Exposing Fraud - Skills, Process and Practicalities

Foreword by James D. Ratley, CFE, President and CEO, Association of Certified Fraud ExaminersBeyond the basics--tools for applied fraud managementIn Exposing Fraud: Skills, Process, and Practicalities, anti-fraud expert Ian Ross provides both ideas and practical guidelines for applying sound techniques for fraud investigation and detection and related project management. The investigative principles in this book are truly universal and can be applied anywhere in the world to deal with any of the range of fraud types prevalent in today's business environments. Topics covered include cyber fraud, the psychology of fraud, data analysis techniques, and the role of corporate and international culture in criminal behavior, among many others. Ensure an optimal outcome to fraud investigations by mastering real-world skills, from interviewing and handling evidence to conducting criminal proceedings.As technologies and fraud techniques become more complex, fraud investigation must increase in complexity as well. However, this does not mean that time-tested strategies for detecting criminals have become obsolete. Instead, it means that a hands-on approach to fraud detection and management is needed more than ever. The book does just that:* Takes a unique practical approach to the business of detecting, understanding, and dealing with fraud of all types* Aids in the development of key skills, including conducting investigations and managing fraud risk* Covers issues related to ethically and efficiently handling impulsive and systemic fraud, plus investigating criminals who may be running multiple scams* Addresses fraud from a global perspective, considering cultural and psychological factors that influence fraudstersUnlike other fraud investigation books on the market, Exposing Fraud develops the ethical and legal foundation required to apply theory and advice in real-world settings. From the simple to the complex, this book demonstrates the most effective application of anti-fraud techniques.

List of contents

Preface xiiiForeword by James Rately xvAbout the Author xviiAcknowledgements xixStructure and Method of the Book xxiOpening Thoughts xxiApproaching Counter?]Fraud Work xxiiChapter Specifics xxiiFinally xxiii1. Cutting through the Maze 1Introduction 11.1 What is Fraud? The Most Debated Question 2Perceptions and representations of fraud 4Definitions, key distinctions and informing elements 6The mens rea of Fraud 6Misrepresentation. Practicalities 7Conveying the misrepresentation 7Definition of fiduciary duty 81.2 Other Distinctions 9Intent 9The difference between 'misrepresentation' and a hoax 101.3 Lying, Fraud and the State of the Mind 10Lying and the problem with words 11Ethnicity misunderstood: the chasm between belief and actual criminal deception 131.4 Cutting through the MAZE 14'The Three Cs' 141.5 Distinguishing and Overlapping: Fraud and Money Laundering 17Money laundering: the mens rea 19'Politically Exposed Persons' - a reference 22Trade?]based money laundering 231.6 Now Adding Corruption ... Linking to Fraud 25Key distinctions (fraud and corruption) 25Coercive practices 27Collusive practices 271.7 Legislation Summary 27Definitions: Comparatives 28Africa - Middle East - Malaysia - South Africa 28Sharia law 29The role of Sharia principles regarding the choice of governing law 30Insurance and the law: a special mention 31The United Kingdom Fraud Act 2006 33Bribery Act 2010 (UK) 34United States - Definition of Fraud 35Foreign Corrupt Practices Act 1977 (FCPA) 36Sarbanes-Oxley Act (USA) 36Dodd-Frank (USA) 36Other Fraud Related Legislation 371.8 Evidence 37Evidence - law in itself. Not a 'free for all' game to ensure prosecution 37Basic Principles of Evidence for Fraud Investigators 38Format 38Evidential sources, classification and practicalities 38Evidence (definition) 38Burden of Proof: Criminal 39Burden of Proof: Civil 40Criminal Evidence 40Direct 40Primary and secondary 41Circumstantial 41Hearsay 42Forensic 42Other fraud?]relevant incidental evidence 44Electronic (digital) evidence 44'Volatile' Data 44Witness Testimony 45Whistle blowing - witnesses nonetheless. 50Whistle?]blower Retaliation and Criminal Charges 50Expert Witnesses. Who are they? 50Accreditation and representation 51Chapter Summary 532. Concepts and Dynamics of Fraud 55Introduction 552.1 Costs of Fraud - Including the Hidden Ones We Don't Like to Mention 562.2 It is Not Enough to Know 'What Fraud is' - Know Your Business! 592.3 The Varying Psychologies of Fraud 65Why fraud is unique as a crime 65Victims and 'victimhood' (in fraud) 65A cluster of informative dogmata to help to advance conceptual thought of fraud and fraud offenders 68Important Distinction 68Two distinctly different approaches to fraud offending 68Narcissist leadership and inevitable Fraud 70Impulsive fraud 70Impulsive Decision Making and Working Memory 72Systemic fraud 73The Difference between Fraud and Mistake, Under the False Claims Act 76'Organised' fraud? 77Fraud offender profiling 79Profiling: where it lies in fraud 79Profile differences between theft and fraud offenders 81Why do 'good people' do bad things? 82Predictive modelling? 842.4 Contexts, and Leading to Cross?]Activities of Fraud 85Golden Rule: Follow the behaviour, not just the 'type' of fraud 85Financial Fraud - corporate contexts and entities 86Business Assets 86Intangible Assets and Intellectual Property Theft 86Intellectual Property Theft 87Trade Secret Theft and Corporate Espionage 88Financial Statements 90'Beneish Model' 95Accounting 96Other Fraud Attacks against Banks 101Shell Companies 102Ghost Employees 103Inventory Shrinkage 104Fraudulent Conveyancing 104Procurement - a mains scenario reconciling fraud and corruption 105Procurement - Fraud Definitions: Recap 106Healthcare 112Other instances of Healthcare fraud 113Insurance 115Telecom fraud 117Revenue Share Fraud 118Subscription Fraud 119Premium Rate Service Fraud 119Interconnect Fraud 119Interconnect bypass - also known as GSM Gateway or 'SIM Box' fraud 120Prepaid Fraud 121Fraud Directly Funding Terrorism 121Cyberterrorism 125Stand?]alone or peculiar fraud cases of note 1262.5 Cybercrime and Fraud 129Cybercrime: A new presence of fraud in the 21st century 129Hacking 129Alerts and triggers and 'Big Data' 131Phishing and Internet fraud 132List of phishing activities 134Bitcoin and cloud currency: Vulnerabilities 134Social Networking as a 'Facilitator' of Fraud 136Privacy First: 136How do online 'social communities' work? 137Victims becoming Fraudsters 138Safety Culture 138Preventative Measures: PracticalitiesNever give out your social security number 138Fraud viz?]a?]viz Social Networking 139Appendix to Chapter 2--Business Terminology 1413. From fraud awareness to 'risk' - a professional step 143Introduction 143Wake up Call - Impactive Case Study 1443.1 Beyond the Definitions 147Rational choice theory 147The Fraud Triangle 147Who Commits Fraud? 148Risk assessing as opposed to investigation: The difference 148Fraud Risk Assessment 148Right to Audit Clauses 149'Pseudo?]stability' 149Handling intelligence. Handling information 1504. Exposing Fraud: Fraud Investigation at Work 153Introduction 1534.1 What is an Investigation? 154Investigation work: Is it really for you? 155Comments on the questions in Self?]assessment 1: Investigation Notions 157Comments on the questions in Self?]assessment 2: Avoiding Stereotyping 158Do you think that there is a place for psychometric testing in our profession? 160Keeping a 'Learning Log' 160Formats 161About Roles (and job titles) 162Auditors 162Internal Control 164Risk Managers 165Journalists Informing Investigation 165The 'psychological contract' 1664.2 Formalities and Investigation Goals 167The Truth, but which version? 168Versions of the 'Truth' 169How far do you go in an investigation? 1694.3 Identifying the Essential Skill Set of the Fraud Investigator 170Particular Talents and Skills 172Where skill goes hand in hand with training 172Advancing Skill: Lateral and Cognitive Thinking 177Lateral Thinking Exercise (1) 180Lateral Thinking Exercise (2). Fraud 180Memory. The better half of intelligence 181Memory Training 181Observing Ethical Behaviour - not a rule, but a way of life! 182Keeping an Investigations Log - a must! 1834.4 'Hands?]On' 184'Respond' - Do Not React' 184Knowing where to start 188The 'capability list' 189Investigative Interviewing 190The PEACE Model 190SE3R - a tool of interviewing excellence 195'PEACE,' 'SE3R' and Identifying Unique Knowledge. 202Resourcing 203Scenarios 205Unfamiliar cases 207Catching the co?]accomplices as well! 209Using IT to inform fraud investigations effectively 210Data Analytics: Fraud 211Data Mining 211Data Analytics in Investigations 212Associates and Mapping 2124.5 Management of Investigations 213Baselines of Investigation Planning 213Receiving a case from someone else, or handing a case on 214Managing a fraud investigation's caseload 215Setting simple and clear team or organisational counter?]fraud efficiency 216Team building skills are crucial to ensure effective investigations 217Team Objectives of Fraud Investigation and Prevention 2174.6 Assessing Your Skill Set 2181 Appraising information 218The Analytical Mind - Preparing Yourself 218Appendix A: Sample response to Skill Assessment 2244.7 Investigation Outcomes 226Report Writing 226Main Points of Note: 226Avoiding 'bad duplicity' 227Structures and Formats 227'Content Not Form' 227How are reports read? 227SAMPLE REPORT STRUCTURE 2285. Training and Education 2295.1 Training: What does it Mean to You? 229Introduction 229Academic Qualifications 230In?]house training 230Professional Accreditations: Fraud specific and collateral qualifications 2305.2 Preparing Yourself for Exams 231Multi?]choice exams 231Multi?]choice questions - Specific Guidance 231Essays 233Typical Essay Questions ?] Evaluation Format 233'Problem' or scenario questions. The 'IDEA' method 235Final Summary 241Bibliography 243

About the author

Ian Ross has been researching and writing about the later Roman world and its army for over a decade. He spent a year in Italy teaching English, but now lives in Bath.

Summary

Foreword by James D.

Product details

• Authors: Jose Chacko, Ian Ross, Ian Chacko Ross
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 30.10.2015
• EAN: 9781118823699
• ISBN: 978-1-118-82369-9
• No. of pages: 280
• Series: Wiley Corporate F&A; Wiley Corporate F&A (Hardcover; Wiley Corporate F&A
• Subject: Social sciences, law, business > Business > Individual industrial sectors, branches