5 Crazy Fraud Stories You Would Never Believe (If They Weren’t True)
From Russian government assassinations to multimillion-dollar blood-testing scams, there’s never a shortage of surreal fraud stories to rock the financial industry each year. And each year, the Association of Certified Fraud Examiners (ACFE) hosts the ACFE Global Fraud Conference to bring to life these hardly believable (yet true) financial cases by way of those who […]
Hear How Malaysian Money Illegally Financed a Hollywood Movie at the ACFE Global Fraud Conference
Clare Rewcastle Brown was in Malaysia investigating deforestation when she uncovered a corruption scandal that would lead her to Hollywood, the U.S. government, Las Vegas, diamond jewelry, rare art, and more.. 1MDB, Malaysia’s sovereign wealth fund, was set up to stimulate the country’s economy. Instead, it became a personal bank account for the country’s elite. […]
Not Auditing Is Twice as Effective as Auditing at Catching Fraud
Today, we have an interesting ACFE report that not looking for fraud is more than twice as effective as external audits at detecting internal fraud. From CFO.com: In the recent past, the Association of Certified Fraud Examiners has described where companies should concentrate their monitoring for employee fraud. In finance departments, for example, a majority […]
Detecting and Preventing Sex Fraud Isn’t All That Different From Detecting and Preventing Financial Fraud
Here’s Your Chance to Hear Andrew Fastow’s Story in Andrew Fastow’s Own Words
With apologies to Crazy Eddie's Sam Antar, Andrew Fastow might be the most notorious CFO in the history of financial reporting fiction. Mr. Fastow, as you're probably aware, was the Chief off-balance sheet-SPE web-builder at Enron. In other words, he's one of the guys you should probably be thanking for your jobs. Fastow was released […]
ACFE Fraud Report Fingers You
My fraud IQ sucks. The Journal of Accountancy told me that when I took the "What's Your Fraud IQ" quiz in the August issue. I usually do pretty well. Not this month – 40 percent. I should've cheated. The answers are right there. But like you, I live my life according to a Code of […]
Fraudbusters Get a Lesson in Internet Stalking
Yesterday I sat in a session at the ACFE Fraud Conference and Exhibit entitled “Effectively Using Social Networks and Social Media in Fraud Examinations” with a few hundred [?] fraudbusters and I got the impression that few people in the room were social media savvy (in the stalk-y sense, anyway). I came to this conclusion after watching most of the hands in the room go up when asked “who thinks social media is a waste of time?” and saw nearly same amount of hands raised when asked “do you have some sort of social network presence?”
Cynthia Hetherington, President of Hetherington Group, described herself as “[A] librarian, a technologist and licensed private investigator. So, I’m a nerd, I’m a geek and I’m a dick,” was the speaker for this particular session and a lot of her talk introduced the crowd to the idea of stalking people on the Internet. She knew her crowd well, as a joke about Laverne & Shirley’s apartment got plenty of laughs, while a quip about Snooki got crickets. This reinforced my suspicion that the idea that of curating information about financial crooks using Facebook and Twitter was new to many in the room.
Now, the majority of people listening may have known it was possible to find partially-nude pics on someone’s Facebook profile or Twitter account (which she demonstrated in one non-Anthony Weiner example) but maybe they hadn’t considered that they could learn a lot of other useful information about someone they were investigating.
In short, Ms. Herrington explained to the biz casual crowd that you can find out a lot of information about a person just by poking around their social media accounts. Whether it’s Facebook, Twitter, or LinkedIn, you can learn someone’s likes, dislikes, their political leanings, where they’ve lived, who their friends are, etc. and use that information to build a profile, analyze behavior or in some cases, find out where someone maybe hiding.
What does all this mean? Opportunity my friends. If you fancy yourself social media and Internet savvy, you probably have a leg up on many of the vets in the fraud and forensics business when it comes to poking around the Web and finding information on people of interest to you. Sure you may not have their years of investigative expertise, extensive contacts or an aging wardrobe but you may have successfully Web-stalked ex-significant others, crushes and completely random people to learn things that they’ve volunteered into cyberspace. And here you thought your creepy behavior was completely worthless.
Going Concern at the ACFE Fraud and Conference Exhibit
Next week I’ll be attending the ACFE Fraud and Conference Exhibit in San Diego where many forensic and fraud sleuths will be enjoying each other’s company and one-upping each other with stories on how many criminals they’ve busted over the years. It looks like you can still register so if my presence is the dealmaker for you, then I suggest you get on this.
John Walsh, the host of America’s Most Wanted will be giving a keynote although I’m a little confused as to what he’ll share with people that comb through ledgers for a living. Anyway, if you want to get in touch with me at the conference or while I’m in San Diego, you can email me, DM or @ me on Twitter or shoot me a message on LinkedIn or Facebook. I promise I’ll respond at some point especially if you offer to drive me to the beach or buy me an old fashioned in the Gaslamp Quarter.
And if you’re not in San Diego or attending the conference, don’t worry, I’ll be on a regular posting schedule so there will be the regular dose of inflammatory nonsense coming your way.