Category: Finances

  • Three Strikes…You’re Out

    June 23, 2023
    At a Little League game, you usually think about bases being stolen, not cash. Unfortunately, the same volunteers selling hotdogs and cotton candy at the concession stand may also be taking advantage of their volunteer position and stealing. One woman recently pocketed more than $2,000.00 from the team’s concession stand.
  • Recent Ruling: Medidata Solutions, Inc. v. Federal Ins. Co.

    November 7, 2018
    The case Medidata Solutions, Inc. v. Federal Ins. Co. involved a fraudulent impersonation scheme and an alleged entry into the insured’s computer system. The case involved a series of events seen all too often. The court’s ruling presents a peek into the intricacies of analyzing coverage in traditional computer fraud claims. It is important to understand the difference between loss resulting from social engineering schemes and computer hacking. Losses involving social engineering do not require a hacker gaining unauthorized access.…
  • Computer Fraud Trends

    October 18, 2018
    Since May 2000, the FBI’s Internet Crime Complaint Center (IC3) has received more than 4 million complaints. Incidences of internet crime are steadily increasing. In 2013, IC3 received 262,813 complaints, with a reported loss amount of $781.8 million. In 2017, IC3 received 301,580 complaints, with a reported losses of $1.4 billion. Tracking the Trends IC3 tracks the latest trending scams each year. In 2017, Business Email Compromise (BEC), Ransomware, Tech Support Fraud, and Extortion topped the list. BEC, Confidence/Romance Fraud,…
  • Non-Profits – Easy Targets for Fraudsters

    May 1, 2018
    Caring Hands was a non-profit organization providing mental health care and substance abuse rehabilitation services in Pennsylvania. Ms. Graham, one of Caring Hands’ social workers, visited clients’ homes to provide social services for families and children. Ms. Graham would compile case notes and information for families and children and submit timesheets to Caring Hands; Caring Hands, in turn, would bill the Pennsylvania Medicaid program. Caring Hands’ IT department was testing employee data and found personnel records for Ms. Graham did…
  • Inventory 101

    April 26, 2018
    When a company’s inventory count comes up short, the hunt for the missing inventory begins. Are employees are stealing from the warehouse in the middle of the night? Is a dishonest bookkeeper recording fictitious purchases and pocketing the difference? Possibly. But while employee theft may be the reason, less nefarious causes might be to blame. Defining & Tracking Inventory Inventory can be defined as the raw materials, work-in-process products and finished goods considered to be the portion of a business's…
  • Whistleblower Hotlines: A Powerful Tool in the Fraud Prevention Toolbox

    January 16, 2018
    Tips are one of the most common fraud detection methods. In 2016, the Association of Certified Fraud Examiners analyzed more than 2,000 cases of occupational fraud in 114 countries. In approximately 39% of cases, the fraud was discovered by receiving a tip. Organizations with reporting hotlines are more likely to detect fraud than organizations without hotlines: 47% vs. 28%. Warren Buffett, chairman and CEO of Berkshire Hathaway, stated in 2005: Berkshire would be more valuable today if I had put…
  • The Face of Fraud

    November 30, 2017
    Crime tends to require three elements: motive, desire and opportunity. Employee theft is no different. Being aware of the reasons leading up to employee theft and learning to identify likely perpetrators can give employers a leg up on protecting their companies from theft. Motive & Desire Employees who steal usually have their motives. For example, Tom has been with the company for three years and is still making the same salary. He feels underpaid and undervalued. Becky just missed getting…
  • Home Sweet Home

    November 15, 2017
    Sunset Villas is a condominium complex with fifty units on the shores of Lake Michigan. Owners pay $550.00 a month in dues towards neighborhood and maintenance, including the upkeep of the pool and common areas. When the owners hired a property management company, they didn’t realize Sunset Villas was a tempting, lucrative target. Homeowners associations are often victims of misappropriation by property managers, due to having relatively large amounts of monies and lax, volunteer boards responsible for accounting and control. One…
  • Strengths and Weaknesses of P-Cards vs. Credit Cards

    May 3, 2016
    P-Cards offer certain conveniences organizations find appealing. However, the ease of use goes hand in hand with the ease of abuse. End-user organizations should weigh the balance of the potential benefits and pitfalls of P-Card use in order to detect, mitigate and prevent their abuse. The Good 1. Cost Savings The traditional procure-to-pay process is costly, often involving a requisition, purchase order, invoice and check payment regardless of the dollar amount of the purchase. The process cost of a $25.00 purchase is the same…
  • P-Cards: So Easy to use, So Easy to Abuse

    April 11, 2016
    Many companies consider P-Cards (Purchasing Cards) to be efficient for purchasing goods from vendors. P-Cards, also dubbed Procurement Cards (ProCards), Payment Cards or Purchase Cards, are essentially charge cards, similar to consumer credit cards. With the increased use of P-Cards in the corporate, educational and government sectors, in order to choose the P-Card best for the organization. The Basics A P-Card is a commercial card organizations can use to make electronic payments for business expenses, taking advantage of the existing credit card infrastructure. The organization…