2016 Report to the Nations on Occupational Fraud and Abuse

2016 Report to the Nations on Occupational Fraud and Abuse

Now available for Asia Pacific Region

See:http://www.acfe.com/regional-reports/

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

Financial literacy is not always in keeping with a person's education level and no matter how clever, experienced or sophisticated we are, or think we are, we are all vulnerable to becoming a victim of fraud.  Fraudsters will still target you regardless of your IQ.

Read more at:

http://www.acfe.com/fraud-examiner.aspx?id=4294994668&mkt_tok=eyJpIjoiWkRNeE56QTRZelpsTkRkbCIsInQiOiJFUUsra3pEd2w2UUVTXC91RUtib1VHODgwalBzQ1lHS1BjT3Q2ZUhOblc4eG1TdjhSajNSWDJoUHEzMnRraTdvRFdwRnQ0ZkpIeUFiNlUrS1RCOTM4ZWN3aVFVRWFRSHJjcllVZ2xnbERHNzQ9In0%3D 

Wells Fargo, Volkswagon, Corporate Culture and Fraud

Volkswagen, sold 11 million allegedly less-polluting diesel vehicles worldwide equipped with hidden software to override pollution controls because of the pressure to make their vehicles 30% more efficient that their competitors....even though this wasn't technically possible.

Wells Fargo, widely known for its aggressive cross-selling of products has claimed the 5,300 perpetrators were “underperformers,” even though these employees were scattered across the organization and not connected thus a clear indicator of corporate culture at work. Meanwhile, on Reddit, former Wells Fargo employees batted around tales in great detail of the sales pressure they endured.

For more see http://www.forbes.com/sites/davidschrieberg1/2016/09/16/how-does-corporate-culture-fuel-fraud-start-with-volkswagen-and-wells-fargo/#34cf67052d64


And to appreciate the enormity of the Wells Fargo issue, see Senator Elizabeth Warren questioning Wells Fargo CEO John Stumpf at the Banking Committee Hearing  

https://www.youtube.com/watch?v=xJhkX74D10M

Transaction laundering hides in plain sight with all three stages of money laundering (placement, layering and integration) one step removed

.....transaction laundering — a form of money laundering .......sometimes also known as "factoring," transaction laundering occurs when legitimate merchants process payments for illicit purposes on behalf of another party....

FinCEN recently singled out transaction laundering as a variation on the standard themes of money laundering. But what's remarkable about transaction laundering is the sheer "hiding in plain sight" nature of this gambit.

Criminals and their associates understand the industry and know the types of businesses that are likely to evade enhanced front-end due diligence.

Read more at http://www.fraud-magazine.com/article.aspx?id=4294994349&mkt_tok=eyJpIjoiWldaa01tUmlPV1k0TlRNMyIsInQiOiJGVkxueDd4Y0t0T2VNMldzUnlFTkk1MTJcL1lJZEVVWlRCVFRhK1RZXC9aamJJN2RTS1dkZUFDWlNnNmx4Y3JYcTJTU0haZms3Y0hnaXF6SVh5SjZ5TnFlMDMzV20zSDdIQ2ZwN1FUUVNpNk8xXC9mN3grM2xqUk00Sk5aam01YjlyaCJ9

Indifference to Ethical Business Conduct is Death for Organisations, support is needed for whistleblowers

Most employees want to do the right thing, and organisations need to do what they can to help support and encourage employees to report. "Failures in employee reporting today can result in significant operational and reputational hurdles tomorrow," they explain. They encourage you to follow their tips to strengthen your reporting program so no top executive ever has to ask the question, "What went wrong?"

See:
https://acfeinsights.squarespace.com/acfe-insights/?category=Whistleblowing

One of the 'Big 4' faces 3 major trials that threaten its business

PricewaterhouseCoopers LLP, the U.S. member of the global professional-services giant, is currently facing not one, not two, but three significant trials for allegedly negligent audits. 

http://www.marketwatch.com/story/pwc-faces-three-major-trials-that-could-put-firm-out-of-business-2016-08-12?mkt_tok=eyJpIjoiTXpka1pUWmxaRGhrWlRJMCIsInQiOiJ4Vlp4Y01ZQldsanM1dnFQRFwvRDdhRG0zTG1BWDBcLzFIQTdTXC9TcldyRTlhRFRFYytcL0ZPcWhCZlJHMVRVODJjZlAyTGxUTUhhT25Xb1ZPTjhKNlA3SmhoQ3hTa1wvcmxqNzdwODgyMGJqRjFKOXhDWE5VeUxmUll5R3F5b25ZZzViIn0%3D

Key lessons from the Unaoil scandal for forensic email reviews - analysis using words!

Using code words in communication

Many of the leaked Unaoil emails and excerpts contain several code words referring to individuals, organizations, events and the contexts of the communication. Individuals are referred to as "Doctor," "Ivan," or "Lighthouse." Keywords can help disguise intent in communication. For example, bribers or bribe receivers (public officials) might not be red-flagged in email if they identify themselves by code name or keyword.

http://www.fraud-magazine.com/article.aspx?id=4294993345&mkt_tok=eyJpIjoiTVRBd05UWm1NelJrWldZNSIsInQiOiJqcDZpVGdTSEhYXC9ndkpoYTVLMkFYNmxoMmNpVFlYRjFsTzQyUndKTEJcL0FFWUNDdFQ2cHpkRUlCdzlmK3JwTlczNVNhVXZFQWU1NkRtSjdvOHZRSWZ3MWxaQlwvbFQ0R2NxdDhNM3lDQWxpaz0ifQ%3D%3D

The World's Biggest Bribe Scandal

In the list of the world's great companies, Unaoil is nowhere to be seen. But for the best part of the past two decades, the family business has systematically corrupted the global oil industry and there's an Australian connection. 

Read More at:
http://www.theage.com.au/interactive/2016/the-bribe-factory/day-1/the-company-that-bribed-the-world.html?mkt_tok=eyJpIjoiWWpRd09EWTNZMlZtTlRaaCIsInQiOiI1dTlmUEFOSmdmT0xzKzVMbTdQYUQ4eWl1SXFFRXl2QmpYSHBEV0NJN0pBclNEWFVIUWlTcWREaVZJZndMUWJrSUpjaVU4R29DWndKcThIZHhablhoUWlacDRUZGJ2VzdwNXdMRFVMMmtmOD0ifQ%3D%3D

Latest ACFE Fraud Report now available!

Analysis of 2,410 cases of occupational fraud that occurred in 114 countries throughout the world by ACFE.

Read More at:
http://www.acfe.com/rttn2016.aspx?mkt_tok=eyJpIjoiWWpRd09EWTNZMlZtTlRaaCIsInQiOiI1dTlmUEFOSmdmT0xzKzVMbTdQYUQ4eWl1SXFFRXl2QmpYSHBEV0NJN0pBclNEWFVIUWlTcWREaVZJZndMUWJrSUpjaVU4R29DWndKcThIZHhablhoUWlacDRUZGJ2VzdwNXdMRFVMMmtmOD0ifQ%3D%3D 

Workers warned to watch out for bogus requests from bosses to transfer money as one firm loses £18.5m

The scam, which sees criminals impersonate e-mail accounts of chief executives to trick staff into wiring payments to an overseas bank account, has cost firms around the globe $2billion – or £1.43billion – in the last two years, according to the US Federal Bureau of Investigation.

http://www.thisismoney.co.uk/money/saving/article-3471248/Beware-CEO-fraud-costing-British-businesses-millions.html?mkt_tok=3RkMMJWWfF9wsRoks6rMZKXonjHpfsX%2F7eokWLHr08Yy0EZ5VunJEUWy3IEISNQ%2FcOedCQkZHblFnVgJSq29RawNr6IE

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? Considering the countless scams and schemes that fraudsters use their devious, yet often very intellectual, minds to concoct and perpetrate, the answer might — or might not — come as a surprise.

Let’s find out which of our four “contestants” turns out to be the unlucky “winner.”


http://www.acfe.com/fraud-examiner.aspx?id=4294991840&mkt_tok=3RkMMJWWfF9wsRoks6zBZKXonjHpfsX%2F7eokWLHr08Yy0EZ5VunJEUWy3IEATdQ%2FcOedCQkZHblFnVgJSq29RawNr6IE