A Slippery Slope to Major Fraud

Ever wondered what it may take to become a fraudster? Where would it all start and where would it all end? Listening to someone who has gone down that path shows how easy it indeed may be. Diann Cattani, a well known convicted fraudster, regularly describes her own slippery slope to major fraud and how she ended

Beware of the Invisible Gorilla

When it comes to fraud you need to be aware of the unexpected. Watch this famous Harvard cognitive test below before reading on: So how did you do? Did you notice the gorilla? A remarkable percentage of people drop their jaw and ask “are you crazy? There was no gorilla. Listen, if there was a

Crucial Aspects of a Highly Effective Audit Committee

So, what are the crucial aspects of a highly effective audit committee? This is a very important question to answer if you work in the field of fraud investigation and forensic accounting. According to Cynthia Fornelli, Executive Director of the Center for Audit Quality (CAQ), “having a board and an audit committee that is willing to

Ethical Advice for Fraud Examiners

There are many issues that Certified Fraud Examiners (CFEs) face and will face in the future and these issues relate or are seemingly dependent on the particular role or roles that you may play. Are you are an internal auditor? Are you working for the company that is the victim? Are you brought in from the outside? If you are, then

Fraud in the Construction Industry

Origins of fraudulent activity in the construction industry. Fraud in the construction industry comes from a variety of sources in a variety of guises, which is what makes it so unique. If you just think about a typical construction project, you’ve got a municipal contracting agency, you’ve got a consulting, design or engineering or architect corporation, you’ve

How to Protect your Company Against Data Theft

Data theft¹ is the illegal transfer or storage of any information that is confidential, personal, or financial in nature. It is considered a serious security and privacy breach and the consequences of data theft can be severe for both individuals and businesses. It has and will continue to cause many untold problems for organizations across the globe so

Key Points to Remember when Working with Prosecutors

One of the many important roles that CFEs of Forensic Accountants may have to play is to work with prosecutors and be involved in a litigation process. Learning how to best work with a prosecutor can make your job a lot more easier and a lot more fulfilling. You should know, that the most important

Money Laundering, Bank Fraud and Customer Trust

Money laundering is the process of attempting to conceal the source of illicit or ill-gotten gains. What most people may not appreciate is that money laundering really threatens the safety and soundness of the US Financial Services industry. If you look at the events of the Arab Spring¹ and some of the dictators that were deposed

Pitfalls to Avoid in Data Handling

One of the biggest pitfall to avoid in data handling are false positives. This frequently occurs when you apply too many rule-based types of tests. It can be very frustrating not only to the person running the analytics but to their management who they’re reporting it to. It is much more beneficial to perform 15-20

White Collar Crime

White-collar crime¹ refers to financially motivated nonviolent crime committed by business and government professionals and is highly prevalent in today’s business world. So how or why does it happen? These issues can be categorized into six main areas as shown below. 1) Role of social standing and entitlement in offenders According to Gilbert Geis, Ph.D, CFE, and former ACFE