Why Should you hire a Certified Fraud Examiner?

 

CFEs are certified to conduct fraud investigations by the Association of Certified Fraud Examiners (ACFE). Each CFE is required to have at least a Bachelor’s degree and at least two years of professional fraud investigation or accounting experience.

Finally every CFE must also pass a rigorous examination regarding detecting and proving fraud. For more information regarding the CFE credentials, please visit www.acfe.com

If you require further information on this topic or any other fraud related topic, I invite you to contact me via email; contact@emgfraudconsulting.co.uk

 

Anti Fraud Policies

There are various forms of policy that can help you in the fight against fraud in your business. At the very least you should have:

A Code of Conduct.

An Anti-Fraud Strategy.

A Fraud Response Plan.

A Whistle-blowing Policy.

However, policies alone cannot ensure that the appropriate controls to prevent employee fraud are maintained. It is extremely important to have a zero tolerance for fraud.

This is only achievable by taking action and not accepting low-level fraud, for example petty pilfering of stationery or the inflation of business expenses.

The anti-fraud culture must be endorsed and thoroughly followed at all levels meaning that it applies to senior members of staff just as much as any other employee within your organization.

If you require any more information about this topic or assistance with the preparation of appropriate anti-fraud policies, I invite you to contact me via email,  contact@emgfraudconsulting.co.uk

Differences and similarities between Fraud and Corruption

Fraud and corruption are two words that we hear everyday and everywhere. Both are on the increase in every jurisdiction worldwide and their methods are evolving to the development in technology. Who among us did not receive at least one fraudulent email in the last month?
 

Is corruption a form of fraud? Or are these two different things? A review of the definition of these terms may suggest an answer.  In broadest terms, Fraud means any crime to gain that uses deception, while corruption means decay or the act of dishonesty.  

 

The International Auditing and Assurance standard board defines Fraud as “any illegal act characterised by deceit, concealment or violation of trust". Fraud schemes are used to commit corrupt activities and the Association of Certified Fraud Examiners further categorises it into Asset Misappropriation, Financial statement irregularities and Corruption.

 

The OECD/ World bank  defines corruption as “the abuse of public or corporate office for private gain” and can be categorised in different forms such as bribery, extortion, fraud, trafficking illegal gratuities and economic extortion.

 

The business dictionary differentiates between these two terms as follows: Fraud is misrepresenting yourself or something falsely. For example, if you use a fake ID, you are committing fraud by misrepresenting your identity.

 

Corruption is a broad term that can be applied to fraud, as well as other dishonest acts such as bribery, extortion or embezzlement. The two can be used in several instances but can apply specifically to business. Corporate leaders are often prosecuted for various fraudulent and corrupt acts, as well as political office holders.

Have you reached a conclusion yet? One thing we can for sure, agree on: Fraud and Corruption are very bad practices and should be prevented at an early stage.

Deceptive Prize Draws


There are two types of deceptive price draw scam. With the first type, you receive a letter saying you have won a large prize. However, you are asked to send a fee to receive it. If you read the small print, it says you are only being entered into a prize draw.

The second type says that you have won a prize but have to order something from a catalogue to receive it. Again the small print makes clear that you are just being entered into a draw.

It is important for you to think properly whenever you receive any notification that you have won a large cash prize. Take your time and ask yourself the following questions; Have you knowingly entered a draw or raffle? Does the letter ask for a fee (look out for phrases such as "processing fee" or "administration charge")?

Several thousands of people fall victim every year, collectively losing a large amount of money. Victims are often repeatedly targeted and its often the vulnerable and elderly who are most affected.
 

For more information on this subject, I invite you to contact me contact@emgfraudconsulting.co.uk

Foreign lottery scams

Thousands of people are told every day that they have won lots of money in lotteries they never entered. You may also be asked to pay an administration fee for a prize which does not exist. Lottery scams often use the names of legitimate overseas lotteries (often Spanish lotteries), so that even if you do some research, it will seem genuine.

A good example of the genuine Spanish lottery scammers falsely use is the “El Gordo lottery”.  It is impossible to win this lottery if you have not bought a ticket from an authorised distributor in Spain.

Some other names that scammers will often use are the International Lotto Commission, the Princess Diana Lottery, Canadian and Australian lotteries.

Alarm bells should ring when an email, letter or text message you receive about your winnings ask you to respond quickly or risk missing out. The scammers do this to try and stop you thinking about the surprise too much, in case you begin to suspect it could be a scam or another form of an invitation to send money out using a money transfer service.

 

Another warning sign involves the scammer urging you to keep your winnings private so as to maintain security or stop other people from getting your prize money by mistake. Scammers do this to prevent you from seeking further information or advice from independent sources.

 

For more information on this subject, I invite you to contact me via email, contact@emgfraudconsulting.co.uk.