Teachers targeted in fraud scheme

When consumer activity increases substantially, with it comes the increase in consumer fraud. How are these fraudsters gaining access to consumer information? They do it by developing new schemes to get your personal identifiable information. The latest scheme targeted our teachers. Recently a fraudster did a little homework and created a fictitious email account in …

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Effectiveness of fraud hotlines

The Association of Certified Fraud Examiners (ACFE) recently released its 2016 Report to the Nations on Occupational Fraud and Abuse. Once again, the number one method for detecting fraud was through tips. Of the frauds that were discovered, 39.1% were discovered by tips. That number differs between companies based on the size of the organization. …

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Fraud Prevention for Public Officials

The Arizona Auditor General’s office recently issued the first part of a three part series fraud alert discussing what public officials can do to help prevent fraud within their organization. The fraud alert series will focus on the fraud triangle elements of opportunity, pressure and rationalization. The recently issued alert discusses the first element, opportunity, …

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Fraud Risk Assessments in Government

You may have heard your auditor ask you in the past whether management is doing a fraud risk assessment on a regular basis.  You may also have heard them ask how often the results of that assessment are being communicated to your board.  In many of the governmental entities we’ve done fraud questionnaires with, it …

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Why is the Auditor Really Asking about Misappropriation of Assets?

Ideally, as auditors, we rotate the staff we question during our annual audit internal control assessments.  Typically, we inquire of their knowledge of fraud, including such things as “misappropriation of assets.”  In some cases, lower level staff members of the auditee have difficulty coming up with answers, and will offer a negative response without appearing …

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Fraud Alert – Skimming

The Office of the Auditor General recently issued a fraud alert related to skimming, which is a scheme where cash is stolen before it is recorded.  There are two types of skimming; revenue skimming and accounts receivable skimming. The most common and the most difficult to detect is revenue skimming. Revenue skimming involves an employee …

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International fraud awareness week puts spotlight on fraud

International Fraud Awareness Week is an initiative to raise fraud awareness. Here are some basics that all organizations should follow to prevent and detect fraud, according to the Fraud Week website. Establish a fraud policy  This policy outlines what activities are considered and how they should be reported to management or the board of directors. …

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Why Per Diem Travel Might be a Good Idea

Work-related travel is commonplace and often necessary these days, but that doesn’t mean there aren’t a multitude of implications related to this topic.  A recent article in the November/December 2011 issue of FRAUD Magazine touched upon a variety of fraud schemes related to employee travel.  The article, titled “Traveling in High Style on the Organization’s …

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