Fighting Fraud book cover

Fighting Fraud

How to Establish and Manage an Anti-Fraud Program

This practical reference provides the basics for instituting a corporate anti-fraud program that helps prepare corporate security professionals and other corporate managers for fighting corporate fraud from inside the company. It provides an exceptional foundation for security professionals or business executives involved in developing and implementing a corporate anti-fraud program as part of a corporate assets protection program.The author’s intent is to provide the reader with a practitioner’s guide (a “how-to” book), augmented by some background information to put it all in perspective. The approach used should enable the readers to immediately put in place a useful anti-fraud program under the leadership of the corporate security officer (CSO), or other corporate professional.

Audience
Corporate security professionals, accountants, investigators and auditors, students in security mgmt programs

Paperback, 360 Pages

Published: August 2007

Imprint: Butterworth Heinemann

ISBN: 978-0-12-370868-7

Contents


  • Preface

    Acknowledgments

    Introduction and Premise

    Section I: An Introduction To The Wonderful World of Fraud

    Chapter 1 The New-Old Global Business Environment

    Introduction

    Globalization of Business - Benefits to Nation-States

    Expansions of the Global Marketplace and their Areas of Operations

    Types of Corporations

    Corporate Owners and Locations

    Corporate Products

    The High-Technology Factor

    Nanotechnology1

    High-Technology Related Frauds and Other Crimes

    Advent of the Superhighways4

    The Impact of Superhighways on Frauds and Other Crimes

    A Short History of Crimes and Other Frauds Via the I-Way

    Superhighway Frauds and Other Crimes to I-Way Robberies

    I-Way Robbery - Its Prevalence

    There Is No I-Way Patrol to Stop I-Way Robbers

    Global Connectivity Via the I-Way = Global Exposure to

    Attacks by Fraud-Threat Agents and Other Miscreants

    Capabilities and Limitations of Law Enforcement

    Challenges to Security Professionals and Others

    Case Study 1

    Case Study 2

    Summary

    Chapter 2 Corporate Assets, Frauds and Other Terms - What are They?

    Introduction

    Definition of General Fraud

    Specific Fraud Definitions

    Corporate Assets

    Other Terms and Definitions

    Case Study

    Summary

    Chapter 3 Fraud-Related Laws

    Introduction

    Some U.S. Federal Fraud-Related Laws

    Relevant Consumer Protection Laws for Fraud in the United States

    A Few Examples of U.S. Federal Enforcement of Fraud-Related Laws, Approach and Actions

    Mail Fraud Statutes (condensed and paraphrased)

    Money Laundering

    Financial Institution Fraud (Bank Fraud)

    Civil Litigation

    U.S. Treasury Collection

    Securities Violations

    Role of Phone Companies

    European Fraud-Related Laws

    EU Fight Against Frauds

    ASIA and Fighting Fraud

    Case Study

    "Blowing the Whistle" on Defrauders can be Dangerous

    Summary

    Chapter 4 Corporations Don't Commit Frauds, People Do

    Introduction

    Are Defrauders a Product of Their Environment, or is it in Their Genes?

    Some Criminology Theories

    Fraud-Threat Agents

    Human Errors - Accidents

    Man-Made or Malicious Fraud Threats

    Potential Fraud-Threat Agents

    Capabilities

    Motivation

    Access

    Catalysts

    Inhibitors

    Amplifiers

    Fraud-Related Factors for Attacking Systems

    Relationship of Threat Elements

    Case Study

    Summary

    Chapter 5 Fighting Fraud - Whose Job is it Anyway?

    Introduction

    Role of Executive Management

    Role of Corporate Management

    Role of the Corporate Employees

    Role of the Ethics Director

    Role of the Auditor

    Role of the Fraud Examiner

    Role of the Chief Security Officer (CSO)

    Why the Corporate Security Professional?

    Case Study

    Summary

    Chapter 6 Where There is a Will There is a Way - Fraud Schemes

    Introduction

    Types of Fraud Schemes

    Financial

    Credit Card Skimming

    Mortgage Frauds

    Computer and Telecommunications Frauds

    ATM Frauds

    Click Fraud

    Clip-on Fraud

    Securities Frauds

    Employment Application Frauds

    Identity Theft Scams

    "Nigerian Scam"

    Accounting Fraud Schemes

    Bribery and Corruption

    Conflicts of Interest

    Purchasing - Four Basic Categories

    Inventory17

    Investments and Fixed Assets

    Payroll and Personal Expenses

    Procurement/Contracts

    Telemarketing Fraud

    Advance Fee Scheme

    Common Health Insurance Frauds

    Letter of Credit Fraud

    Prime Bank Notes

    The Ponzi Scheme

    Pyramid Scheme

    Case Study

    Summary

    Chapter 7 Fraud Cases and Commentary - Learning by Example

    Introduction

    Actual Fraud and Fraud-Related Cases

    Phishers and Taxpayers

    Fraud by Corporate Executives

    Foreign Exchange Trading Fraud

    Katrina Waste and Frauds

    Organized Crime and Cybercrime

    Securities Fraud in Cyberspace

    Computer Hard Drives Lead to Frauds

    Debt-Collecting Frauds

    Government Contracting Fraud

    Fraud-Threat Agents Can Be Anyone in Any Position

    U.S. Securities and Exchange Commission (SEC) Fighting Fraud

    Fraud in School Systems

    Dead Soldiers and E-Mail Scams

    Another Example of Insider Fraud

    Executive Management and Accounting Fraud

    Merchandise Receipt and Exchange Fraud

    Click Frauds

    Mortgage Fraud

    Government Contractors and Fraud

    Frauds and Microsoft Software

    Y2K-Related Fraud

    Data Storage Conducive to Fraud-Threat Agents

    Another Example of Click Fraud

    Pyramid Schemes Move on to the Internet

    Prepaid Cellular Phone Fraud

    Identifying International Corruption

    Credit Card Information Theft and Frauds

    Hackers, Crackers, Phishers, Oh My!

    Urban Legends and Frauds

    Medical Research Frauds

    Corruption and the War in Iraq

    Comments on Identity Thefts as a Vehicle to Fraud

    Lobbyists and Corruption

    Internet Scams are International

    Faking a Medical Condition

    Internet Fraud Sweep

    ATM Fraud

    Social Security Scam

    Stamp Fraud

    Banker and Identity Theft

    Accounting Firm Fraud

    Lawyers and Medical Rip-offs

    Another Mention of the "Nigerian" Scams - Variations on a Theme

    Case Study

    Summary

    Section II: Establishing and Managing an Anti-Fraud Program

    Chapter 8 The International Widget Corporation

    Introduction

    IWC Background Information

    Key Elements for the CSO to Consider

    Getting to Know IWC

    IWC's Business Plan

    Strategic Business Plan

    Tactical Business Plan

    IWC's Annual Business Plan

    IWC and the History of Its CSO

    Key Elements of IWC's Annual Business Plan

    Anti-Fraud Program Planning

    IWC's Departments of Primary Importance to the CSO

    IWC Vision, Mission, and Quality Statements

    Plans

    Other IWC Plans and CSO Support

    Case Study

    Summary

    Chapter 9 Establishing an Anti-Fraud Program

    Introduction

    IWC's Anti-Fraud Program

    Anti-Fraud Program Project Planning

    IWC Anti-Fraud Program Project Planning and Management

    Anti-Fraud Program Project Team

    Anti-Fraud Drivers - The First Major Task in Anti-Fraud Program Development

    IWC Anti-Fraud Program Requirements - Policies96

    Risk Assessment - The Second Major Task in Developing an Anti-Fraud Program

    Basics of IWC's Risk Assessment Process97

    Threats

    Natural Threats

    Man-Made Threats

    Vulnerabilities

    Risks

    Assets Protection Risk Assessments

    Assets Protection Risk Analyses

    Developing Anti-Fraud Defenses

    Three Key Ingredients in an Anti-Fraud Program's Defenses

    IWC's Anti-Fraud Policies

    Anti-Fraud Requirements and Policy Directive

    Anti-Fraud Procedures

    The CSO and Security Department's Anti-Fraud Accountabilities

    Off-Site Corporate Facilities

    Recruiting Anti-Fraud Professionals

    Case Study

    Summary

    Chapter 10 Managing an Anti-Fraud Program

    Introduction

    CSO Leadership

    Management versus Leadership

    Meeting Customers' Expectations

    IWC Internal Customers

    IWC External Customers

    IWC Executive Management Expectations of a CSO

    Managing Risk

    Security's Vision, Mission, and Quality Statements

    Managing the IWC Anti-Fraud Program

    Planning

    Some Aspects to Incorporate into an Anti-Fraud Program Plan

    Budgeting

    Controlling

    Quality, Process Improvement, and Assessment of Organization Performance

    Process Management

    Performance Management

    Using Technology to Deliver Anti-Fraud Program Support and Services

    Managing Quality and Management Oversight

    What is Risk Management As It Relates to IWC's Anti-Fraud Program?

    Managing and Reducing Risks to Corporate Assets

    Program for Managing Anti-Fraud Defensive Risks

    Responding to Fraud Incidents

    Managing Fraud Threats

    Case Study

    Summary

    Chapter 11 Winning through Teaming

    Introduction

    Anti-Fraud Program Team Building

    Executive Management as Team Members

    Teaming with IWC Executive Management Through a Business Approach

    Teaming with Corporate Peers

    Teaming and Dealing with Office Politics

    Teaming with Your Security Managers

    Teaming with Your Security Staff

    Teaming and Dealing with Satellite Offices in IWC Headquarters in the United States

    Teaming and Dealing with Satellite Offices in Foreign Lands

    Case Study

    Summary

    Chapter 12 Anti-Fraud Functions

    Introduction

    Anti-Fraud Project Team Functional Tasks

    Anti-Fraud Functions

    Anti-Fraud Program's Non-Security Team Functions and Members

    Case Study

    Summary

    Chapter 13 Are We Winning the Battle? How Do We Know?

    Measure it!

    Introduction

    Measuring an Anti-Fraud Program's Costs, Benefits,

    Successes, and Failures

    Common LOE Measurement Techniques for Each Function

    Examples of Metrics by Function

    Investigations and NCIS Metric Chares

    Examples of Anti-Fraud Investigations Metrics

    Process Measurements

    Case Study

    Summary

    Section III: The Fraudulent Future

    Chapter 14 What Will the Fraudulent Future Hold for Corporations?

    Introduction

    Globalization of Business to Continue

    Employees of the Future

    The Future Global Corporation

    Future of Fraud Attacks on Corporations

    Future Anti-Fraud Protection Needs of Corporations

    Case Study

    Summary

    Chapter 15 The Impact of High Technology on Fraud

    Introduction

    High-Technology Frauds

    High-Technology Anti-Fraud Defenses

    Case Study

    Summary

    Chapter 16 What the Security and Other Anti-Fraud Professionals Must Do Now to Personally Prepare to Combat Tomorrow's Frauds

    Introduction

    Becoming and Staying Proactive and Aggressive in Fighting Fraud

    Getting a Fraud Education

    Gaining Fraud-Related Certifications

    Associations

    Gaining Anti-Fraud Experience

    To Conduct or not to Conduct Fraud Lectures and Write Fraud Articles

    Case Study

    Summary

    Chapter 17 Summary and Final Thoughts

    Introduction

    Summary

    Final Thoughts

    hat Others Think About the Anti-Fraud Leadership

    Position in a Corporation

    Toby J. F. Bishop, CFE, CPA, FCA, President and Chief

    Executive Office, Association of Certified Fraud Examiners

    World Headquarters

    In Conclusion-My Thoughts

    Some References

    End of Line

    About the Author

    Index


Advertisement

advert image