Category: Fraud
Adopt a Senior Pet Month
November 14, 2023Every year we devote the month of November to the cause of adopting a senior pet. Adopting a pet, especially a senior pet, is a gift to be celebrated. Unfortunately, there are people who will take advantage of you if you are not careful. Be aware of the warning signs.POISON APPLE
October 18, 2023Dhrendra Prasad, formerly employed as a buyer for Apple’s global service supply chain, has been sentenced to three years in prison as of November 2022. While employed between the years of 2008 to 2018, Mr. Prasad admitted in his plea agreement that he defrauded his employer since 2011 by diverting funds to himself totaling $17 million. Two owners of the involved vendor companies were also charged in separate cases as part of the theft. Mr. Prasad admitted in his plea…GHOSTS, GOBLINS, WITCHES, THIEVES?
October 18, 2023In the spirit of the spooky season ghosts, goblins and witches come to mind, but one thing we do not think of is a thief. This was not the case for Mr. Ronald J. Bally. In 2019 Mr. Bally was convicted of stealing Halloween costumes valued at over $200,000.00 from the SpookShop. Mr. Bally began his employment with the SpookShop, a seller of Halloween costumes, in 2004. In 2012 he set up his own business selling Halloween costumes online. In…Three Strikes…You’re Out
June 23, 2023At 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.Travel Rewards: Hidden Misappropriation
June 23, 2023As a forensic accounting company, SDC frequently sees fidelity insurance claims involving the misappropriation of travel rewards or credit card points. With airlines and hotels offering loyalty programs that provide travel rewards or points, frequent business travelers can rack up a lot of points.World Bicycle Day on June 3: The Rising Concern In The Bicycle Industry
June 1, 2023Employee theft is a pressing issue that affects various industries, including the bicycle sector. While bicycles bring joy and convenience to many, they have unfortunately become a target for employee theft. The loss of valuable bicycles not only impacts businesses financially but also undermines customer trust and disrupts the cycling community. The bicycle industry has witnessed an increase in employee theft incidents in recent years. According to a report published by the National Bike Dealers Association (NBDA), employee theft accounted…Advanced Inventory Concepts
November 11, 2019A company files a claim contending a warehouse manager stole $450,000.00 in inventory. The manager, a long-time employee, was trusted with keys and alarm codes. He was able to enter the warehouse after hours and remove pallets of product. The company contends the theft occurred over a 12-year period. When confronted with an inventory loss claim, what do we do to test the reasonableness of missing inventory? The Rate of Theft A common, core concept involves evaluating an employee’s theft…The Computer Fraud and Abuse Act
March 4, 2019In 1986, U.S. Congress enacted the Computer Fraud and Abuse Act (CFAA), The CFAA was enacted to combat various types of “computer crime.” The Act criminalized, among other things, the act of intentionally accessing a computer without authorization. In 1986, this meant “hacking or trespassing into computer systems or data.” The CFAA has been expanded and amended multiple times, as legislators attempt to keep pace with rapid advancements in technology and ingenuity. Defining the Crime The CFAA criminalizes the following:…Unusual News
February 11, 2019Employee theft and employee dishonesty cases can follow similar patterns. Employees often steal merchandise, cash, or make personal purchases using company credit cards. But some cases stand out either because of the amount of loss or the method of misappropriation. Here are five over-the-top examples of in-house theft and employee fraud: The Jury Duty that Wouldn’t End Joseph Winstead, a Washington, D.C. postal worker, managed to steal $40,000.00 in unearned wages from the USPS over a total of 144 days.…Recent Ruling: Medidata Solutions, Inc. v. Federal Ins. Co.
November 7, 2018The 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.…