scams: Just in Time for the Holidays

According to the 2018 Deloitte Holiday Retail Survey, 54% of Americans plan to buy gift cards during the holiday season. Gift cards are the most popular gift listed in the survey, beating clothing (53%), toys and games (46%), and books (43%). Clearly, Americans love gift cards, unfortunately, fraudsters love them too.

Compliance Expert Returns to 20th Century Fox

Peter Treyvaud, CPA, has nearly three decades of experience in the compliance and fraud risk management realm, and his work has taken him around the world. Currently the senior vice president of corporate compliance for 20th Century Fox, he has been a member of the ACFE for a number of years. “The ACFE provides me with convenient access to fraud risk thought leadership, tools and techniques that have helped me to plan and execute our fraud risk management program and to ‘sell’ the benefits of the program to key stakeholders,” he said. “I also value the ability to easily connect with like-minded professionals through my ACFE membership.”

Curaçaoan CFE Inspires Youth Through Volunteering

Dennis Dambruck, CFE, CPA, CMA, has enjoyed a long, illustrious career in the financial sector. While he’s worked in many different countries, he currently lives in the small island nation of Curaçao, where he volunteers with youth sports nonprofit organizations. In his spare time he plays baseball with his sons and runs marathons.

Spotlight on Fraud and the Low-Income Housing Tax Credit

In 2017, PBS’s long-running documentary series Frontline examined the Low-Income Housing Tax Credit (LIHTC) program to determine whether it was living up to its goal of creating affordable housing for low-income Americans. But, as fraud examiners know, maintaining a successful government program means guarding it from fraud, especially when the program provides a vital service such as affordable housing.

Is Your Blindness Motivated or Indirect? How Corporate Executives and Small Business Owners Commit Financial Statement Fraud

Has there been a time in your life when you were conflicted between two choices? While there are certainly times when you can’t go wrong with either choice, there are definitely instances when what you should do and what you want to do fail to align. What choice do you make in those situations? Do you follow your ethical and moral code, or do you cave in to your desires? Just like a number of corporate executives and small business owners, the decision you think you will make may not match the decision you actually make.

CEO of the ACFE’s Largest Chapter Reminds Fraud Examiners They Are All Leaders

Jaco de Jager, CFE, is the CEO of the ACFE's largest chapter, the ACFE South Africa Chapter. He manages a group that is responsible for more than 6,000 chapter members and is currently helping put together the 11th Annual African Fraud Conference and Exhibition. He believes fraud fighters can play an important role in their jobs and communities. “Remember that you pave the way for others, and as a leader, you must continue doing your part to do away with fraud and corruption,” he said. “You form part of the unsung heroes. Keep going.”

Not All That Glitters: When to Question Success

We value success so highly, that even intelligent, rational people will accept it at face value and not question it. Look at Bernie Madoff — he was guaranteeing impossible 20% returns. Enron grew every quarter and never missed a forecast or expectation. In hindsight these were clear red flags, yet in real time only a small number of people ever questioned whether those successes were possible. So why don’t we question success?

Brave New World: Can Biometric Security Help Fight Fraud?

The College Admission Scandal: A Textbook Example of the Fraud Triangle

CFE Brings Community Service and “Outside the Box” Thinking to Government Forensic Accounting

Compliance Manager Aims to Create a Work Environment People Are Proud Of

Following the Funds Abroad

Consider the following scenario: a client has asked you to find suspected fraud that may have been committed by one of the client’s employees. There are allegations that the suspect had moved some of stolen funds to an off-shore tax haven. If you’ve never conducted a foreign investigation before, there could be some significant issues and hurdles that impact the case before it even gets going.

Overview of Facebook’s Libra Cryptocurrency: The Initial Response and Fraud Implications