When the value of a stock skyrockets, its investors may think they have hit the jackpot, but if the stock in question is part of a ‘pump-and-dump’ scheme, investors may, in fact, lose their shirts. Here is how to avoid getting taken by this type...
Early revenue recognition has long accounted for a substantial portion of financial statement fraud. By recording revenue early, a dishonest business seller or an employee under pressure to meet financial benchmarks can significantly distort profits. Fortunately, fraud experts have tools to expose such manipulation. Multiple methods Early...
When it comes to reducing fraud loss and duration, active detection methods (such as surprise audits or data monitoring) are far more effective than passive methods (such as confessions or notification by police). This was a major finding of the latest Association of Certified Fraud...
As more people use mobile phones, more fraud perpetrators target these devices. According to Javelin Strategy & Research, between 2017 and 2018 the number of fraudulent mobile-phone accounts opened grew by 78 percent. Schemes in which thieves open a phone account in your name and...
If you are like most business owners and executives, you may not actively search for fraud risks — until there is an incident and you are facing possible losses. Although publicly traded companies must conduct fraud risk assessments, privately held businesses do not have the...
Background checks do not inoculate companies against occupational fraud and other criminal acts by employees. After all, many thieves have never been caught and, therefore, have no criminal background. But conducting checks on potential workers remains critical. If you are hiring an accounting staffer, for example,...
It is a federal crime to steal trade secrets, but that does not stop thieves from successfully making off with billions of dollars in intellectual property (IP) annually. Companies may work hard to prevent outsiders from infiltrating their organizations, yet the greater danger is generally...
Fraud experts have long known that ‘dark web’ sites provide information, support, and illicit goods to hackers and other criminals. But security company Terbium Labs (Terbium) recently published a report analyzing a treasure trove of fraud guides for sale on shady sites. These ‘educational’ publications...
When businesses are defrauded, courts can — and in some states must — order restitution. However, it is not always easy for judges to decide how much a company has lost. That is where fraud experts can help. Benefit of the bargain At first glance, calculating restitution...
Data analytics is changing the way many businesses operate. It also is changing how forensic accountants do their jobs, providing fraud experts with the means to mine massive mounds of data like never before. Three techniques These analytical techniques are among the most efficient and effective at...