If someone steals your credit or debit card — or just your account number — and uses it to make purchases, will your card company hold you liable? The answer may depend on the type of card, whether the physical card is still in your possession and when you alert the card issuer. Credit cards […]

When thinking about the ways financial experts can uncover fraud, what usually comes to mind are data analysis and other forensic accounting techniques. But qualified experts also keep everyday managerial accounting practices in their fraud toolkit. Variance analysis After an organization finalizes its budget, management may perform a variance analysis, reviewing differences between actual and […]

Workers’ comp fraud commonly involves bogus claims by employees. To uncover such scams, look closely at accidents with no witnesses, or incidents that occur just before an anticipated strike or termination. And be suspicious about injuries that aren’t consistent with the nature of employees’ positions. Health care providers and insurance carriers also can perpetrate workers’ […]

You’ve probably heard that confidential hotlines are one of the best ways to uncover occupational fraud. But how do you set up an effective hotline? First, meet with your legal advisor and HR and operations managers to obtain buy-in and decide which department will fund the hotline, investigate leads and take other actions. Next, select […]

A growing number of businesses have been victimized by W-2 phishing scams. These frauds are a variation on traditional phishing scams, where criminals trick email users into providing confidential information, and then use that information to steal money or the victim’s identity. How it works In a W-2 phishing scam, cybercriminals, claiming to be from […]

When employees commit fraud, it can take months, even years, for their employers to discover the theft. But proactive fraud detection makes it possible for businesses to detect fraud schemes earlier — long before they generate significant losses. Step by step Proactive fraud detection starts with identifying areas where you lack key controls or where […]

If an employee has embezzled from your company but neither you nor the police can prove it, try the IRS. It’s a pretty safe bet that the embezzler failed to report his or her extra “income” to Uncle Sam. And the IRS is always interested in investigating tax evasion, regardless of whether a fraud prosecution […]

Even an extensive fraud prevention program can’t guarantee your company will escape fraud-related legal action. If you decide to initiate a civil suit or press criminal charges against an employee involved in fraud, you’ll need every resource at your disposal. One of the most critical is the expertise of a certified public accountant. Expert in […]

Financial statement fraud is committed by intentionally misrepresenting an organization’s financial condition. In general, it’s perpetrated by executives with significant accounting knowledge. Forensic accountants root out this type of fraud by looking for financial statement anomalies. Three common methods experts use are 1) vertical analysis, also called “common sizing,” 2) horizontal analysis, which examines percentage […]