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Lim Huck Hai, CFE
Onetime runner and current golf enthusiast Lim Huck Hai, CFE, has considerable international executive management experience. He’s helped clients from both private and public sectors implement fraud prevention and regulatory measures and leads investigations guided by integrity and perseverance.
Written By: Anna Brahce
Under pressure
Generations that grew up with the internet aren’t immune to online fraud schemes. Trust in online platforms, heavy involvement in social media and financial pressures facing Gen Z and millennials put them at greater risk of being victimized by fraudsters than older adults. Fraud Magazine explores how younger generations become victims — and perpetrators — and what fraud examiners can do to educate them about fraud.
Written By: Crystal Zuzek, Anna Brahce
Investigating fraud and corruption in Bangladesh
In this second installment in our series on fraud examinations around the world, an anonymous complaint from an employee sparked an in-depth investigation into allegations of corruption in the bidding process for a large-scale infrastructure project in Bangladesh. The author recounts the intricacies of the case and provides invaluable insight into conducting fraud examinations in this developing country.
Written By: Radhika Vohra, CFE
Infiltrating the IT industry
Companies across the globe have unknowingly hired remote information technology workers acting on behalf of the Democratic People’s Republic of Korea (DPRK). Using stolen identities and gaining access to sensitive data, the workers illicitly generate revenue for the DPRK’s Weapons of Mass Destruction (WMD) and ballistic missiles programs (weapons program). The author breaks down elements of the scheme and provides tactics for organizations to avoid hiring bad actors.
Written By: Trisha Gangadeen, CFE
Detecting fraud without historical data
Datasets of documented fraud cases can be instrumental in detecting anomalies and patterns in all sorts of transactions, but many times those datasets aren’t available. With fraudsters perpetrating increasingly sophisticated schemes, fraud fighters need an edge on the criminals with advanced techniques. Here, the author describes how to use machine-learning models and other advanced techniques to detect fraud when you don’t have historical data to learn from.
Written By: Penny Li, CFE, CPA, Ning Ping Wang
Be alert to Medicare hospice fraud and new mobile job-offer cons, plus spot phishing scams
Creative scammers offer Medicare hospice services (to those who aren’t terminally ill). Beware of sophisticated job-offer frauds on mobile devices. And here’s how to spot pesky phishing scams.
Written By: Robert E. Holtfreter, Ph.D., CFE
Getting started as a forensic interviewer
Conducting a forensic interview for the first time can be a nerve-racking experience. But with the right tools and resources, you can obtain vital firsthand information from those with knowledge of an alleged crime.
Written By: Nicholas DiModica, CFE, CPA
Nations unite to wipe out telecom fraud centers and more
China, Myanmar and Thailand join forces to tackle telecom fraud centers operating in Myanmar; a woman in Texas pleads guilty to smuggling and distributing an unapproved, altered drug used to treat cats; the prison sentence of former Mozambique finance minister, Manuel Chang, is increased; and former U.S. Senator Bob Menendez is sentenced to 11 years in prison.
Written By: Crystal Zuzek
Statement on fraud risk and enforcement priorities in the U.S.
ACFE CEO John Warren, J.D., CFE, discusses the new presidential administration's policies and executive orders regarding anti-fraud laws and enforcement.
Written By: John Warren, J.D., CFE
In pursuit of justice
Through the Justice for Fraud Victims Project, college students obtain valuable real-world experience in the field of forensic accounting while aiding victims of fraud.
Written By: David Glodstein, DBA, CFE, CPA, Marie Rice, Ph.D., CFE, CIA
5 most scandalous fraud cases of 2024
Fraudsters work year-round to perpetrate their schemes. Fraud Magazine also works year-round tracking the news for those schemes we believe will live in infamy and serve as cases for anti-fraud professionals to study for years to come. Here are the most scandalous frauds of 2024.
Written By: Jennifer Liebman, CFE, Crystal Zuzek, Anna Brahce
Transience and transformation in the digital age
In 1995, the Association of Certified Fraud Examiners (ACFE) hired a young editor named Dick Carozza, CFE, to turn a newsletter into a magazine. It’s three decades later, and Fraud Magazine is set for another transformation. This is our last printed issue as we tackle a new assignment: delivering the latest fraud prevention and detection content in a digital-only format.
Written By: John D. Gill, J.D., CFE
Gabriella Marshall, CFE
Gabriella Marshall, CFE, major case consultant at Nationwide Insurance, discusses the benefits of earning the Certified Fraud Examiner credential, her professional background, her greatest achievement and more.
Written By: Anna Brahce
Behavioral analytics could’ve detected and prevented Evergrande fraud
The Evergrande Group, one of China’s largest property developers, recently went bankrupt and was liquidated because of excessive borrowing, mismanagement and alleged financial misreporting. In this column, the author conjectures that behavioral and data analytics could’ve gone a long way in detecting and preventing this scandal.
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Corporate teamwork’s impact on collective fraud participation
In any organization, tone at the top matters. Leaders who emphasize teamwork without building a strong ethical foundation risk creating an environment prone to collusive fraud. The author offers advice for mitigating collective rationalization and reducing the risk of collusive fraud within a corporation.
Written By: Frank S Perri, J.D., CFE, CPA
SEC, FBI, DOJ join forces to bust crypto fraudsters and more
The U.S. Securities and Exchange Commission (SEC), FBI and U.S. Department of Justice coordinated a large-scale takedown of fraudulent cryptocurrency firms involved in market manipulation.
Written By: Crystal Zuzek
Is account takeover taking over the fraud landscape?
Old password habits die hard, but clinging to your weak password might be the death of your account. The author examines the growing threat of account takeover and considers the effectiveness of the most common security practices.
Written By: Laura Harris, CFE
COVID test kits scam, hurricane recovery and charity scams, and AI email security gaps
U.S. citizens can receive free COVID tests again; beware of scammers who want to charge you. Fake charities are following the recent hurricane disasters. And fraudsters are using artificial intelligence to gain the upper hand to invade inboxes with sophisticated malicious emails.
Written By: Robert E. Holtfreter, Ph.D., CFE
Great transformations
Fraud Magazine has always been in a state of transformation, from its start as a simple newsletter to a glossy magazine. Now, the magazine is making another big change as a digital-only publication.
Written By: Jennifer Liebman, CFE
Who owns transaction and controls monitoring?
Who monitors and oversees high-risk transactions in your organization? In this article, I explore who owns transaction and controls monitoring for vendors, customers and employees.
Written By: Vincent M. Walden, CFE, CPA
He was a victim. Now he’s fighting back.
In 2021, Troy Gochenour became a victim of cryptocurrency fraud after striking up a correspondence with a scammer he met on a dating app. The Ohio-based voice actor talks to Fraud Magazine about his experience as a fraud victim and how it transformed him into an activist raising awareness and fighting against cyber scams.
Written By: Emily Homer, Ph.D., CFE
Cracking the center
According to the United Nations, an estimated 200,000 people have been trafficked into cyber scam centers where they’re forced to commit fraud schemes, causing billions of dollars in losses worldwide. Fraud Magazine talks to experts fighting on the frontlines against forced criminality about what it will take to disrupt these cyber scam operations and what fraud examiners can do to help.
Written By: Jennifer Liebman, CFE
Outsmarting fraud in the hospitality industry
With more people traveling and spending money on leisure following the COVID-19 pandemic, fraudsters are once again turning their attention to the hospitality industry. Here we look at the variety of fraud taking place in this sector and how best to prevent it.
Written By: Rasha Kassem, Ph.D., CFE
Check fraud hits home
Despite the diminishing use of checks in the U.S., check fraud is on the rise. The author recounts her own brush with attempted check fraud and highlights how businesses — large and small — can protect sensitive customer information.
Written By: Laura Harris, CFE
On a winning streak
Thousands of fraud examiners from around the globe flocked to Las Vegas, Nevada, where they hit the big time, gleaning deep insights and practical tools to combat fraud from an international cast of anti-fraud experts during the 35th Annual ACFE Global Fraud Conference.
Written By: Crystal Zuzek
Ready for the future
Members of the ACFE’s Board of Regents sat down with Fraud Magazine at the 35th Annual ACFE Global Fraud Conference in Las Vegas for a wide-ranging discussion about pandemic risk management, how AI is no substitute for human expertise and how important it is to attract new people to the anti-fraud profession.
Written By: ACFE Staff
Flexing instead of curtsying
Former CIA Chief of Disguise Jonna Mendez talks about concealing spies’ true identities as they ply their trade, rising through the ranks as a woman in a male-dominated field, and the important differences between fraud fighters and undercover agents.
Written By: Jennifer Liebman, CFE
Renewing strength in our purpose at the 35th Annual ACFE Global Fraud Conference
ACFE President John D. Gill, J.D., CFE, discusses the energizing effects of attending ACFE Annual Global Fraud Conferences, and in particular, the 35th Annual Global Fraud Conference held in Las Vegas, Nevada, in June.
Written By: John D. Gill, J.D., CFE
Developing the next generation of forensic accountants
As the accounting field braces itself for staff shortages, it’s now more important than ever to ensure that young fraud fighters are prepared to meet future challenges. Here, the author provides training techniques that he’s employed to train new employees and pass his wealth of knowledge on to the next generation.
Written By: Alexander Dokuchaev, CFE, CPA/ABV
Boeing admits to fraud over 737 Max jet crashes and more
Aviation giant Boeing pleads guilty to fraud over 737 Max jet crashes, the U.S. Supreme Court hands down big decisions on bribery and corruption, and Interpol coordinates an international law enforcement operation to dismantle online scam networks.
Written By: Crystal Zuzek
Falsely accused of fraud
Fraud investigators strive to reveal the truth, but sometimes people are falsely accused of fraud. Here, we examine cases of wrongful convictions with insights from Certified Fraud Examiners (CFEs) and other experts in the field to see why this happens and what mistakes to avoid during investigations.
Written By: Anna Brahce
Fraud investigations gone wrong
Failures in fraud investigations can hinder the pursuit of justice and the deterrence of fraudulent activities. The author examines two case studies that illustrate the immense impact that botched investigations can have on individuals, organizations and society.
Written By:
Natalie Lewis, CFE, CPA/CFF
At one time an aspiring artist, Association of Certified Fraud Examiners (ACFE) Board of Regents Chair Natalie Lewis, CFE, CPA/CFF, now investigates alleged employee embezzlement and business fund misappropriation schemes. She works to combat fraud locally and globally in her leadership positions for the City of Atlanta and the ACFE.
Written By: Anna Brahce
Toll-charge scam, five AI threats, CISA impersonation and reducing spam messages
Fraudsters pose as employees of toll road agencies and the U.S. Cybersecurity and Infrastructure Security Agency (CISA) to steal money and personal information from unsuspecting consumers. Also in this column, the author details how artificial intelligence is making it easier to commit cyberfraud, and how consumers can reduce the number of spam emails in their inboxes.
Written By: Robert E. Holtfreter, Ph.D., CFE
Monitoring and investigating human rights risk in the supply chain
Forced labor, an unfortunate reality in much of the world, may lie hidden (or in plain sight) in companies’ supply chains. Governments are taking notice, and CFEs have a key role to play in combating the problem.
Written By: Vincent M. Walden, CFE, CPA
Balancing fraud management and the customer experience
Forming solid relationships with customers while protecting them from fraud and financial loss is a constant balancing act for banks. The author details the steps involved in developing a strategy that puts customer protection at the center while providing a hassle-free customer experience.
Written By: Sophia Carlton, CFE
Everything is a priority in the Southern District of New York
Fraud Magazine examines how U.S. Attorney Damian Williams is leading the fight against financial fraud and public corruption from one of the most influential federal prosecutorial offices in the United States.
Written By: Jennifer Liebman, CFE
The not-so-friendly fight against ‘friendly fraud’
Whether you call it “friendly fraud” or a chargeback, refund fraud and abuse is on the rise and costing retailers billions. The author discusses what this fraud entails, what’s behind its growth and why this decidedly unfriendly scheme is so frustrating to fight.
Written By: Samuel May, CFE
Decoding AI and machine learning in banking
Whether you’re drawn into a case as a fraud examiner, an auditor, or a customer encountering identity fraud, understanding credit risk modeling within financial organizations is essential. This knowledge is crucial regardless of your role because it impacts how financial products, from bank accounts to mortgages and student loans, are managed and secured globally. Appreciating how financial institutions assess the risks tied to each customer — whether an individual or a corporation — is fundamental for anyone engaged with financial services. This understanding shapes how we perceive the safety and reliability of financial products that affect everyday financial decisions.
Written By: Britta Bohlinger
Fraud examiners anticipate future with generative AI, ACFE/SAS Report shows
Anti-fraud professionals across the globe expect generative artificial intelligence (AI) to be part of their fraud-fighting arsenals in the future, according to the 2024 Anti-Fraud Technology Benchmarking Report. In fact, an impressive 83% of respondents surveyed for the study anticipate that their organizations will add this technology to their anti-fraud initiatives over the next two years.
Written By: Rihonna Scoggins
Behind the blocks
Charlie Shrem was atop the cryptocurrency world as CEO of pioneering bitcoin exchange BitInstant when he was arrested for indirectly facilitating drug sales on the dark web. Now post-prison, Shrem talks to Fraud Magazine about his transformation into an evangelist for compliance and regulation in crypto and where he thinks the industry will go next.
Written By: Jason Zirkle, CFE
The irrevocable trust
In 2023, Christopher Linscott, CFE, CPA, CIRA, arranged a donation of $250,000 to the ACFE Foundation — the single largest donation to the foundation ever. Here’s the story of how a Ponzi scheme that bilked thousands of military veterans and retirees became the impetus for that donation.
Written By: Jennifer Liebman, CFE, Mandy Moody, CFE, Jala Attia, CFE
Playing fair
Football — the international sport, with strikers and goalkeepers — is beloved around the world, but in an intense game where professional teams compete for wins and financial survival, fraud is commonplace. Here’s a primer on the many schemes on and off the field and meaningful steps that football clubs and leagues could take to fight fraud in the sport.
Written By: Rasha Kassem, Ph.D., CFE
In Memoriam: Joseph W. Koletar, DPA, CFE, and three members join ACFE Board of Regents for 2024-2025
The ACFE remembers Joseph W. Koletar, DPA, CFE; Kimberly A. Howell, CFE, Maheswari G. Kanniah, CFE, and Robert J. Smolich, CFE, join the ACFE Board of Regents for 2024-2025; and the ACFE Board of Regents disciplines two members.
Written By: ACFE Staff
Develop a curiosity-driven workplace
Research shows that those with inquisitive minds seek novel solutions to unique challenges. Nowhere is this truer than in fraud investigations where curiosity and a healthy dose of skepticism are two sides of the same coin. Fraud investigators won’t detect many instances of financial deception if they don’t use curiosity as a problem-solving skill.
Written By: Donn LeVie, Jr., CFE
Checks continue to be an attractive vehicle for fraud
People might not be writing as many checks as they did in the past, but that hasn’t stopped fraudsters from pressing on with their schemes. The author examines why check fraud continues unabated even with the rise of noncash payment options.
Written By: Laura Harris, CFE
Amanda Malusky Krauss, CFE, CPA/CFF
Amanda Malusky Krauss’s passion for fighting fraud began early in her career when an employee of a firm she was auditing slipped her a note detailing a fraud committed by executives. Today, the lead for Axium Consulting’s internal investigations and forensic accounting practices says she’s driven to fight injustice and strives to always respect the humanity of the people she interviews.
Written By: Anna Brahce
Can generative AI give us prescriptive analytics?
One of four key types of analytics has long been considered a “pie-in-the-sky” concept for fraud investigators. Rather than describing or diagnosing something that’s happened or predicting what could happen, prescriptive analytics can tell us what we should do about it. With the growth of generative AI and large language models, it may just be in reach.
Written By: Vincent M. Walden, CFE, CPA
Defiant together
Jennifer Griffith, CFE, and Sarah Carver, CFE, spent years informing their superiors in the U.S. Social Security Administration office where they worked about an operation between a lawyer and an administrative law judge to fraudulently approve thousands of disability claims. But instead of rewarding them for uncovering a massive fraud, their bosses retaliated against them. Carver and Griffith talk to Fraud Magazine about their journey as whistleblowers and their courage to fight for the truth even when the odds were stacked against them.
Written By: Jennifer Liebman, CFE
Who’s liable in authorized push-payment schemes?
You probably send cash via Zelle, Venmo, Apple Pay or other mobile apps. But scammers are also using those apps to trick people into authorizing payments. Banks have traditionally balked at refunding victims, but that’s changing as the U.K. government implements the Payment Systems Regulator, and the U.S. government pressures financial institutions.
Written By: Sophia Carlton, CFE
Ukraine alleges $40 million defense procurement fraud and more
Ukraine accuses Ministry of Defense and arms supplier of $40 million fraud; hundreds of sub-postmasters in the U.K. falsely convicted by the U.K. Post Office; and ESPN staff members illicitly secure Emmys for "College GameDay" on-air personnel.
Written By: Anna Brahce
Case studies in culture
Conducting international investigations abroad requires adaptability and a willingness to learn new customs. The author, who’s conducted many overseas investigations throughout her career, details her experiences to demonstrate why understanding people and their cultures can vastly improve your investigations abroad.
Written By: Lourdes C Miranda, CFE
Fraud for sale
For many, the dark web conjures up images of poorly lit rooms where lone fraudsters scam victims behind the veil of encrypted messaging. But the reality is more akin to an open marketplace, like an Amazon for criminals — where they sell multiple fraud products and focus on branding, marketing and the bottom line. That may be frightening, but it also presents an opportunity for law enforcement. Here’s why.
Written By: Rihonna Scoggins
Is a third party’s use of encrypted email services a safeguard or a red flag?
Global organizations employ thousands of suppliers and vendors to get their business done, so they need to use the latest investigative tools of third-party due diligence (TPDD). Here we examine how we can use TPDD to discover how suspicious third parties can use email encryption services (and corresponding primary email addresses) to mask illegal activities and steal valuable data.
Written By: Antonio Rossi, CFE, Lucrezia Tunesi
Fraudsters steal pandemic cash in your name, infect business web gateways, and pilfer children’s health insurance money and PII
Fraudsters stole billions from U.S. federal COVID-19 loan programs. Now unsuspecting victims, who never applied for those loans, are receiving bills. Plus, business ‘NetScaler Gateways’ are attacked, and Medicaid children’s health insurance recipients are scammed.
Written By: Robert E. Holtfreter, Ph.D., CFE
Corrupt central bank governor allegedly helped push Lebanon’s economy off the cliff
Lebanon’s economy has collapsed, aided by corrupt monetary policy, embezzlement and illusory regulatory oversight. Here’s an analysis of Riad Salameh’s mismanagement of Banque du Liban during his three decades as its governor.
Written By: Fadi Makdessi, Rayan Mohamed, CFE
‘Cryptoqueen’ associate pleads guilty to money laundering and more
‘Cryptoqueen’ associate Irina Dilkinska pleads guilty to wire fraud and money laundering for her role in a pyramid scheme; the U.S. DOJ charges 21-year-old Matthew Bergwall with mail fraud; and British media company Virgin Media 02 launches a free beer for International Fraud Awareness Week.
Written By: Anna Brahce
Balancing the benefits and risks of member-owned credit cooperatives
Credit cooperative societies across the developing world have helped local communities gain vital access to financial systems. But this access comes with a downside. Fraud and other financial vulnerabilities can put members at risk. This is where fraud examiners step in and help protect these cooperatives against such risks.
Written By: Durgesh Pandey, Ph.D., CFE, FCA, Collins Wanderi, MBA, CFE, PGD (HRM)
Rasha Kassem, Ph.D., CFE
As a senior academic and researcher, Rasha Kassem seeks to mitigate fraud risks, improve methods of fighting fraud, and better understand why fraud criminals do what they do. She says that investigating fraud isn’t enough to stop it and urges fraud examiners to innovate and explore new techniques for prevention.
Written By: Jennifer Liebman, CFE
Breaking down data silos
The better the data, the better the insight. The better the insight, the better the results. In this issue, we explore how CFEs can help their organizations break down data silos to improve business transparency.
Written By: Vincent M. Walden, CFE, CPA
What’s that smell?
Commercial fragrances and perfumes are big business, and the multibillion-dollar industry attracts its fair share of dodgy practices and outright fraudulent activity. Here we look at the difference between knockoffs and counterfeit products, and why the big perfume houses have such difficulty protecting their brands.
Written By: Donn LeVie, Jr., CFE
A bad return on your money
Investors have been losing their money to scammers since ancient times, but the scale and the cost of investment fraud has only grown in a digital age that has made it easier for fraudsters to steal hard-earned savings. Here we look at some of the different types of investment fraud and the red flags to watch out for.
Written By: Susan Mangiero, Ph.D., CFE, CFA
All hoax and no cattle
Cody Easterday was a Washington state rancher and farmer with a sterling reputation. Then Tyson Foods discovered that for at least four years he sent fake invoices to that company, and another, for $244 million for the care and feeding of 265,000 head of cattle that didn’t exist. He pleaded guilty to wire fraud and is serving an 11-year sentence in federal prison. Here’s an analysis of the fraud from a prosecutor, investigators and fraud examiners.
Written By: Dick Carozza, CFE
Nine candidates selected for ACFE Board of Regents’ ballot
Nine candidates have been selected to compete for three positions on the 2024-2025 Board of Regents. Beginning Nov. 1 and ending Nov. 30, CFEs may vote online at ACFE.com/BORvoting for their selections to replace retiring Board of Regents members, Wendy Evans, CFE; Collins Wanderi, CFE; and Chrysti Ziegler, CFE. The newly elected Regents take office in February 2024 and will each serve two-year terms.
Written By: ACFE Staff
Crushing fraud in the U.K.
Fraud now accounts for more than 40% of all crime in the United Kingdom. Here we explore what’s behind this proliferation of fraud in England and Wales and what anti-fraud experts say the government must do to crush it.
Written By: Jennifer Liebman, CFE
Ford on fraud
Joseph L. Ford, CFE, has spent a lifetime fighting fraud, working his way up from file clerk at the FBI to holding the bureau’s No. 3 spot. After leaving the FBI, he served as Bank of the West’s chief security officer and eventually founded his own consulting firm. Here Ford speaks of his experiences investigating both large and small frauds and what we can learn from them.
Written By: Paul Kilby, CFE
Thinking caps on! Avoid scholarship fraud
Higher-education tuition is astronomical. Prospective students and their parents are looking in every corner for financial relief. But fraudsters are searching even harder for desperate victims. Don’t let your panic disable your due diligence. Here’s how to use your fraud examiner abilities to avoid these opportunists.
Written By: Cindy Greenman, Ph.D., CFE
Fraud affairs of the heart and more
Elderly victims in Australia lose half a million dollars in alleged romance scam; China and Myanmar join forces to crack down on cybercriminals targeting Chinese nationals; and risk management study reveals retailers are losing money in instances of friendly fraud.
Written By: Anna Brahce
Lourdes C. Miranda, CFE
Throughout her career investigating financial crimes — first in the CIA and FBI and now in the private sector — Lourdes Miranda found that understanding human behavior is instrumental to cracking cases. She now urges fellow CFEs to balance technology with human intelligence in their investigations and learn everything they can about cryptocurrency and blockchain.
Written By: Jennifer Liebman, CFE
Measure and monitor your fraud risk management program success
‘Tis the season to set company goals. As we wrap up 2023 and look to the new year, ponder this: What are some of the key performance indicators (KPIs) companies use to measure the effectiveness of their fraud risk management program? Here, we explore some leading examples of anti-fraud KPIs that drive business value.
Written By: Vincent M. Walden, CFE, CPA
The many facets of empathy
Empathy is the ability to understand other people’s emotions, values and behaviors. It was once believed to be too “wishy-washy” or submissive to be taken seriously as a valid approach for investigations or negotiations. But empathy is actually a highly valued dimension of interpersonal, communication and strategic competence that can help fraud examiners more easily obtain an admission of guilt from fraudsters and gain insight into their “why.”
Written By: Donn LeVie, Jr., CFE
Evading suspicion through political networking
Sam Bankman-Fried, Elizabeth Holmes and Bernard Madoff. What do they have in common? They apparently used their outsized social influence in their professional networks to illegally expand their bank accounts and prolong their crimes. Fraud fighters can’t also be duped by their wily ways.
Written By: Frank S Perri, J.D., CFE, CPA
Phishers use AI to bypass email security, fake life insurance policy scams and more
Phishing scams never disappeared; they’re just more sophisticated. Also reject letters promising millions from insurance policies. And beware of invoices for COVID-19 tests you never ordered.
Written By: Robert E. Holtfreter, Ph.D., CFE
Joseph R. Dervaes teaches fraud lessons and awards first scholarship named in his honor at PNW Chapter Annual Conference
ACFE Regent Emeritus Joseph R. Dervaes, CFE, gave his final presentation and awarded the Pacific Northwest Chapter’s scholarship, renamed in his honor, at the chapter’s first hybrid annual fraud conference and the latest edition of the Fraud Risk Management Guide helps fraud examiners keep apprised of the latest threats and the multiple ways they can tackle them.
Written By: Jennifer Liebman, CFE, Anna Brahce
Unfairly thrown in a Thai jail for 547 days
The over $4.5 billion theft from Malaysian sovereign wealth fund 1MDB is one of the world’s biggest-ever financial scams and a sad story as it deprived ordinary people in that country of vital resources. Xavier Justo talks about his nightmare experience exposing the fraudsters responsible for this massive theft and the lessons he’s learned along the way.
Written By: Paul Kilby, CFE
Poorly governed financial systems and fraud: It all starts with access
Access/identity control is a fundamental component of data security that dictates who’s allowed to access and use company information and resources. But organizations still lack the necessary protections, opening the door for fraudsters to exploit their systems. Here the authors examine the latest IT resources to keep such criminals at bay.
Written By:
Understanding the art of deception
Proving someone is lying, let alone getting them to confess, is difficult to say the least. Let’s face it, fraudsters are slippery characters and adept at the art of deception. Here David Lieberman, Ph.D., a psychotherapist and an expert in the field of human behavior, helps us understand the signs of deceit and how to get a confession.
Written By: Paul Kilby, CFE
This scheme is a load of manure and more
In California a man conducted a cow manure Ponzi scheme; a former Amazon manager is sentenced for stealing millions from the company; and fraudsters in India scam victims by posting fake business numbers online.
Written By: Anna Brahce
ACFE expresses gratitude to departing president
Incoming ACFE President John Gill, J.D., CFE expresses gratitude for outgoing ACFE President and CEO Bruce Dorris, J.D., CFE, CPA.
Written By: John D. Gill, J.D., CFE
Breaking records
Fraud examiners shattered Global Fraud Conference attendance records in Seattle, Washington, cementing ACFE’s hybrid virtual and in-person annual conference as a can’t-miss event. And keynote speakers shared their stories of investigating fraud and corruption and revealing the truth.
Written By: Jennifer Liebman, CFE
Out of sight, out of mind
The COVID-19 pandemic resulted in an increase in remote and hybrid work that has many managers concerned about declining productivity levels. Here we examine the latest buzzwords associated with the trend, how executives and employees are coping in this new environment, and whether “stealing time” is a fraudulent act.
Written By: Donn LeVie, Jr., CFE
The challenges of change
Members of the ACFE Board of Regents always bring a wealth of experience from their respective sectors. Here they impart their thoughts on an array of topics and the importance of continual learning in the ever-evolving anti-field field.
Written By: Paul Kilby, CFE
Mind blowing
Understanding ChatGPT and similar generative AI tools is critical for fraud examiners seeking to leverage this emerging technology. Here we explore the risks and the extraordinary potential of this new phenomenon.
Written By: Vincent M. Walden, CFE, CPA
ChatGPT AI voice cloning, plus fake income-tax refund scam
Don’t send in the clones! Fraudsters are using ChatGPT to replicate voices to pull off classic grandparent and family-emergency scams. And beware of this new fake income-tax refund scam.
Written By: Robert E. Holtfreter, Ph.D., CFE
ACFE Foundation awards Ritchie-Jennings Memorial Scholarship recipients $85,000 in funds for 2023–2024 term
The ACFE Foundation has awarded $85,000 in funds to the recipients of the 2023-2024 Ritchie-Jennings Memorial Scholarship. Twenty-three university students from across the U.S., Europe, Asia and Africa received scholarships ranging from $2,000 to $10,000 for demonstrating academic achievement in a fraud-related field of study and a desire to pursue a career in fraud examination or similar anti-fraud profession.
Written By: Anna Brahce
Detecting document fraud
Cases of document fraud, including check fraud, have exploded in recent years. The authors explain what’s behind the proliferation of this age-old scam and the modern technology CFEs can employ to stop it in its tracks.
Written By: Dustin J. Eaton, CFE, Theodore Colon, J.D.
Fraudsters fake diversity hires to win contracts and more
A Manhattan construction company fakes diversity hires to win government contracts; Jalisco drug cartel members scam elderly U.S. citizens with timeshare scam; and the U.K. government fights fraud with new investigative team.
Written By: Anna Brahce
M. Brian Reid, CFE
M. Brian Reid, CFE, says that in a parallel universe he might’ve been a nuclear physicist. But the CEO of Brison LLC applies the same passion he has for exploring the mysteries of the universe to examining the complexities of fraudsters and their schemes against his business clients.
Written By: Jennifer Liebman, CFE
Using geospatial tracking to shut down sanctions violators
The line between corporate crime and geopolitics has become increasingly blurred as the U.S. sanctions a broad range of bad actors across the globe. Organizations can quickly find themselves in violation of these rules. Here’s how fraud examiners can use one type of technology to prevent this fraudulent behavior.
Written By: Vincent M. Walden, CFE, CPA
The rise of employment scams in the digital age
As if finding gainful employment isn’t hard enough, job seekers now must be wary of scammers posting false advertising to steal their money and personally identifiable information. Here we look at why employment scams are on the rise and how to spot the red flags.
Written By: Mandy Yousif, CFE
Banks cratering because of poor risk management
Economic shifts, crypto deposits, weak controls and incompetent administration have led many tech-heavy banks to bite the dust this year. But none of the institutions’ C-suiters should’ve been caught flat-footed. Since the Great Depression, risk management has been the mantra of the money world. And we know that complacency and hubris can lead to fraud. Here’s how the bank collapsed and reminders for organizations to get it right.
Written By: Mary Breslin, CFE, CIA
On the brink of collapse
At 2:07 p.m. on Friday, Nov. 22, 1963, the New York Stock Exchange (NYSE) halted trading shortly after news broke that U.S. President John F. Kennedy had been fatally shot. The market had been on a downward slide, losing $11 billion in capitalization in the previous seven minutes. But hours before Kennedy’s assassination, NYSE president G. Keith Funston was doing all he could to prevent a potential market crash as one of the largest futures commodities scandals of the 20th century started to unravel.
Written By: Donn LeVie, Jr., CFE
CFEs should consider trade compliance as a profession
Trade compliance professionals help protect companies, but they also play a role in safeguarding national and global security. This emerging field offers exciting career opportunities for CFEs whose skill sets are a great match for companies that need professionals who can prevent and detect trade violations that threaten real harm.
Written By:
Fact finder
Michael Horowitz, the inspector general of the U.S. Department of Justice, has earned a reputation as a straight shooter and an adept investigator. He talks about his latest role as chair of the Pandemic Response Accountability Committee, mistakes made during the disbursement of COVID-relief money, how to avoid a repeat performance of the resulting fraud fiasco and the importance of strictly sticking to the facts.
Written By: Paul Kilby, CFE
Overcoming implicit bias in anti-fraud investigations
Everyone has personal biases, but letting these biases color our views of a suspect can affect the integrity of fraud investigations. Here we explain what unconscious biases are and what fraud examiners can do to overcome them.
Written By: Kate Pospisil, CFE
Gold standard for inspectors general
ACFE President and CEO Bruce Dorris, J.D., CFE, CPA, praises Cressey Award winner Michael Horowitz's achievements in detecting and preventing fraud in his role as inspector general and chair of the Pandemic Response Accountability Committee (PRAC).
Written By: Bruce Dorris, J.D., CFE, CPA
Discount fraud
Sales of “gray market” products generally are viewed as legal, but diversion of deeply discounted products from authorized distribution networks is often based upon fraud. Here we examine schemes to illicitly obtain millions of dollars of discounts through this pervasive but relatively unknown type of fraud. And we offer ways to ward off fraudsters’ efforts.
Written By: Daniel Mascaro, CFE
Food fraud and more
Fraudsters are using dilutions, substitution, counterfeits and mislabeling to infiltrate the global food market; a software engineer in Washington steals from his employer in a scheme inspired by the comedy movie "Office Space"; executives in South Korea are convicted in a $1.5 billion V Global scam.
Written By: Anna Brahce
From many, comes one (algorithm)
Recent anticorruption research shows that when companies collaborate to share information about third-party payments and high-risk transactions, they have a 25% greater chance of predicting improper payments than when each company’s model is performed in isolation. A new data-sharing consortium led by a nonprofit at MIT is working to make such collaboration possible.
Written By: Vincent M. Walden, CFE, CPA
Lender beware
When inflation skyrockets, central banks increase interest rates to slow spending. Here, the author details why periods of high inflation might lead to high rates of fraud in the lending industry and what lenders can do about it.
Written By: Justin Davis, CFE
Fraud in reconstruction: What awaits Ukraine?
When countries devastated by war, natural disasters or other calamities must rebuild, valiant efforts to rise from the rubble must be paired with another intangible quality: integrity. But prior experience with hastened economic relief underscores the need to couple that relief with a fortifying effort to deter corruption.
Written By: Latesha Love-Grayer, CFE
Blind faith
ACFE President and CEO Bruce Dorris, J.D., CFE, CPA, reflects on the lack of oversight and controls that led to the fall of FTX and the importance for CFEs to prevent and detect fraud in the growing cryptocurrency market.
Written By: Bruce Dorris, J.D., CFE, CPA
Treating fraud in independent pharmacies
In 2020, the U.S. Department of Justice (DOJ), in its largest health care fraud enforcement action to date, indicted 345 various health care professionals for submitting $6 billion worth of fraudulent claims to federal programs and private insurers. Among those ensnared in the takedown were pharmacies, which were accused of scheming with telemedicine entities and other licensed health care providers to purchase unnecessary medical equipment and prescription pain medications in exchange for illegal kickbacks and bribes, as well as the illegal distribution of opioid drugs. (See “National Health Care Fraud and Opioid Takedown Results in Charges Against 345 Defendants Responsible for More than $6 Billion in Alleged Fraud Losses,” U.S. Department of Justice, press release, Sept. 30, 2020.)
Written By: Meghan Sebaugh, CFE
CFEs have the edge in pay, high work satisfaction, 2022 Compensation Guide shows
Certified Fraud Examiners (CFEs) earn 17% more than their non-certified counterparts, and 62% report being happy on the job. These are just a few of the insights from the Association of Certified Fraud Examiner’s (ACFE) 2022 Compensation Guide for Anti-Fraud Professionals, which also revealed a slow trend toward gender diversity in the anti-fraud profession and changing workplace habits since the COVID-19 pandemic.
Written By: Jennifer Liebman, CFE
Better together
When sailing, mariners must always know the wind’s direction and mind their points of sail — a boat’s course relative to the wind. Sails can’t catch the wind in what is known as the no-go zone, approximately 45 degrees on either side of the wind’s direction. But sailing close-hauled, or as close to the wind as possible, mobilizes sails. (See “What is Sailing Close to the Wind?” Life of Sailing.) Indeed, sailing requires working with the wind to move ahead. Managing fraud risk and investigations is a similar process: Just as the mariner works with the wind, collaboration among teams of experts is the best way to propel forward. When people come together and share their expertise, they can truly succeed.
Written By: Raina Verma, CFE
Preventing fraud through due diligence
In March 2019, former New York Lt. Gov. Brian Benjamin, at the time a state senator, asked a real estate developer to help procure a number of small-dollar contributions for his latest political campaign. Benjamin’s unnamed contact, who also led a nonprofit organization, later told investigators from the U.S. Department of Justice (DOJ) that he initially rebuffed Benjamin’s request for several reasons: He didn’t have experience “bundling political contributions” in that manner; he was focused on fundraising for his own nonprofit; and any potential donors he could target were the same ones from whom he intended to solicit contributions for the nonprofit.
Written By: Mandy Yousif, CFE
A house of cards and more
In the U.K., a man is arrested for attempting to sell a house he was renting; tech workers in Southeast Asia are conned into working for cybercrime rings; a 58-year-old woman receives a prison sentence for heading one of the biggest marriage fraud conspiracies in U.S. history.
Written By: Anna Brahce
Kathryn Wilson, CFE
Kathryn Wilson, CFE, learned in high school that accounting encompasses so much more than crunching numbers — it’s also about following the money. And accounting isn’t just a job for Wilson, who conducts risk assessments and devises ways to prevent fraud as a senior manager in CohnReznick’s government and public-sector group; it’s also a family affair with her two brothers and late grandfather in the profession.
Written By: Jennifer Liebman, CFE
Build it right, and they will come
Today’s world is fraught with geopolitical sanctions, fraud, corruption and cyber warfare, and fueled by rapidly emerging technologies that continue to change how we approach business and risk mitigation. Companies large and small are enduring a costly, but necessary, shift to digital, while transitioning operations to the cloud and scrambling to protect their systems from intrusion. With change comes risks, which is why companies often look to anti-fraud and/or forensic technology professionals to help them build the preventive and detective anti-fraud controls needed to protect their business and align with regulatory expectations.
Written By: Vincent M. Walden, CFE, CPA
Use advanced tools to fight Medicare fraud
Fraud, waste and abuse emerge in most areas. But, theoretically, the health care system is where most people should least expect them. Of course, fraud has long been a problem in this sector. And most recently Medicare Advantage — the private-sector arm of the U.S. national health system for elderly Americans — and the insurers that manage it have come under intense scrutiny for allegedly submitting false diagnosis codes to inflate payments from the government.
Written By: Bruce Dorris, J.D., CFE, CPA
Catching health care fraud with statistical graphics
Inflating codes that determine how much Medicare and Medicaid pay to health care providers is common practice among fraudsters. Now they’re doing it in increasingly sophisticated ways. Here we examine how statistical graphics can help spot upcoding in what can be an arcane and complicated billing process.
Written By: Terry Allen, Ph.D., William McBee, CFE, LPI
A matter of trust
Stories of criminals hiding ill-gotten gains in offshore trusts have become all too common. But a new age of transparency has begun as governments look to lift the veil covering this secretive world. Here we examine the history of offshore trusts and how fraudsters have gamed the system to their advantage.
Written By: Leonidas Charitos
Pirates of the North Atlantic
Commercial fisherman, Carlos Rafael, known as “the Codfather” in New Bedford, Massachusetts, spent years selling thousands of pounds of misrepresented catch under the table for cash, laundered his money and overvalued his business to the IRS, among other crimes. His illegal monopoly predated well-intentioned conservation efforts of governments and citizen groups that inadvertently might have created an environment ripe for fraudulent fishing and reporting activities.
Written By: Donn LeVie, Jr., CFE
Stanch the flow
Fraudsters have stolen an unprecedented amount of U.S. COVID-19 relief funds — possibly more than the GDPs of many world economies. But millions of dollars had already been streaming from government programs long before the pandemic, and those cases hold valuable lessons. Here’s how to stanch the flow of money from vulnerable agencies.
Written By: Linda Miller, Joe Abeska, Zachary Rosenfeld, Taylor Larimore, CFE
ACFE Foundation’s Ritchie-Jennings Memorial Scholarship awards students $56,000 in funds for 2022-2023 term
2022-2023 Ritchie-Jennings Memorial Scholarship winners.
Written By: Jennifer Liebman, CFE
The attorney as fraud investigator
Choosing an investigator with the right skill set is key to successfully resolving a fraud case. An attorney is often best suited for the role but not always. Here we look at the pros and cons of using someone with a legal background to investigate fraud and the challenges of wearing two hats.
Written By: J. Cameron Thurber, J.D., CFE
CFEs make significant advancements over past 10 years, 2022 Report to the Nations shows
The ACFE's 2022 survey of CFEs around the world and the occupational frauds they have detected and investigated
Written By: Jennifer Liebman, CFE
Netflix and fraud and more
Netflix investors sue the streaming service for securities fraud; Spanish police crack a luxury car scam; Lincoln College shuts down in part because of a ransomware attack.
Written By: Jennifer Liebman, CFE
Sowing the seeds of success
ACFE President and CEO Bruce Dorris, J.D., CFE, CPA, discusses Cressey Award winner, Tony Kwok and his success fighting corruption in Hong Kong. Kwok was the deputy commissioner of Hong Kong's anti-graft agency, the Independent Commission Against Corruption (ICAC). Dorris also discusses the growing problem of corruption all over the world.
Written By: Bruce Dorris, J.D., CFE, CPA
Kenneth Boey, CFE
As a child, Kenneth Boey read mystery novels and dreamed of fighting crime as a police officer. Now, Boey is a full-fledged fraud fighter, ensuring that his company, Etiqa Insurance, has strong controls in place to protect its systems from threats.
Written By: Jennifer Liebman, CFE
Building an AI-focused anti-fraud company
Artificial intelligence (AI) is changing how businesses run — especially in anti-fraud and compliance. Here we describe how to build an AI-focused, anti-fraud technology company and what mindsets, strategies and tactics work well for organizations and entrepreneurs.
Written By: Vincent M. Walden, CFE, CPA
It's not all about money
When a cybercriminal breaches an organization’s data and financial systems, management automatically begins investigating the culprit’s financial motives. But often hackers are just curious to see if they can invade mainframes. Or they’re bored and want to have some fun. Here’s how to investigate cybercriminals’ minds, understand their nuanced purposes and then prevent more breaches.
Written By: Rasha Kassem, Ph.D., CFE
Promises and pitfalls
Amid the current enthusiasm for all things crypto, interest in decentralized finance (DeFi) has exploded. Proponents think it will help democratize finance. But fraud is running rampant in this corner of the market. Here’s how it works and why fraud examiners should be paying attention.
Written By: Paul Kilby, CFE
Beware of social media takeovers and compromised credit reports
It seems like identity thieves never sleep. Now they want to imitate your friends and hack into your social media accounts. And they want to compromise your credit scores. Here’s how to protect yourself and your loved ones.
Written By: Robert E. Holtfreter, Ph.D., CFE
Billing fraud — a bird’s-eye view
Billing fraud may not capture all the big headlines, but it’s pervasive, hard to detect and has been growing since the outbreak of the COVID-19 pandemic. Here are some recent case studies and a bird’s-eye view of how and why this type of fraud thrives.
Written By: Rick Roybal, CFE
Facilitator, moderator or mediator
We’ve all been in meetings where prominent issues needed resolution, but after a couple of hours, the team made little or no progress. A neutral, third-party facilitator, moderator or mediator can help run meetings more efficiently and navigate all parties to desirable outcomes.
Written By: Donn LeVie, Jr., CFE
Fighting the good fight
Tony Kwok knows a lot about corruption and how to fight it. He was the former deputy commissioner of the Independent Commission Against Corruption, Hong Kong’s ace anti-graft agency. He talks to Fraud Magazine about how it changed the city forever and what he’s doing now to help other countries fight fraud and corruption.
Written By: Paul Kilby, CFE
Fighting fake identities
Fraudsters create identities from bits and pieces of fictitious or stolen personally identifiable information. The U.S. Federal Reserve provides a one-stop online toolkit with downloadable resources to help educate financial institutions and other businesses about synthetic identity fraud and how to protect themselves.
Written By: Mike Timoney, CFE
Julie Aydlott, CFE
While conducting forensic and fraud examinations involving small organizations, Julie Aydlott saw just how devastating fraud could be for businesses with limited resources. Aydlott and a colleague founded Business Fraud Prevention, Inc., a nonprofit dedicated to providing free training and resources to help small business owners implement internal controls and fight fraud.
Written By: Jennifer Liebman, CFE
Organizations race to adopt new anti-fraud technologies after slow start, ACFE/SAS technology report shows
The ACFE and SAS release their 2022 Anti-Fraud Technology Benchmarking Report; nominations open for the 2023-2024 Board of Regents
Written By: Jennifer Liebman, CFE
Fraudsters, fakes and flaws
Alex Gibney’s documentaries have covered some of the biggest frauds of our times. The award-winning director talks to us about what he’s learned about the psychology of corporate fraud and more. It might not be what you expect.
Written By: Paul Kilby, CFE
Managing troubled projects
During their careers, fraud examiners will inevitably run into major problems on a high-profile project such as a forensic investigation. Human interaction can be a messy affair and often a major hindrance in project management. Here are tips to minimize cognitive bias and other psychological pitfalls that sabotage the best-laid plans.
Written By: Donn LeVie, Jr., CFE
Clobbering cyberfraudsters
Rachel Wilson was a cybersecurity expert before the broader world was even aware of such threats. The former head of the U.S. National Security Agency’s cyber exploitation operations now works to protect Morgan Stanley’s wealth management clients and systems. She talks to us about the latest dangers lurking in cyberspace and much more.
Written By: Paul Kilby, CFE
Strength in diversity
The U.S. Small Business Administration’s Office of the Inspector General faced unprecedented challenges during the COVID-19 pandemic, but a diverse staff was able to weather the storm. Inspector General Hannibal Ware details how his organization built a diverse workforce able to withstand tough times and how other organizations can do the same.
Written By: Hannibal "Mike" Ware, CFE
Documenting corporate deceit
Alex Gibney has documented many fraud cases in his three decades as a filmmaker. From his first big hit in 2005, “Enron: The Smartest Guys in the Room,” to the more recent documentary about Elizabeth Holmes, “The Inventor: Out for Blood in Silicon Valley,” Gibney has long been exploring the psychology of deceit and why bright and talented people turn to the dark side.
Written By: Bruce Dorris, J.D., CFE, CPA
Beware tax preparer and charity scams, plus unemployment insurance benefits fraud
Fraudsters continue to harvest PII by targeting professional tax preparers, compassionate givers and COVID unemployment insurance benefits money.
Written By: Robert E. Holtfreter, Ph.D., CFE
Inside job
While external fraudsters who absconded with billions of dollars in pandemic relief have dominated headlines, less attention has been paid to employees scamming those very same programs. Here we spotlight internal fraud at state agencies and what organizations can do to fight this pernicious type of fraud.
Written By: Suzanne Carlson, Sophia Carlton, CFE
The seven wonders of fraud detection analytics
Fraud is constantly evolving. So too should our technologies for detecting and preventing it. Inspired by the Seven Wonders of the World, I present my seven favorite anti-fraud techniques. Some have been in use for over a decade, some are new and evolving — but all of them are “wonderful.”
Written By: Vincent M. Walden, CFE, CPA
Bankruptcy fraud, which lessened during the pandemic, could increase this year
U.S. bankruptcies — and bankruptcy fraud — greatly decreased during the pandemic because of temporary lifelines. But as government stimulus, pliant lenders, and cheap and easy funding dissipates, we’re seeing crimes rise. Changes in U.S. federal bankruptcy law could accelerate prosecution of bankruptcy fraud.
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Former Czech prime minister indicted; will stand trial for fraud and more
The former Czech prime minister is indicted for fraud; A Wisconsin dentist breaks his patients' teeth as part of an insurance fraud scheme; The U.S. Department of Justice appoints a chief prosecutor to handle pandemic fraud.
Written By: Jennifer Liebman, CFE
Fraud infecting commercial-loan agreements
Commercial-loan agreements can pressure borrowers and lenders to cross the line to avoid bankruptcy or fleece customers. Here are some common fraud schemes that desperate parties can use in this cat-and-mouse game.
Written By: Roger W. Stone, CFE, Philip Duffy
Blowing the whistle
Countries across the world are increasingly recognizing the importance of whistleblowers in the fight against corruption and fraud. Here’s some useful background for CFEs wanting to know about the latest whistleblower protections and legislation.
Written By: Tom Caulfield, CFE, CIG, CIGI, Sheryl Goodman
Cat and mouse
Digital fraud has surged as the COVID-19 pandemic only accelerated the use of computers and cell phones for everything from banking to shopping. Here’s the latest on the evolving threat landscape and what CFEs and security experts are doing to stop cybercrime.
Written By: Kevin M. Alvero, CFE
Mirage buildings
Deficient due diligence during the pandemic has allowed real estate investment schemes to proliferate amid a boom in property prices. Consulting fraud examiners and those who work for potential investors and financial institutions can help prevent these extravagant frauds.
Written By: Joel Cohen, CFE, Ferve Khan, Esq., Camille C. Bent, Esq., Michael A. Sabella, Esq.
Green gremlins
Having an environmental, social and governance strategy has become all-important for companies. But as criticism over misleading and fraudulent claims grow, regulators are clamping down and pushing to clarify ESG disclosure rules. As they do in financial reporting, CFEs will have a big role to play in this hot but nascent corner of the market.
Written By: Paul Kilby, CFE
Monica Meeks, CFE
Monica Meeks is a U.S. Army veteran and veteran fraud investigator who first honed her fraud-fighting skills as a service member probing credit card fraud committed by Army officials. Now the financial services investigator for the Tennessee Department of Commerce and Insurance, she shares lifelong lessons with students and fellow veterans, educating them about fraud and the value of earning the CFE credential.
Written By: Jennifer Liebman, CFE
Wirecard's sentinel helps trigger anti-fraud regulations
The ACFE honors Pav Gill as the Wirecard whistleblower.
Written By: Bruce Dorris, J.D., CFE, CPA
Banish ‘comfortable inaction’
Most organizations need vendors to conduct business, but they’re often lax in investigating firms before they use their services. Here are tips for vetting your vendors and avoiding serious fraud problems.
Written By: Joseph M. Palmar, CFE, CPA/CFF
5 most scandalous fraud cases of 2021
Each year always brings a fresh array of fraud-related scandals, and 2021 was no different. The massive theft of COVID-relief funds continued to play out, but other notable schemes hit the headlines. Here we list the most scandalous of the lot.
Written By: Jennifer Liebman, CFE
Golden opportunities
Tom Golden’s latest thriller is not only entertaining but it’s also a handy case study of a fraud investigation. The veteran fraud investigator and forensic accountant talks to us about what he’s learned, how the ACFE made all the difference to his illustrious career and why we need more CFEs.
Written By: Paul Kilby, CFE
Fraud's fertile breeding ground
Any economic disruption leaves businesses vulnerable to fraud both from within and outside an organization. Here we look at how today’s bottlenecks along global supply chains are creating the potential for financial wrongdoing in the coming months and what fraud examiners and auditors should know to prevent it.
Written By: Stephen Pedneault, CFE, CPA/CFF
Attack bid-rigging, price fixing and other collusion frauds
Price-fixing, bid-rigging and allocation agreements are conspiracies you should always be looking for. These experts in illegal and anti-competitive collusion show you how to detect red flags and prevent these crimes. And they give you tips on how to leverage data analysis and cross-border cooperation.
Written By: Casey Buffalini, CFE, Helen Christodoulou, Esq., Milosz Gudzowski, Esq., Sandra Talbott, Esq.
Fraud risk in a cryptocurrency world
Businesses and consumers across the globe are quickly adopting cryptocurrencies in daily transactions. And many organizations are scrambling to catch up with this evolving technological innovation. Here’s an update on this new means of exchange, key fraud risks and how CFEs can help with the responsible adoption of crypto.
Written By: Vince M. Walden, CFE, CPA
Agents of change
Over the past 20 years or so, Africa has seen an exponential growth in anti-corruption agencies as governments across the continent seek to fight what’s still considered to be an endemic problem. Here we look at the history behind ACAs, some case studies and how CFEs can assist in these efforts.
Written By: Mohammed V.S. Ashraf Khan, CFE
Michael Pocalyko, CFE
Michael Pocalyko found his passion for fighting fraud when a troubled public company asked him to join its board as a fixer. Since then, the CEO of SI — a Washington D.C.-based intelligence and cyber-sector professional services company — has investigated numerous cases involving governments, corporations, executive misconduct and board-level improprieties. Pocalyko warns that fraudsters are more sophisticated than ever before and to anticipate fraudsters’ creativity.
Written By: Jennifer Liebman, CFE
Fraudsters misuse the area code 833 to steal PII
In North America, toll-free phone numbers have one of the area codes 800, 844, 855 and several others, including 833. Fraudsters have seized that last area code to entice would-be victims to divulge personally identifiable information. Also, here’s information on a new COVID-19 scam and a gift-card fraud that purportedly involves your boss.
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Bribery and corruption risks in acquisitions
Amid a surge in global mergers and acquisitions, regulators are increasingly holding organizations responsible for the bribery, corruption and fraud found at the entities they purchase. Data analytics is becoming an important tool in a due diligence process that’s more important than ever for companies seeking to avoid such risks.
Written By: Josh Cox, CFE
Preparing for a post-pandemic fraud landscape
The COVID-19 pandemic has created a host of public health crises — and unearthed more opportunities for fraud. Scammers and fraudsters are waiting in the wings to capitalize on lax controls and vulnerable public assistance programs. Here the authors cover ways to enrich and strengthen your organization’s fraud risk management program to reduce threats from bad actors and to help spot the red flags of criminal activity.
Written By: Linda Miller, James Ruotolo, CFE
Timothy Pikas, CFE
Timothy Pikas has spent his career fighting fraud on behalf of various U.S. governmental agencies, including the Air Force Office of Special Investigations, the Nuclear Regulatory Commission and the Department of the Interior. Along the way, the 2021 Certified Fraud Examiner of the Year learned that a solid fraud case takes time to build, and he counsels fellow CFEs to keep the faith and remain patient when conducting their own fraud examinations.
Written By: Jennifer Liebman, CFE
Case of the empty crates
Fraudulent use of letters of credit has run rampant in Libya amid a chaotic civil war. We look at cases in this opaque corner of the trade finance market to better understand how fraudsters are exploiting a financial instrument that helps drive global trade but also opens doors for wrongdoing.
Written By: Milind Tiwari, CFE
No truce in cyberwars
With people increasingly living their lives online, fraudsters have never had easier access to potential victims. COVID-19 has only accelerated that trend. Indeed, business is booming for cybercriminals now focused on high-value organizations. Fraud Magazine talks to cyber expert Robert Herjavec and CFEs about how best to tackle this ever-evolving threat.
Written By: Paul Kilby, CFE
Phony drug rehab facilities addicted to fraud
When the U.S. Affordable Care Act was enacted in 2010, the for-profit drug rehab industry was essentially given a blank check to treat people struggling with addiction. In the decade since, many of these underregulated businesses — rife with fraud, waste and abuse — have commoditized addicts. Through the lens of a recent high-profile criminal case in California, here’s the background on the issue, and some advice from experts on how to combat this unique type of provider fraud.
Written By: Jason Zirkle, CFE
Collegiate online cheating, a predictable result of COVID-19, may threaten the workplace
Cheating in online higher-ed classes existed long before the pandemic. Not surprisingly, exam fraud burgeoned when COVID forced most students to work in isolation. CFEs should consider how to minimize the chances for college cheaters to become occupational fraudsters and so limit negative effects for workplaces.
Written By: Carolyn Conn, Ph.D., CFE, CPA, Zachary M. Kelley
Revamp controls now to battle burgeoning synthetic ID fraud
Fraudsters combine stolen personally identifiable information from many different individuals to create dangerous Frankenstein identities. Guard against this growing insidious fraud and protect the IDs of your customers.
Written By: Kevin M. Alvero, CFE
Running a marathon at a sprinter's pace
The U.S. Congress has approved a record $5 trillion in aid packages so far to help Americans survive the pandemic, opening up new territory for fraudsters to ply their trade. Fraud Magazine talks to two of the top professionals leading the government’s fight against fraud and finds out why CFEs are required more than ever.
Written By: Paul Kilby, CFE
Managing insider-fraud risks in a pandemic
Insider-fraud risks are on the rise as the economic and psychological fallout from the COVID-19 pandemic takes its toll on organizations and their employees. Understanding these risks and knowing how to manage them will be an important part of many CFEs’ jobs.
Written By: Rasha Kassem, Ph.D., CFE
Arpinder Singh, CFE
Arpinder Singh, CFE, got his start investigating fraud when he discovered the field of forensic accountancy just as India’s economy took off following sweeping reforms in the early 1990s. Forensics proved to be an excellent career choice as corporate India increasingly focused on governance issues, including fraud detection and prevention.
Written By: Paul Kilby, CFE
Is a U.K. version of SOX compliance on the horizon?
The U.S. Sarbanes-Oxley Act of 2002 mandated strict reforms to existing securities regulations and imposed tough new penalties on lawbreakers. The U.K. might soon adopt similar legislation, which could significantly change board responsibility for fraud risk management and increase demand for anti-fraud professionals.
Written By: Vincent M. Walden, CFE, CPA
EFIN tax scam, selecting reputable tax preparers, weather-related scams
Unusual circumstances open opportunities for fraudsters, and 2021 is no exception. Not only has an uptick in online tax filings during the pandemic spurred new ways to cheat Americans out of their refunds, but utility scams related to winter deep-freezes are on the rise. Here’s what you should do to protect yourself.
Written By: Robert E. Holtfreter, Ph.D., CFE
The case of Little Bo Peep: The jailhouse employee
When employment circumstances change and pressures mount, criminals might disguise red flags of misbehavior. Because past actions can be a useful indicator of future behavior, background checks provide a snapshot of an applicant’s criminal, credit and employment history. Here we discuss the importance of background checks and how to properly vet your applicants.
Written By: Theresa Hicks, CFE
Wasted opportunities: Find and investigate waste now
Investigators and auditors spend hours looking for fraud and abuse but often overlook the third bad boy: waste. Fraud is flashy, and abuse is sinister. But waste often gets a short shrift. These CFEs encourage us to look for waste so we can save our organizations millions during these lean times.
Written By: Brian Molloy, J.D., CFE, Temitope Eletu-Obido, CFE
CFEs can be medical practices' best friends
Most medical office practices trust their employees to handle daily financial matters. But what do they do when they catch long-term, trusted employees stealing? Here’s information you can use if you might be looking for medical-practice fraud detection and prevention business, and want to help doctors mitigate losses and claim restitution.
Written By: Belinda M. Kitos, CFE
Caring for the CARES Act: What comes next?
SIGPR, the U.S. office mandated to audit and investigate fraud and abuse of the $2 trillion COVID-19 aid package known as the CARES Act, is now ready to take on the task at hand. It could be a busy few years ahead.
Written By: John E. Mulvaney, Jr., CFE, CPA
Ponzi schemes and the pandemic... a perfect storm?
If 2020 wasn’t bad enough, some experts believe the COVID-19 pandemic is creating the perfect conditions for an increase in Ponzi schemes. Here’s some advice on how best to deal with this type of fraud and why these schemes persist.
Written By: Jason Zirkle, CFE
The case of the disappearing printer ink
Despite futurists’ predictions, we don’t live in a paperless business world. Printer ink and toner are still an expensive necessity. Fraudsters depend on ink costing organizations more than caviar. Here’s how to prevent this asset misappropriation and possibly save millions.
Written By: Michael Yamma, CFE, Brian Molloy, J.D., CFE
Developing the entire fraud picture
CFEs should consider all aspects of a fraud case when calculating the impact of fraud. Here are three primary calculations when reporting the amount of fraud impact: Total exposure, fraud amount and known loss.
Written By: Alexis C. Bell, CFE
Are data-sharing consortiums the future of anti-fraud?
More organizations are collaborating with data-sharing consortiums to safely exchange fraud risk profile information that could improve their internal prevention and detection activities. Here’s an interview with Matt Galvin, global VP of ethics and compliance at Anheuser-Busch (AB) InBev, who discusses how cross-company collaboration might affect the anti-fraud profession.
Written By: Vincent M. Walden, CFE, CPA
Doctoring the books
These case studies will help inoculate medical practices against fraud through sound ACFE principles — from financial oversight to segregation of duties.
Written By:
Keeping tax-supported officials around the globe accountable
National agencies are adopting income-asset disclosure management systems to help ensure transparency and accountability among high-level political and governmental officials.
Written By: Haluk Ferden Gursel
Health care providers can protect PII by obeying EU's GDPR
Fraud examiners who work for health care providers should know the stipulations of the EU’s General Data Protection Regulation to protect patients from data breaches. The law also applies to U.S. organizations that provide care for EU citizens.
Written By: Robin Singh, CFE, LPEC, CFAP
Forensically preserving electronic evidence during a lockdown
During the COVID-19 lockdowns, how did fraud examiners manage evidence collection? Learn from forensic technology industry experts about collecting custodian information and remote data preservation.
Written By: Vincent M. Walden, CFE, CPA
All that glitters
If resources are valuable, fraudsters will use them to commit crimes. And they love to misuse gold, diamonds and other glittery materials from the depths of the earth. Here’s how countries are battling the schemes and what it all means for fraud examiners.
Written By: Mason Wilder, CFE
Mass-screening interview pivotal in targeting gunnery sergeant
At a U.S. military base, 2,400 rounds of government ammunition were missing. This NCIS special agent suspected a Marine Corps gunnery sergeant, but he needed definite proof. The special agent used an unusual mass-screening interview to discover evidence that ultimately led to the gunnery sergeant’s conviction.
Written By: Daniel Wessel, CFE
Recovering illicit assets offshore might become a bit easier
The British Overseas Territories (such as The Cayman Islands) and the British Crown Dependencies traditionally have been jurisdictions fraudsters use to hide proceeds of crime. However, recent legislation on the Islands could make it easier to conduct investigations into fraud and white-collar crime.
Written By: Kenneth M. Krys, CFE, CA
Fraud schemes and investigations amid the COVID-19 pandemic
The COVID-19 crisis is forcing companies to tackle significant operational, financial and strategic challenges. And some employees might be tempted to engage in embezzlement schemes or even manipulate financial statements, among other improper acts, to address their immediate financial needs.
Written By: Anthony Campanelli, Kevin Corbett, Christopher Georgiou
Daphne's message lives on
For years, journalist Daphne Caruana Galizia probed the activities of Malta’s ruling elite. She shared her findings — drug smuggling, money laundering, government corruption — on her blog, “Running Commentary,” and was regularly intimidated for her work. In 2017, she was murdered in a car bombing in Malta. Thousands have mourned her and demanded justice. Her son, Matthew Caruana Galizia, shares his mother’s story and how he and other investigative journalists worldwide are honoring her legacy.
Written By: Emily Primeaux, CFE
Mark Lee Greenblatt, CFE
Mark Lee Greenblatt, CFE, says he’s learned the importance of being fair, independent and objective — as an individual and as a leader within his organization. “In the inspector general community, we have a special responsibility as the independent oversight mechanism within our departments, and I’ve learned that we can be effective only if we operate with integrity,” says Greenblatt, inspector general at the U.S. Department of Interior.
Written By: Emily Primeaux, CFE
Insights without exposure
How should fraud examiners and legal professionals meet compliance standards but also keep individuals’ and organizations’ data private? “Differential privacy” is a system of cybersecurity that proponents claim can protect data far better than traditional sanitizing or anonymizing methods.
Written By: Vincent M. Walden, CFE, CPA
Win, win, win in fraud-case competition
Drexel University’s Fraud and Internal Control Case Competition (FIC3) lifts anti-fraud concepts off textbook pages and ingrains them into students’ lives. Learn how to help higher-ed institutions develop similar competitions.
Written By: Barbara Murray Grein, Ph.D., CPA, Frank Pina, CFE, CPA, CFF
‘A wink and a nod’ can’t rename high-tech government bribes
Raushi Conrad was a longtime, well-liked U.S. federal government high-tech specialist. He bucked the stereotype of the aloof, arrogant IT worker. But an anonymous email led to an investigation that showed he’d committed a one-man $1 million internal fraud scheme that involved chicken restaurants, computer viruses and “wink-and-a-nod” briberies. Here’s how to fend off similar high-tech crimes.
Written By: Colin May, CFE
Fraudsters are exploiting blockchains and digital currencies
Fraudsters are beginning to find the cracks in the armor of blockchains and cryptocurrencies. Initial coin offerings, Simple Agreements for Future Tokens and fake currencies are vulnerable areas. Here’s practical information for warning your organizations and clients.
Written By: Sri Ramamoorti, Ph.D., CFE, CPA, CIA, Sarah J. Webber, J.D., CPA, Mira Khalil
Telemedicine fraud ripe during COVID-19 pandemic
Telemedicine isn’t a new concept. It’s become an integral element of health care delivery. However, it’s prone to fraud opportunities because of the absence of direct patient contact. U.S. federal loosening of regulations during the pandemic has opened the door for more telemedicine visits and potential for fraud.
Written By: Robert A. Richman, CFE
Benford's Law still works
Can Benford’s Law practically identify fraud? It’s one of many tests you can use to discover fictitious numbers in supposedly random datasets, such as monetary amounts of purchase transactions. In this case, a comptroller successfully uses Benford’s Law to search for anomalies in warranty claims.
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The power of one
Daphne Caruana Galizia had the same dogged pursuit of fraudsters and the desire to bring them to justice that you do. She was an investigative journalist in Malta who was unwavering in her pursuit of allegations of corruption by government officials and businesspeople in her country. Tragically, she lost her life because of that pursuit.
Written By: Bruce Dorris, J.D., CFE, CPA
Severe water issues in Australia worsened by fraud
Traditional corruption frauds — bribery, kickbacks and conflicts of interest — are affecting water management and availability in Australia. Droughts, fires, and floods are raising the stakes.
Written By: Mason Wilder, CFE
Scammers using FedEx and COVID-19 ruses to collect PII
In separate scams, fraudsters target would-be victims who are worried about packages they might never receive plus COVID-19 threats. The criminals play on fears to harvest personally identifiable information.
Written By: Robert E. Holtfreter, Ph.D., CFE
The overlooked factor
A business can legitimately sell its outstanding invoices for a percentage of their face value to receive money quickly to expedite cash flow. The process allows nearly $3 trillion in transactions per year worldwide. However, invoice factoring is vulnerable to fraudsters. This case shows red flags and susceptibilities.
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Coronavirus fraudsters add to the anxiety and misery
The growing pandemic of coronavirus disease 2019 (COVID-19) is a global concern. It threatens to disrupt everything from international travel and supply chains to health care operations and the global economy. Like other natural disasters, the outbreak has also become an opportunity for fraudsters to cash in on public fears.
Written By: Jason Zirkle, CFE
One step forward, two steps back
Fraud examiners are always working to persuade management to search for internal fraud and adopt wise prevention controls. However, anti-fraud professionals can only give their best counsel and then work hard for a good outcome. Here are a fraud examiner’s early successes in a case and later frustrating management decisions. Regardless, he’s not daunted.
Written By: Jason Shepard, CFE, ARM
Study illicit ‘exfiltration’ and cryptocurrency to prevent fraud
Cryptocurrencies and cybercriminals aren’t going anywhere. Here’s how some fraud examiners discovered systematic patterns of attacker activity at a bank and instituted controls that protected the institution and helped a cryptocurrency exchange prevent future attacks.
Written By: Patrick A. Westerhaus, CFE, CPA
New phishing scams, fake FTC letters and more
Nothing’s sacred. Cybercriminals are now faking those “https” secure websites. Don’t fall for them plus assorted new phishing scams and fraudulent Federal Trade Commission letters.
Written By: Robert E. Holtfreter, Ph.D., CFE
Why audits fail
A bond of trust joins auditors with all who depend on the accuracy and completeness of their findings. But venal executives, captured regulators and compromised auditors can subvert that bond, betray confidence and dissipate capital. This article offers key insights and best practices to help CFEs — including those who are auditors — expose and mitigate threats to audit reliability.
Written By: Robert Tie, CFE
Avoiding the DOJ's red flags of collusion
The U.S. Department of Justice appears to have collusion in its crosshairs with its formation of a procurement and collusion strike force. Here are typical schemes and red flags in the context of new DOJ guidance.
Written By: Vincent M. Walden, CFE, CPA
Siddharth Kher, CFE
Siddharth Kher, CFE, first learned about the anti-fraud profession when he was working at Amazon. His curiosity piqued when he searched the internet for anti-fraud specialization courses and discovered the ACFE.
Written By: Emily Primeaux, CFE
The smoke detector
Howard Wilkinson smelled smoke when he was a trader for the Estonian branch of Danske Bank. The fire he discovered is a $230 billion debacle — possibly the largest-ever money-laundering scheme. Wilkinson’s investigative skills could help accelerate European reforms.
Written By: Dick Carozza, CFE
‘Massive’ Ponzi scheme, Jordan Belfort sues and bettor makes bad gamble
‘Massive’ Ponzi scheme, Jordan Belfort sues and bettor makes bad gamble
Written By: Emily Primeaux, CFE
Walking through the side door
A euphemism is an almost automatic and alternative method we use to phrase possibly negative things in a less harmful fashion. Fraudsters use euphemisms to rationalize their crimes. Fraud examiners can use them to elicit confessions or detect fraud in an organization. Here’s what you need to know to spot euphemisms and when fraudsters are using them to mask nefarious deeds.
Written By: Bret Hood, CFE
Avoiding bias in your fraud risk management program
Complex business environments require fraud examiners to have diverse skills and holistic points of view to properly address the plethora of business risks. Escape your biases. Consider multiple sets of guidance to stay apprised to increase business transparency and dismantle silos of information.
Written By: Vincent M. Walden, CFE, CPA
Medical identity theft growing exponentially
Medical identity theft is the fastest-growing form of identity fraud. Crooks use a myriad of ways to defraud federal governments and vulnerable patients. Here are the schemes and ways to avoid becoming a victim.
Written By: David A. Picard, CFE
Health care suspicions? Better call a fraud examiner
In an episode of the popular television crime drama “Better Call Saul,” a lawyer stumbles upon a case of health care fraud. In real life, fraud examiners are leading the fight against these types of widespread fraud schemes by gathering evidence, analyzing documents and separating fact from fiction.
Written By: Rick Ruffing, CFE, CPA, Rachel Brooks, CFE, CPA
Don't take this fraud for granted
The U.S. federal government disburses billions in grants annually to worthy recipients. These awards aim to make life better by promoting research and development, finding new disease treatments plus improving education, infrastructure, housing and much more. Of course, big money attracts fraudsters. Here we examine three main types of schemes and how fraud examiners can prevent and deter grant fraud. We also dissect the government’s latest anti-fraud guidance.
Written By: Ken Dieffenbach, CFE
The synthetic ID you can't see
Criminals are using a new form of fraud called credit privacy numbers (CPN) to defraud financial institutions and game credit bureaus. Fraud examiners will have to pool their resources and use investigative skills to connect the dots between credit bureaus and banks, and find new ways to combat this plague.
Written By: Jesse Gossman, CFE
CFE used ACFE student membership to propel career
ACFE student member and CFE shares her journey as a young professional navigating the collegiate to on-the-job path using the help of the ACFE.
Written By: Linh Dang, CFE
Canadian casino money laundering exposes greater fraud problems
A report on money laundering in Canadian casinos by drug-trafficking gangs exposes more than just gamblers showing up with bundles of $20 bills. Here’s a lesson for fraud examiners whose blinders might force them to focus on just one type of fraud.
Written By: Mason Wilder, CFE
What really motivates people to be honest in business?
What really motivates people to be honest in business? That’s just one question economist Alexander F. Wagner is asking in his research. This University of Zurich professor will speak on some of his developing answers at the 2019 ACFE Fraud Conference Europe March 27-29 in Zurich.
Written By: Dick Carozza, CFE
Change-of-banking-details scheme defrauds quietly
Beware fraudsters who want to masquerade as your service providers. They’ll steal purchasing information, change bank account details and trick you into paying them.
Written By: Kashmita Reddy, CFE
Did ‘psychic’ Maria Duval make a deal with the devil?
Burgeoning fraud against consumers is affecting millions. Two young investigative journalists at CNN recently reported an immense global mail fraud scheme targeting senior citizens.
Written By: Steve C. Morang, CFE
In Memoriam
Janet O. Hicks, a member of the ACFE since 2016, died August 13, 2018. “She was a wonderful colleague with a warm and friendly personality,” said Professor Ned Benton, her mentor, in the August/September 2018 issue of the John Jay News.
Written By: Mason Wilder, CFE
Emerging markets conundrum
Organizations are expanding into promising emerging markets. But they’re often encountering market volatility, geopolitical risks, weakening currency and fluctuations, and complex local laws, which can cause fraud and corruption risks. Here’s how to avoid some pitfalls.
Written By: Arpinder Singh, CFE
Journalist finds strength in numbers to keep truth alive
Pulitzer Prize-winning investigative journalist Bastian Obermayer isn’t afraid of investigating the global elite. He’s spent his career digging into the uncomfortable truths of Nazi war criminals, abusive Catholic priests and crooked politicians. Obermayer set into motion the largest collaborative event in the history of journalism when he initiated the Panama Papers. He’ll receive the ACFE’s Guardian Award and speak at the 30th Annual ACFE Global Fraud Conference in Austin, Texas, June 23-28.
Written By: Emily Primeaux, CFE
Erik Anderson, CFE
Fighting fraud for Erik Anderson, CFE, is so much more than conducting an examination. “I fight fraud by making sure what we’re doing is right,” says Anderson. “Whether I’m on the front lines of an investigation or using the principles of a fraud examination to better understand the risk to the organization, being a good fraud examiner is about challenging yourself to stand up for what’s right and seeking that out with passion.”
Written By: Emily Primeaux, CFE
Six candidates selected for ACFE Board of Regents' ballot
Six candidates have been selected to compete for two positions on the 2019-2020 Board of Regents. The board sets standards to promote professionalism and to ensure the reputation of the CFE credential.
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Dixon's quiet hero
The ACFE’s 2018 Sentinel Award recipient had no intention of changing her orderly life as the city clerk of Dixon, Illinois. And then she found a secret account in city ledgers that led to discovery of Comptroller Rita Crundwell’s astounding $53.7 million fraud. Kathe Swanson’s life will be forever marked by her simple heroic decision.
Written By: Dick Carozza, CFE
Fraud in the News
Scandal at the Vatican, health scams and ex-Enron CEO Jeffrey Skilling released from prison to a halfway house.
Written By: Randi Zimmer, CFE
Dr. Joseph T. Wells, CFE, CPA, named among ‘Most Influential People in Security’
ACFE founder and Chairman Dr. Joseph T. Wells, CFE, CPA, is among professionals named this year’s Most Influential People in Security by Security magazine.
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Spoofed emails enable purchase-order fraud
This case involved a Nigerian crime ring that stole Apple computers and devices by impersonating U.S. defense officials. Make sure purchase orders pass the “smell test,” and call agencies to confirm.
Written By: Bob Bates, CFE, CPA
South Asia follows parallel roads of burgeoning economy and escalating fraud
It’s a familiar story. A country or region finally is prosperous, but inevitably fraud and corruption increase. Here are some infamous South Asian cases and ways the region has battled what affluence wrought.
Written By: Mason Wilder, CFE
Jewelry magnate on the run after fraud exposed
Nirav Modi supposedly was one of the richest men in India. He came from a respected family and had close connections to the government. Could he really have pulled off a huge banking fraud to finance his business ventures?
Written By: Steve C. Morang, CFE
Elder financial abuse
When I started my career as a CFE, my background had been primarily in auditing and accounting, and most of my cases were corporate matters. Fraud victims were usually corporate entities looking to quantify a loss and mitigate the lapse in controls. I rarely encountered an individual who suffered a real loss because of a fraud scheme.
Written By: Robert Loh, CFE
Mentoring can move your career forward faster
Whether you’re at the beginning of your career — or second career — or you’ve had years of fraud examination experience, consider entering into a mutually beneficial mentor-mentee professional relationship. This article is for both of you and everybody in between.
Written By: Donn LeVie, Jr., CFE
Kathe Swanson's courage in a small town
Most of our event speakers instruct from the knowledge they have in specific areas of fraud examination. But Kathe isn’t trained in law enforcement, auditing or compliance. She’s someone who noticed something wrong and had the guts and determination to shine a light on it.
Written By: Bruce Dorris, J.D., CFE, CPA
Old-school tenacity
Digital analysis and search apps are invaluable. But nuanced interviewing, with an eye to discerning audiences, can yield solid evidence.
Written By: Megan Tiller, CFE
Dirty contracts
Contract and procurement fraud, collusion and corruption can rob profits from victims. Bid riggers conspire to eliminate fair and open competition and allow some to monopolize industries. Here’s some help in detecting common contract and procurement fraud schemes, and improving the integrity of the contract-award process.
Written By: Charles Piper, CFE
Charging anti-fraud costs to investigated business units might backfire
Consider keeping investigative charges within corporate security and other anti-fraud functions. You might then increase reporting of fraud and other crimes.
Written By: David P. Frizell, Jr., CFE
Escape the analytics software 'black box'
New developments in forensic data analytics are breaking down traditional barriers to access, transparency and usability. You don’t need an advanced degree to use “data blending” software.
Written By: Vincent M. Walden, CFE, CPA
Ripple effects of fraud
We often focus on a fraud’s perpetrator, the conditions that allowed the fraud, plus the victim business and its owners. In this case, the authors cover the bases but also discuss the forgotten aspect: how the fraud affects so many more who live in the concentric circles around the fraudster.
Written By: Zachary M. Kelley, Trevi Kelley, Cecily Raiborn, Ph.D., CFE, CPA
Victimization of the Massachusetts State Police
If the oldest, largest and arguably most prestigious law enforcement agency in New England can become a victim of multiple frauds, what does that say about your organization’s exposure?
Written By: Lawrence P. III, CFE
A doping dichotomy
A man in Los Angeles was determined to make a documentary that showed the anti-doping system in sport was a fraud. A man in Moscow helped construct that fraud. When Bryan Fogel and Grigory Rodchenkov met in 2015, neither could have guessed they’d land together in the middle of a dangerous geopolitical crisis that would expose decades-long corruption, shake up the Olympics and, ultimately, produce the riveting documentary, ICARUS.
Written By: Dick Carozza, CFE
Power of presence
Leaders at all levels should daily use such high-level soft skills as collaboration, creativity, curiosity, problem-solving, communication skills, conflict management skills, strong work ethic, adaptability, social awareness, empathy, emotional intelligence (the arbiter between the rational brain and emotional brain) and clear self-expression (the ability to clearly express ideas, thoughts and opinions in a variety of media).
Written By: Donn LeVie, Jr., CFE
Predicting bad behavior
Though fraud-risk teams worldwide don’t have psychics on staff (that we’re aware of), they can rely on predictive analytics to ascertain the future and assess the probability that third parties will commit fraud — or already have committed undiscovered frauds.
Written By: Allan Sammy, CPA, CGA, CIA, Vladimir Yasenovskiy, Ph.D.
Swiss whistleblowers pay the price
Whistleblowers are “in.” We regularly hear spectacular U.S. stories of employees blowing the whistle on organizations and receiving large federal payouts from prosecution of multimillion-dollar fraud cases. But what’s the whistleblower situation in Europe and, more specifically, my home base, Switzerland?
Written By: Audrey Milesi, CFE, AML, ACCA
End of the trail
Between 1998 and February 2009, accountant James T. Hammes embezzled more than $8.7 million from his employer, G&J Pepsi-Cola Bottlers Inc. He was indicted shortly thereafter on 75 counts — including 38 for wire fraud and 36 for money laundering — but wasn’t arrested until May 16, 2015. Why did it take so long to arrest Hammes? After the FBI had questioned him in 2009 about the theft, he left his family and life, and began hiking the Appalachian Trail (AT).
Written By: Colin May, CFE, Scott Morantz, CPA
Are the prices of cryptocurrencies being manipulated?
Investors and regulators are concerned that cryptocurrencies are highly susceptible to price manipulation. This danger is particularly pronounced for the hundreds of small, thinly traded “altcoins” that have popped up in the wake of the success of bitcoin and Ethereum. In February, the Commodities Futures Trading Commission (CFTC) issued an advisory warning investors that these small virtual currencies are targets for pump-and-dump schemes.
Written By: Jordan Underhill, J.D., CFE
She didn't avert her eyes from 1MDB corruption
Clare Rewcastle Brown just couldn’t ignore the corruption. “I could see it was a massive and underreported scandal of vast proportions,” Brown says in the cover article, written by Sarah Hofmann, CFE. “I asked why no one was covering it, and for some time I hoped someone else would. Then I realized all the local people who knew about it felt disempowered.”
Written By: Bruce Dorris, J.D., CFE, CPA
Pablo Santamaría Cisneros
Pablo Santamaría Cisneros, CFE, believes that a deep digital transformation is happening in the anti-fraud profession. “New cybersecurity and fraud threats are coming,” he says. As global anti-fraud senior manager at BBVA in Madrid, Spain, Santamaría is tackling these new threats by using data-driven business models and advanced analytics while adapting BBVA’s strategies to work with professionals, tools, methodologies and knowledge in the global community.
Written By: Emily Primeaux, CFE
A practical take on fortifying anti-fraud training
In my November/December 2017 column I wrote that academia should expand traditional forensic accounting programs so our future professionals can respond well to contemporary fraud issues. Many universities do include additional training on identifying and understanding fraudulent activities and are hiring more instructors with practical experience.
Written By: Sandra Damijan, Ph.D., CFE
Lone brave journalist exposes 1MDB corruption
Independent journalist Clare Rewcastle Brown, at the risk of her safety and without the protection of a news organization, has exposed the flow of billions of public Malaysian dollars from the government’s 1MDB development fund to the country’s top leaders and many others. She says democracies need strong, cynical, courageous media to help protect the public against the powerful.
Written By: Sarah Hofmann, CFE
Fraud in the News
'Pharma Bro' sentencing, Theranos CEO charged and beer fraud
Written By: Randi Zimmer, CFE
A case of 'Grande Frode' at BT Italy
The “Project Crane” investigation into alleged bullying and other inappropriate behavior of BT Italy executives uncovered the multi-year accounting fraud. In October 2016, BT estimated the fraud to be 145 million pounds. That number grew to 530 million pounds in just four months, and BT would lose more than 8 billion pounds in market capitalization as its shares entered a free fall.
Written By: Steve C. Morang, CFE
Anonymous shell companies rising
Criminals have learned, through trial and error, that anonymous shell companies can pass scrutiny. Authorities and entities don’t question them, the fraudsters blend in and they don’t appear to be risky. They represent the next big sale, the new low-cost supplier or the helpful business agent. And organizations are eager to work with them. It’s time to start reversing this trend.
Written By: Ryan C. Hubbs, CFE, CIA, CCEP
Chile's anti-corruption model raises Latin American standards
In 2017, Odebrecht, a Brazilian construction company, admitted to using bribery and corruption to secure more than 100 projects in 12 countries in Latin America, which generated illegal gains of about $3.3 billion. Odebrecht’s corruption reached the highest levels of government: The web of bribes implicated Latin American presidents, senators and officials.
Written By: Liseli Pennings, CFE
Impersonating the good guys
Susan West was perplexed when she received an email from the Internet Crime Complaint Center (IC3) notifying her that she was eligible for restitution after internet fraudsters had ripped her off. She didn’t remember that she’d been a victim. But she followed the directions to claim the restitution by clicking on an attachment, downloading a form that she filled out with her personally identifiable information (PII) and emailing it to the “IC3.”
Written By: Robert E. Holtfreter, Ph.D., CFE
‘Machine learning’ fights fraud behind cash registers
A global “quick-service” (i.e., minimal table service) restaurant business with thousands of locations accelerated its employee theft-and-error detection rate at the cash register by approximately threefold. Enhancements included the risk analysis of geographic regions, stores, employees and point-of sale (POS) transactions plus integrating “machine learning” for improved fraud detection.
Written By: Vincent M. Walden, CFE, CPA
Fraudulent facets
Diamond fraudsters dupe consumers of all types, including savvy investors and collectors. The global diamond trade, like many other collectable markets, is at the mercy of the absence of transparency. Buyers must cautiously scrutinize gemstones and other low-utility/high-value objects. Here are practical ways for fraud examiners to avoid rip-offs.
Written By: Donn LeVie, Jr., CFE
A ticking time bomb?
Fraud Magazine recently spoke with veteran CFEs Ján Lalka in the Czech Republic, Jonathan T. Marks in the U.S., and Sean McAuley in Scotland about how fraud examiners can help organizations develop secure, workable whistleblowing programs. This article explains why they're essential and, in some cases, a matter of life and death.
Written By: Robert Tie, CFE
CFEs elect Ryan Hubbs, Tony Prior and Elizabeth Simon to be Regents
Certified Fraud Examiners elected Ryan C. Hubbs, CFE, CIA, CCEP; Tony Prior, MBA, CFE; and Elizabeth Simon, CFE, CPA, to the 2018-2019 ACFE Board of Regents from nine candidates selected by the ACFE Nominations Committee. Hubbs, Prior and Simon took office at the board’s meeting in February at ACFE headquarters in Austin, Texas.
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Wildlife traffickers eye money laundering
Wildlife trafficking has been defined as “any environment-related crime that involves the illegal trade, smuggling, poaching, capture or collection of endangered species, protected wildlife (including animals and plants that are subject to harvest quotas and regulated by permits), derivatives, or products thereof.” The Convention on the International Trade in Endangered Species of Wild Flora and Fauna (CITES) bans wildlife trafficking.
Written By: David Feige
Fed up
"Hello. This is John Wilson calling from the Federal Reserve Bank of New York Grants Department. You have been selected to receive a $9,000 federal grant based on your clean criminal history and the fact that you have paid your taxes on time. To claim your grant is very simple. You will need to pay a $250 processing fee to the Federal Reserve Bank of New York …” Would you have hung up?
Written By: Kristin Owens, CFE, Robert Amenta, CFE
Uber’s C-suite set poor tone at the top
In the January/February issue, we examined how Uber and its competitors have changed the hired car industry — and thereby changed the industry’s fraud profile. Here in part two, we take a deeper dive into some of Uber’s fraud, ethics and compliance issues that the business and mainstream press highlighted in 2017.
Written By: Steve C. Morang, CFE
Europol is uniting EU against fraud
Why do we have so much trouble preventing and deterring fraud across borders? You know the answer: lack of cooperation. However, most European law enforcement organizations don’t want to compete with each other. They want to help each other deter and prevent crime. But they need some overarching force to help them work together. That’s where Rob Wainwright and Europol come in.
Written By: Dick Carozza, CFE
‘Profit & Loss-of-One’
Compliance professionals’ ultimate objective is a world in which employees receive only trainings and communications that are relevant to their roles, at exactly the right time (before they encounter compliance issues that require their attention) and in the right amount.
Written By: Ey Fraud Investigation & Dispute Services
A front-line perspective on European anti-fraud training at the IACA
In my November/December 2017 column I wrote that I’d like to share ideas on anti-fraud trainings and related issues to bring together practitioners, academics and students from around the world. Here I’ll focus on anti-fraud training needs in Europe. The International Anti-Corruption Academy (IACA) in Laxenburg, Austria, was formed to overcome shortcomings in anti-fraud knowledge and practice.
Written By: Sandra Damijan, Ph.D., CFE
Confronting the challenges of cross-border fraud examinations
You might eventually work on an internal fraud examination within your global organization that could cross several borders. You can immediately assume, of course, that your examination will be byzantine. If you don’t possess expert knowledge on international laws, procedures and cultural norms you’ll have to add team members who do.
Written By: Robin Singh, CFE, LPEC, CFAP
'Value propositions' and 'set-up statements' are persuasion tools
Whether you’re promoting your expertise to a potential client, marketing a product to a possible customer or pitching an idea to your manager (or your spouse), you should first pique their curiosity before moving forward. You do that with a value proposition or positioning statement. (Business types once called it a unique selling proposition, but most have set it aside for this term that promotes value instead.)
Written By: Donn LeVie, Jr., CFE
ACFE and ADAA bring regional fraud conference to Abu Dhabi
Hundreds of anti-fraud professionals will gather at the 2018 ACFE Fraud Conference Middle East, Feb. 25-27 hosted at Jumeirah at Etihad Towers by the ACFE and Abu Dhabi Accountability Authority (ADAA).
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Small town, huge fraud, insightful documentary
Kelly Richmond Pope, Ph.D., CFE, CPA, an associate accounting professor, has produced and directed a riveting documentary, “All the Queen’s Horses,” about Rita Crundwell’s historic $53 million embezzlement from the city of Dixon, Illinois.
Written By: Dick Carozza, CFE
Tom Golden, CFE, CPA
“I’ve often said in mentoring staff that no matter how smart you are, no one’s successful without someone else giving them a hand up the ladder of success,” says Tom Golden, CFE, CPA. Golden, a professional speaker, author and retired partner at PricewaterhouseCoopers (PwC), now focuses on speaking engagements and the debut of his new novel but says he owes a debt to all who have helped him during his professional career.
Written By: Emily Primeaux, CFE
Ransomware continues to evolve into new variants
Ransomware, which morphed from scareware fraud around 1998, isn’t abating. Fraudsters are still holding electronic devices ransom with creative variants and extorting money and personally identifiable information. Here are some of the historical and current developments plus ways to help others avoid ransomware.
Written By: Robert E. Holtfreter, Ph.D., CFE
Staying cool in the deposition hot seat
Don’t let your performance suffer as an expert witness during a deposition because of an overbearing attorney asking the questions. Here are tips on how to keep your cool and do a great job for your client.
Written By: Eric A. Kreuter, Ph.D., CFE, CPA, CGMA
Internet of Things
It’s all connected. From comic-book enthusiasts to conspiracy theorists to new-age acolytes — many believe that those seemingly random dots do connect. And now the “Internet of Things” (IoT) might start us down that road.
Written By: Robert E. Holtfreter, Ph.D., CFE
Survey helps begin conversation on using biometrics to deter financial aid fraud
New and different concepts can cause fear or hesitancy. However, biometric ID is no longer new and different; it’s proved efficient, effective and secure. The technology is part of everyday life for those younger than the baby-boom generation and probably for most baby boomers. Organizations that offer financial aid could increase security and a protection against fraud in their application processes by requiring a combination of a thumb and/or fingerprints plus numeric passcodes such as Social Security numbers.
Written By: Dahli Gray, DBA, CFE, CPA, CGMA, John Tahlier
Fraud in the News
Student loan fraud, tighter enforcement on robocalls and college email phishing on the rise.
Written By: Randi Zimmer, CFE
Darknet denizens slither past the law
The darknet is the latest example of technology that’s become a breeding ground for criminal activity. Combating virtual crime in this subset of the deep web is exceedingly difficult because of its anonymity. However, here are some ways law enforcement and fraud examiners are fighting these elusive miscreants.
Written By: Charles Rabeno, Ed.D., CFE
Uber faces fraud challenges in industry it redefined
Apart from drawing the scorn of industry regulators across the globe, Uber has been at the center of multiple fraud and workplace harassment allegations and numerous U.S. Department of Justice (DOJ) investigations. According to one Uber executive I talked to, who requested anonymity, the DOJ is conducting no less than six current investigations involving Uber.
Written By: Steve C. Morang, CFE
Fraud isn't rocket science
What do pizza chains, horror movies and ski lodges have in common with rockets, satellites and space stations? The U.S. National Aeronautics and Space Administration (NASA) has paid for all these things, whether knowingly or unknowingly.
Written By: Sarah Hofmann, CFE
Audio recording physician exams
Here’s a simple way to help prevent health care fraud. Patients, with their doctors’ consent, can audio record doctor visits with their smartphones. Audio recordings can verify bills submitted for health care services. And medical providers can upload and store audio files in patients’ electronic medical records to help ensure the veracity of physicians’ diagnoses and interventions.
Written By: Kathleen A. Nicholls
Auditing an organization's governance and ethics
An internal auditor usually analyzes an organization’s ethics when it has an important impact on other key governance aspects, such as risk management, compliance, strategy and how it conducts its business. Strong ethics helps an organization perform better. Here are some practical difficulties that auditors might face when auditing an organization’s governance (not an exhaustive list):
Written By: Nikola Blagojevic, CFE, CISA
Tough life lessons from the Bernie Madoff Ponzi scheme
On Sept. 9, 2016, Audible released the first episode of “Ponzi Supernova: Madoff Speaks,” a six-part series hosted and reported by Steve Fishman. The series focuses on the $65 billion Ponzi scheme at Bernard L. Madoff Investment Securities LLC, spearheaded by Madoff, which crumbled with the 2008 financial crisis. As many have said before me, this is a great series for fans of the “Serial” podcast, but for anti-fraud professionals this also serves as an in-depth look into a disturbing case of widespread, unchecked fraud.
Written By: Courtney Howell
The grand scheme of things
We all know fraud isn’t a new phenomenon. But what plays in the news can surprise even the most skilled anti-fraud professional. Cases of multimillion-dollar companies entangled in fraud now take precedence over other kinds of criminal activity. But is the high-stake game of fraud limited to multimillion-dollar organizations?
Written By: Felicia Riney, D.B.A.
Secrets
In two unrelated but sadly similar cases, Harvey and Larry carried on secret, sexually aberrant lives that were decidedly at variance with their known, socially respectable lives. Unfortunately, Harvey and Larry encountered extortionists who exploited their secrets, which cost each man thousands of dollars and one his life.
Written By: Annette Simmons-Brown, CFE
Hiding in plain sight
Lives Well is a fictional name for a real perpetrator of transaction laundering. It’s the kind of company that flies through automated application checks for most financial products because this thoroughly modern-day enterprise is nothing but a front — an empty shell company hiding a dark secret.
Written By: Albert James Galloni
Utah's 'White Collar Crime Registry'
The Utah legislature began to fight back against affinity fraud in 2011 when it modified the Utah Uniform Securities Act to include harsher penalties for those who used positions of authority to defraud others or who preyed on adults who are impaired because of age, mental or physical disability. The battle continued in 2015 with the White Collar Crime Registry (WCCR).
Written By: Chelsea M. Dye, J.D., Ronald Mano, Ph.D., CFE, CPA
27th Annual ACFE Global Fraud Conference
In one week in June, more than 3,000 fraud fighters met in Las Vegas to fill up their tanks and charge their batteries with hours of practical anti-fraud techniques and networking with peers. And to revel in their value to the anti-fraud profession.
Written By: Dick Carozza, CFE
When the Wright Brothers became fraud examiners
The world knows Orville and Wilbur Wright as the team that designed, built and flew the first successful powered flight in a heavier-than-air machine. However, few know that Wilbur and his older brother, Lorin, once came to the aid of their father, Bishop Milton Wright, an itinerant “circuit” preacher, to expose suspected financial abuse in the United Brethren Church.
Written By: Donn LeVie, Jr., CFE
Insider threats!
Don’t let departing employees leave with valuable intellectual property. Use digital forensics in daily workflows before they resign and in exit interviews to prevent IP theft rather than potentially be involved in litigation after they’re gone.
Written By: Ryan Duquette, CFE, CFCE
Strengthening the link between the classroom and practice
Future fraud fighters, whatever their specialties, benefit greatly from having opportunities to practice skills such as interviewing and expert-witness testimony. Who better than a practitioner to help bring these activities to the classroom?
Written By: Patricia A. Johnson, MBA, CFE, CPA
Tax preparers gone wild
Many naïve taxpayers — who believe that all tax preparers have to be certified, licensed or regulated in some way — place their entire trust in supposed experts to handle one of the most serious dimensions of adult life.
Written By: Annette Simmons-Brown, CFE
Out of the frying pan and into the fire
Crime, of course, doesn’t pay. And committing another crime in an attempt to resolve the financial consequences from the first will only dig the perpetrator into a deeper hole. In Dixon’s case, she narrowly avoided jail time for her initial fraud at Classen, but she’s now serving time for the Tompkins County probation violation and could serve even more from the drug charge in Nebraska.
Written By: John E. Little, CFE, CPA
Scammers targeting students with loans, bankruptees, LinkedIn users and more
Fraudsters, who find bankruptcy information and contacts in public records, are effective because they prey on the fears of stressed, panicked victims.
Written By: Robert E. Holtfreter, Ph.D., CFE
Immunize your organization
A major finding of this study is that contrary to public opinion data breaches have hit organizations of all sizes and in every type of industry. Nobody is safe. Immunize your employees to prevent the insidious infections.
Written By: Adrian Harrington, Robert E. Holtfreter, Ph.D., CFE
The virtual future of money laundering
While today’s leading virtual currencies, like bitcoin, may or may not pass the test of time, the underlying technology is here to stay. Innovators are taking us into a new realm in the exciting (and to some, terrifying) world of virtual currency. How do we prevent criminals from abusing the system in this still fairly new technology?
Written By:
A CFE reflects on his approaching 25th anniversary
As I walked up to the podium to make a presentation at a fraud seminar at the Rutgers University Business School, I looked out into the audience. I saw students, law enforcement veterans, New Jersey ACFE Chapter members, auditors and accountants. And I wondered how many sitting there were going to be our future CFEs.
Written By: Edward R Smith, CFE, LPD
Shell shocked
The leak of the huge cache of offshore data in the Panama Papers reveals decades-old shell companies — many of which fraudsters have used to launder money and hide crimes. How can fraud examiners use the data? Will the revelations cause governments to overcompensate with overbearing regulations? Or will the exposé ultimately be ignored because unethical systems are so entrenched?
Written By: Dick Carozza, CFE
A passion for fighting corruption
Alexandra Wrage, founder and president of TRACE International and a former member of FIFA’s Independent Governance Committee, shares her thoughts on last year’s FIFA scandals, the recent release of the Panama Papers and the keys to tackling global corruption through anti-bribery and corruption compliance support.
Written By: Emily Primeaux, CFE
Traditional investigative approaches in China can lead a company into a sinkhole
Guest columnists Howard Wang and Kent Kedl posit that traditional investigations don’t work well in China because of ingrained features of China’s business and legal environment. They suggest changes that will help foreigners in their fraud examinations.
Written By:
More than words
Unaoil, a Monaco-based oil consulting company, was recently exposed in a media investigation for potentially supporting or facilitating bribes on behalf of large multinational firms in the oil and gas industry. The Unaoil case provides several lessons on using forensic email reviews to help gather evidence or indications of fraud, misconduct and regulatory non-compliance.
Written By: Sundaraparipurnan Narayanan
Dirty digital dollars
Cybercrime and identity theft have evolved into a sophisticated global economy. Perpetrators use the anonymity provided by digital currency and the internet to hide themselves, their criminal acts and their gains. This nine-year cybercrime investigation case illustrates one of the few law enforcement successes in fighting these crimes.
Written By: John Bandler, Esq., CFE, CISSP, GCIH
Why not getting the job offer isn't all that bad (it's fixable)
What? You didn’t get that job offer you were hoping for, even though you followed all the right strategies and tactics (hopefully the ones I’ve previously recommended in this column)? Well, you have no control over some of the variables in the hiring process, such as the economy, the fraud examination profession and regulatory compliance that stymies job growth, among others.
Written By: Donn LeVie, Jr., CFE
Top 10 factors leading to hotline distrust
Because of worldwide laws, hotline-reporting programs are ubiquitous. But many fail because employees don’t trust them. Here’s how to ensure you have a quality system that concerned employees will use without fear of retribution.
Written By: Ryan C. Hubbs, CFE, CIA, CCEP
Charles Washington, CFE
Charles Washington, CFE, has learned over his many years in the anti-fraud profession that it takes tenacity, patience and good communication to discover and remediate fraud. As a director – global security, Americas, Washington is responsible for drug diversion and drug discount pricing fraud investigations at Pfizer.
Written By: Emily Primeaux, CFE
ACFE Foundation awards scholarships in 22nd year of Ritchie-Jennings Memorial Scholarship Program
The ACFE Foundation has awarded $55,000 to college and university students through the Ritchie-Jennings Memorial Scholarship Program for the 2016-2017 school year. Each recipient also will receive a one-year ACFE student membership.
Written By:
It's all about customer service
This column’s cases deal with improper accounting for special arrangements made with customers. Companies go to great lengths to meet sales goals, including offering special incentives for customers to buy their products. But the accounting rules provide a framework for how and when such incentives should be reflected in a company’s financial statements.
Written By: Gerry Zack, CFE, CPA, CIA
'I didn't commit that crime!'
Financial identity theft occurs when someone misappropriates your personal information to open new accounts, or uses your existing bank or credit accounts to make purchases. A newer type of identity theft — criminal identity theft — is spreading across the country and can be even more damaging than having a criminal destroy your credit rating.
Written By: Robert K. Minniti, CFE, CPA, CVA, CFF
She-wolves in shepherd's clothing
Greed is everywhere. It pollutes all industries and organizations, including those dedicated to helping the poorest and most vulnerable of our society. And it breeds fraudsters within these organizations who have profound canniness and precisely zero moral queasiness when selecting their victims. Fraudsters like Emma and Kate.
Written By: Annette Simmons-Brown, CFE
Smartphone security
While it’s crucial that CFEs are aware that mobile devices — smartphones and tablets — bring fraud risks to organizations, it’s also critical that they know the risks of using their own mobile devices in professional settings.
Written By: Nikola Blagojevic, CFE, CISA
Identifying prescription abuse via fraud analytics
People are dying from drug overdoses in increasingly alarming numbers. They’re from poor, middle-class and wealthy communities. The deaths have jumped in nearly every county just in the U.S. — driven largely by an escalating increase in addiction to prescription painkillers and heroin.
Written By: Erwin Acuna, CFE, Erik Chase, CFE, CPhT
Inaugural ACFE Middle East Fraud Conference reinforces global fight against fraud
Under the kind patronage of His Highness Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, the Deputy Ruler of Dubai and Chairman of the Financial Audit Department, and hosted by the FAD of Dubai, the inaugural conference brought together more than 400 anti-fraud professionals to learn the latest anti-fraud techniques and tools.
Written By: Emily Primeaux, CFE
Statistical sampling
With large caseloads and limited resources, fraud examiners need to be able to effectively and efficiently complete fraud examinations. A case is easier, of course, when we’ve isolated the fraudsters, discovered what they’re doing and how they’re committing the crimes.
Written By:
Roving signature stamp
Pamela Johnson, a low-level accounts assistant, had a hidden gambling problem and the trust of the Tompkins Consolidated Area Transit. Here’s how she exploited her employer’s confidence and how the external auditors actually discovered the devastating three-year fraud.
Written By: John E. Little, CFE, CPA, Jason H. Grossman
Fraud examination 2025
Fraud examiners must think innovatively to stay ahead of fraudsters and prevent fraud from growing exponentially. We all know this, but this maxim challenges practitioners and educators because the business environment is changing rapidly.
Written By: Patricia A. Johnson, MBA, CFE, CPA
Fakes, forgeries and dirty deals
The opaque and unregulated global art market is vulnerable to forgeries, tax fraud, insurance fraud and money laundering. Here are details on how fraud examiners can detect and investigate crimes in this murky corner of creative commerce and why circumstances are often in the fraudster’s favor.
Written By: John Powers, CFE
2015 ACFE Asia-Pacific Fraud Conference tackles the big fraud questions
“When the ACFE was founded in 1988, the life of the Certified Fraud Examiner was not as complicated as it is today,” said Jim Ratley. “The computer was still in limited use, and we were just beginning to hear a new term: ‘the Internet.’ There was also a new device sitting on people’s desk called the fax machine. Little did we know how technology was about to change our profession.”
Written By: Emily Primeaux, CFE
Lack of integrity burdens society and opens portals to fraud
Integrity is the quality of always doing what you know you should do. Think about it. How many of the things that you know you should do, do you always do and never skip? How you would feel about yourself if you consistently did what you know you should do?
Written By: W. Steve Albrecht, Ph.D., CFE, CPA
Dipping into the cookie jar
Companies sometimes employ cookie-jar reserves during periods of strong financial performance as cushions for the inevitable future periods when performance will decline.
Written By: Gerry Zack, CFE, CPA, CIA
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