According to data company Dun & Bradstreet, business identity theft increased more than 250% in the first half of 2020. You can thank the pandemic — and the government’s release of relief and recovery funds to qualified U.S. businesses — for this remarkable number. In a more typical year, crooks use stolen business identities to
Fraud Archives - Page 4 of 9 - Crawford Ellenbogen
Nov 11, 2020
Oct 15, 2020
Is your business inadvertently paying a shell company?
- By Joan Ellenbogen
- Fraud
- 0 Comments
Shell companies exist only on paper, but they may be used to hold other companies’ assets and for other legitimate purposes. That said, some unscrupulous employees who perpetrate billing fraud use shell companies. Fortunately, most of these perpetrators leave a paper trail of invoices. These may arrive more than once a month, show increased purchases
Oct 7, 2020
“Synthetic” identity theft is even scarier than the original
- By Victor Dozzi
- Fraud
- 0 Comments
Traditionally, identity theft occurs when a thief gets hold of someone’s personal information and uses it to assume his or her identity to open accounts. With “synthetic ID theft,” the perpetrator creates a fictitious identity by combining real data, often from several individuals, with fabricated information. The fraudster then uses this Frankenstein monster type of
Sep 17, 2020
Some online sellers burnish their reputations at the expense of yours
- By Victor Dozzi
- Fraud
- 0 Comments
Reports started trickling into state agricultural agencies in July: Consumers were worried about strange seed packets they had received in the mail. The unsolicited goods weren’t labeled and appeared to be sent from China. In a year already fraught with anxiety and paranoia, the story quickly made headlines. Perhaps this was the first you’d heard
Sep 10, 2020
3 steps experts follow when investigating fraud
- By Joan Ellenbogen
- Fraud
- 0 Comments
When investigating suspected fraud, forensic accountants follow three steps to build a solid case. They generally interview management to gather information about the specific suspicion, general fraud risks and internal controls in place. They also interview suspects and possible witnesses. Next, they gather physical and digital information, such as HR files and IT records. Finally,
Sep 1, 2020
Journal entries may signal financial statement fraud
- By Joan Ellenbogen
- Fraud
- 0 Comments
With a median loss of $954,000, financial statement frauds are the costliest type of white-collar crime, according to the Association of Certified Fraud Examiners (ACFE). But by testing journal entries, auditors and forensic accountants can detect financial misstatement. Experts use technology tools to find red flags such as entries made to seldom-used accounts and by
Aug 25, 2020
5 ways to protect your investment accounts from fraud
- By Victor Dozzi
- Fraud
- 0 Comments
Because the average investment account boasts a much larger balance that a typical checking or savings account, cybercriminals are particularly interested in hacking them. Financial institutions are largely responsible for ensuring the security of these accounts, but business customers and consumers also should adopt defensive measures. Here are five recommendations. Select two-step authentication. Most financial
Aug 13, 2020
Watch out! Organized crime has adapted just fine to COVID-19
- By Joan Ellenbogen
- Fraud
- 0 Comments
Cyber fraud, including phishing and ransomware attacks, has grown exponentially since millions of Americans started working from home. But then, the organized crime networks behind it have always been agile when it comes to capitalizing on disruption and uncertainty. One way to help protect your business is by updating your cybersecurity plan. You should also
Aug 6, 2020
How some “reputable” professionals enable illegal opioid distribution
- By Victor Dozzi
- Fraud
- 0 Comments
It’s not just drug dealers and street gang members who profit from opioid addiction. “Reputable” professionals, including some doctors, are intrinsic to the success of many money laundering schemes related to illegal drug distribution. As one recent case illustrated, crooked doctors may write non-medically necessary prescriptions for illegal narcotics and clinics may deposit drug customer
Jul 28, 2020
Why you don’t need high-tech tools to find fraud
- By Victor Dozzi
- Fraud
- 0 Comments
Your business may be able to use common managerial accounting practices to find occupational fraud. Variance analysis, which involves reviewing differences between actual and budgeted performance, can be particularly effective. If, for example, actual wages significantly exceed budgeted wages, the difference could indicate that you have “phantom” employees on the payroll. A dramatically lower-than-usual contribution