Resource Library

It’s becoming increasingly common for organizations to require background evaluations of prospective employees or volunteers.  As an employer, be sure not to shortchange this process. Failing to perform a thorough evaluation may have larger repercussions than not performing one at all.
 

While discussing the impact that workers’ compensation fraud has on insurance costs, there was a hotly contested debate over who was to blame as premiums were rising out of control a few years ago.  There are compelling arguments made by those who feel employees or claimants are solely responsible for the fraud perpetrated against this program, while documented evidence also supports claims that employers are just as likely to commit fraud.

Hundreds of millions of dollars are lost to credit card fraud each year.  For consumers using credit or debit cards, adopting certain safeguards can be critical to avoid becoming another statistic.

After numerous postponements dating back three years, the long-awaited Red Flags Rule finally became effective Jan. 1, 2011. During this process, slight revisions have been made that impact the parties involved. It’s important to know whether your organization is subject to these rules.

According to available statistics, approximately 11 million Americans will fall victim to identity theft this year. Nearly half of these victims discover the intrusion within three months of its taking place. Taking steps to prevent it will prove less cumbersome than trying to rebuild your credit following a breach.

As someone who frequents South Florida, I’m constantly in awe of the mansions, yachts, luxury automobiles and well-dressed individuals. As we continue to read newspaper headlines about fraud schemes, one has to wonder – how much of what we see is genuine?

As white-collar crime has flourished in the recent recession, tax fraud has also captured recent headlines. The government has been aggressively trying to close loopholes and remedy weaknesses to secure more revenue for the Treasury. Cracking down on tax evasion has proven to be quite lucrative.

Healthcare fraud is running rampant. The National Health Care Anti-Fraud Association estimate 3% - 10% of the nation’s annual health care outlay is lost to fraud and abuse. Healthcare costs have been one of the fastest growing costs to organizations recently. Understanding the frauds being perpetrated will assist in their prevention and detection. If left uncontrolled, your organization, along with the rest of the system will be left footing the costs.

One of the key elements to understanding fraud is to realize that where opportunities exist, perpetrators can act. An organization’s ability to heighten the perception that fraud will be detected will substantially lessen the likelihood of its occurrence.

It seems that with every economic downturn (or recession, if you will), Americans are introduced to a different type of fraudulent activity.

As the economy continues to falter, your organization, like many others, may find itself more susceptible to fraud. It is estimated that U.S. organizations lose approximately.

Forensic accountants stress that the best way to prevent fraud is to establish an efficient control system. How much should you spend on such a system? What mechanisms have worked best for other companies? And, perhaps, most importantly – what is the price of doing nothing?

In any kind of business that issues payroll checks to employees, the possibility of payroll fraud exists. There are various ways payroll fraud can be perpetrated.

Conducting a third-party or corroborative interview is a key step in most fraud investigations and should be conducted by experienced professionals. There may be only one chance to interview an individual in an investigation, so investigators must make the most of it. It is important that a trained investigator conduct that interview.

You may think your company is protected against fraud, but statistics say that as much as 10 percent of all fraud in the nation takes place in manufacturing companies. Approximately one-third of these cases involved fraudulent billing, according to the 2006 Association of Certified Fraud Examiners’ Report to the Nation on Occupational Fraud and Abuse.

The typical organization loses 6 percent of its annual revenues to occupational fraud, according to the 2004 Report to Nation on Occupational Fraud and Abuse, Association of Certified Fraud Examiners. A well-designed plan can help you maximize your recovery.

Auditors routinely excuse themselves from the responsibility of detecting fraud, collusion in particular. It is difficult enough to uncover fraud when it is committed by an individual, but detecting a team of individuals working together to defraud an organization can be especially difficult. What steps can you take to detect and deter collusion?

More and more employers are learning that background checks are a necessity in their hiring practices. Simply confirming dates of prior employment isn't going to work for most companies today. Estimates are that nearly 10 percent of candidates applying for jobs have criminal violations, according to the Northeast Human Resource Association. As exemplified by the company featured in the associated case study , failing to adequately scrutinize new hires can have disastrous results. What precautions should your organization implement?

You may think your nonprofit organization is protected from fraud. Maybe you should review the status of your internal control systems to be sure. Internal controls are the safeguards put in place to protect an organization’s assets. Nonprofits face special challenges in this area.

When a fraud is suspected, organizations must proceed quickly, yet with caution. In most situations, simply calling the local police won’t help.

A recent fraud case in upstate New York that made headlines shows the importance of background verification. While on probation for embezzling funds from a former employer, the perpetrator committed the same crime against her next employer. This time she was ordered to prison for three to six years.