Apr 12, 2017 11:00:00 AM

3 Ways Fraudsters Will Lie to You

Lies are the fraudster’s tools of deceit. They come in many forms, but there are three primary ways they are communicated. Being aware of the different types of lies and how to spot them can help you uncover a fraudster’s scheme more quickly. I will use an actual embezzlement case that was reported earlier this year to illustrate these different ways one can lie.

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Topics: Fraud

Apr 5, 2017 10:00:00 AM

3 Considerations Impacting the Severity of a Lie

This past Saturday, April Fool’s Day, my daughter was excited about telling a few lies. She started by placing black tape over the front of the remote control which made it seem as if the TV didn’t work when my wife tried to turn it on. This was an innocent and fun lie that caused very little emotional distress. For her next lie, she created a bit more drama.

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Topics: Fraud

Mar 29, 2017 10:00:00 AM

Don't Be Fooled on April 1st—The Five Truths About Lying

This Saturday is April Fool’s Day—the one day that we support and even encourage the act of lying. People are preparing their lies to fool their family and friends. There will also be companies that try to pull fast ones. Remember when Taco Bell ran ads announcing that it had purchased the Liberty Bell to “reduce the country’s debt” and renamed it the “Taco Liberty Bell?” Of course, this was not true, but it was the subject of a lot of discussions on April 1, 1996.

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Topics: Fraud & Compliance, Fraud

Mar 22, 2017 10:30:00 AM

Top Ways to Secure Your Data

As mentioned in last week’s post, there are numerous similarities when fighting fraud and cybercrime. This week we will highlight a HORNE Cyber blog post that covers five ways to secure your data. Within this blog, cybersecurity advisor Mike Skinner covers areas such as performing a risk assessment, testing vulnerabilities and increasing employee awareness—all areas that can also help business owners and executives fight fraud. Read about all five ways to secure your data in HORNE’s Cyber blog below. 

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Topics: Fraud, Cybersecurity

Mar 15, 2017 10:00:00 AM

Fraud and Cybercrime–One Fight

The Examiner blog is a tool developed to help fight fraud by reminding people that fraud is a risk and providing useful tips to help prevent, discover, and investigate it. HORNE also has the HORNE Cyber blog. Fighting fraud and cybercrime have numerous similarities, some of which are included below:

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Topics: Fraud, Cybersecurity

Mar 8, 2017 11:00:00 AM

Red Flags of Financial Motive

Next week I will be presenting at a conference to a group who fight fraud every day. They focus on evaluating insurance claims for potential fraud. This conference provides them the opportunity to sharpen their saws and collaborate with others. They will learn about best practices and lessons learned from other experts in their respective fields. I have the privilege of speaking to them about the red flags of financial motive. Understanding the fraudster’s financial motive is important because it can help with planning and execution of the investigative procedures.

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Topics: Fraud, Fraud Prevention

Mar 1, 2017 11:30:00 AM

Internal Control Lessons from an Epic Oscars Fail

“An ounce of prevention is worth a pound of cure.” This statement was from one of our founding fathers, Benjamin Franklin, who was speaking about fighting fires. But he could have been talking about the Oscars Sunday night and the internal controls that PwC had in place to ensure that the proper winners were announced. PwC has been behind the scenes of the Oscars almost since the very beginning. The firm usually has a brief moment in the Oscars' spotlight when two of its accountants enter the theatre with the briefcases containing the sealed award envelopes, but the 89th annual awards show was a different story. A New York Times article, Oscars Mistake Casts Unwanted Spotlight on PwC, addresses some of the details surrounding the mistake that involved the firm. Through the years, PwC has developed internal controls to prevent the winners from being revealed prior to the opening of the envelopes, but did they have controls to prevent the wrong envelope from being handed to the presenters?

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Topics: Segregation of Duties, Fraud

Feb 22, 2017 11:00:00 AM

5 “A”s to Make Sure Your Hotline Stays Hot

Numerous organizations simply check the box when it comes to implementing a hotline without focusing on the hotline’s effectiveness. This can be even more detrimental to the culture of an organization than not having a hotline at all. An effective hotline can bring your organization tips that can help your organization identify and mitigate fraud.

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Topics: Fraud, Hotlines

Feb 15, 2017 10:30:00 AM

4 Reasons Hotlines are Important

We know that tips are one of the best sources for detecting fraud and that hotlines are a great way to capture tips. If that’s the case, then why do companies often choose not to have hotlines? In victim organizations, the organizations with greater than 100 employees had hotlines in 74% of the cases, and for the smaller organizations, hotlines were only present in 25% of the cases. This is staggering because the implementation and management costs are minimal and the benefit of discovering fraud is huge.

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Topics: Fraud

Feb 8, 2017 10:30:00 AM

Whistleblowers Are Not Tattletales

If you didn’t watch the game this past Sunday, you probably heard about it. The Patriots pulled off the greatest comeback in Super Bowl history. I am not about to rehash a discussion about the Super Bowl, but I do want to talk about the whistleblowers—the referee and other officials who make sure everyone follows the rules of the game. The crew officiating this year’s Super Bowl received an “A” for a job well done.[1]

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Topics: Dodd-Frank, Fraud