Scammer epidemic

Business Trips ... Fraudulent Pleasures

For many organizations, business trips have been a permanent headache and source of economic losses due to the lack of clear controls and policies regarding the type of expenses and the amounts authorized by the corporation.

We know well that organizational abuse encompasses actions that have the purpose of personal enrichment through the inappropriate use or theft of resources or assets of the organization by a person. In most cases, people who take such resources consider that their actions are ethical given that the company has paid for such resources or because they are considered as expenses.

The abuses are detected through well-classified and detailed financial statements. With these tools, the company can yield valuable information about the movement of cash. A typical example is the travel expenses.

Most companies only evaluate travel and representation expenses on the basis of common sense. However, since there is minimal control, more in depth techniques most be used to detect fraud. The duplication of invoices trip after trip, use of the copy and original of the documents, duplication of expenses, alteration of values, fictitious expenses, payments in cash and by credit card, among others are simple examples that a highly creative employee can use to take advantage of the resources of the organization through business trips that become pleasure trips.

However, this type of practice is even more dangerous with staff or high-level executives whose salaries and allowances are far from the expectations of any minimum wage. Although this behavior should be a surprise, this white collar fraud is frequent.Remember that the statistics regarding white collar fraud in organizations show a strong correlation between higher salary and greater losses due to fraud. 

Therefore, to avoid any anomalies, misunderstandings, errors, excuses, and unnecessary explanations related to business trips, companies must have clear policies as well the type of document or support to be reimbursed. Likewise, this policy must be made known from the beginning of the employment relationship and for all employees regardless of if they are scheduled for future trips.

Avoid loose ends in business trips, and do not allow the employee to have control over the most representative expenses such as lodging and air transportation. It is the obligation of the company to know the places where the employee or executive will be hosted and the transportation company where he / she travels. Preferably, a company should have a department or 3rd party that manages travel.

Rules and limits about family members or companions must be included in the travel policy. Similarly, the extra time that employees can take outside of work activities should be considered within travel policies because this time is not related to their services and therefore the status of employee insurance must be adjusted. Accidents and tragedies happen every day; therefore, the company must know the risk when an employee is representing the organization and when the same employee takes advantage of the trip for personal activities.

The documents for business trips should be standardized in the travel policy as well as the types of approval for reimbursement. The limit of the daily expenses of food and urban transport must be determined to avoid cost overruns. These policies should also extend to client interactions. Additionally, all client expenses must be in accordance with global and local regulations to avoid any possibility of corruption.

Between business and pleasure there is a thin line that abusers constantly manipulate to take advantage of both time and money. Hence, the policies for business trips and filing expenses must incorporate strong sanctions and zero tolerance for any act that denotes fraud. Such policies must be complied with and exemplified by all personnel of the organization without exception, since the perception of control must be stronger than the pleasure of committing fraud.

Editor: Christopher Bonk

Thinking the unthinkable ... Trash as a tool to commit fraud

Our background in careers such as Accounting, Law, Auditing or Administration, has given us relative technical knowledge related to our work to help organizations to implement or improve internal control systems. A constantly changing legal and work environment forces us to stay on our toes and adapt. Likewise, a professional who is 100% related to risk management should be ready to think outside the box to anticipate changes in criminal strategy and behavior.

The perpetrators innovate and create new mechanisms to commit fraud and are always looking to exploit the gaps or weaknesses of internal control to achieve their objective. The theft of inventory and supplies is one of the criminal activities that retail companies suffer the most from. This is usually conducted as an inside job where workers collaborate with an external third party. Inventory, materials, and information can all be extracted from the company's facilities through transporting carts, hidden in wallets, attached to the body, and often in the garbage.

Do you as an Auditor check the garbage of the organization? Have you stopped to verify what happens when the collector car arrives at the company? Do you know who receives the recyclable material or who manages the final disposal of garbage in the organization? Although at surface level this seems to be a totally bizarre issue, the disposal of garbage can be the key to either the commission or prevention of fraud.

The disposal of garbage and recycling are two activities or areas loved by few but embraced by the perpetrators because it is not audited or controlled. If at any time you do not find the answer to the theft of inventory or the losses of cleaning supplies and office materials, I suggest you examine the garbage and recycling.

It is important to know who is responsible for the disposing process and what relationship or relationships they have with the inventory personnel.

In summary, use the following tips to safeguard your company:

Check the schedules and personnel of the collector cars

Audit the contents of garbage by opening bags and boxes, and prepare for surprises in what you might find

Look for documents, CDs, hard drives, USB’s, since an escape of information can also happen through the disposal of garbage.

Check how the recyclable material is processed by examining internal and external personnel, periodicity, type of transaction, among others.

Trust your intuition if at some point something in the garbage smells bad.

Edited by Christopher Bonk

Perfil en Facebook: Edward Scout con fotos de Dragan Šutanovac

Perfil en Facebook:  Edward Scout con fotos de Dragan Šutanovac https://www.facebook.com/edwardscout8?fref=%2Freqs.php

Perfil en Facebook:  Edward Scout con fotos de Dragan Šutanovac https://www.facebook.com/edwardscout8?fref=%2Freqs.php

Perfil creado en Facebook con las fotos de Dragan Šutanovac quien es un político de Serbia, del cual pueden encontrar la información fácilmente.

Este perfil tiene fotos y comentarios de personas que no tienen relación con Edward Scout o Dragan Šutanovac. Igualmente pueden verificar la información.

El perfil real del político Dragan Šutanovac es: https://www.facebook.com/dragan.sutanovac

Por favor compartir esta información, alguien la está necesitando.

Mi misión es promover la prevención y recuperar la dignidad.

Human Resources: The cornerstone of deterrence

Human talent or human resources departments, is the cornerstone of corporate fraud prevention. The selection of the ideal employee has to go beyond the subjective search of suitable candidates who meet the technical and intellectual conditions of the position to be filled. The analysis of the physical and mental aptitudes of the applicants through interviews and tests are in many cases more important than the technical requirements to determine that a person's character aligns with the corporation's values. This search must be the first deterrent against fraud. 

As is well known, the human factor is fundamental for business development. Although the means of production are increasingly automated or robotized, labor and talent continue to strengthen industries throughout the world. On the other hand, business success is tainted by those who somehow let themselves be conquered by anti-values ​​and act against the organization to feed their pockets fraudulently. That is why fraud prevention programs must include the processes of recruiting, selecting, and hiring employees. The dissuasion of fraud begins with the first moment of contact that the job seeker has with the company; an atmosphere of total control and a strong attitude towards fraud are the basic tools of deterrence.

We all know perpetrators are in all spheres and do everything necessary to break the rules with the sole purpose of increasing their assets and sustaining their life style. Offenders monitor and detect the opportunities, deficiencies, and lack of control of their target. Their keen sense of smell and instinct to detect lax controls help them to create the necessary strategies to take corporate money and resources for their own gain. Fraudsters have no scruples, and in many cases, they look for companies with administrative and financial deficiencies; a perpetrator targets and profiles their victim carefully. Nevertheless, how can a businessperson protect his or her organization through Human Resources or contracting department?

The Internal Labor Regulation is the most basic and well-known tool in the world of work. Its wording should contain fundamental aspects related to corporate fraud and the risks to which the company is exposed in these types of issues. That is to say, that the Code of employees should not be the simple and traditional compilation of clauses or articles related to labor. The code of employees must be aligned with good corporate governance and an environment of control where the relationship between the company and the new employee must be based on zero tolerance to fraud. For instance, the implementation of fraud programs through guidance, oversight, and risk control discourage job seekers and new employees to commit fraud. Additionally, an environment of control based on ethics and transparency across the organization helps to retain employees who are committed to the core values of the company.

The risk management program is another advanced resource that helps to shield the company from catastrophic economic and reputational damage. In business, it is cheaper to prevent rather to correct. This philosophy directly applies to fraud prevention as well. Thus, a corporation must implement an Internal Work Regulation or code of employees that defines strict punishment for fraud in the corporation. Furthermore, the processes of recruitment, selection, and hiring of personnel that are developed by Human Resources should be the cornerstone of any fraud prevention program so that the anti-fraud attitude becomes a working lifestyle for everyone in the corporation.

Editor Christopher Bonk

Desolación y fraude después de la muerte

Quizás uno de los momentos más difíciles que cualquier ser humano puede vivir es la pérdida de un ser amado. Para muchos la tristeza y el dolor invade todos los espacios, y aunque para otros puede ser el alivio de un largo sufrimiento, el vacío tanto espacial y legal no dan espera. Uno de los abusos o fraudes más comunes pero de los que poco se habla es el arreglo de los aspectos legales del difunto. Historias van y vienen de personas muertas que reviven con deudas, las cuales deben ser pagadas por sus familiares. Préstamos personales, fiados, activos no pagados, hipotecas no protocolizadas, arreglos privados en cualquier trozo de papel, entre otros son la punta del iceberg de los fraudes que se cometen con los muertos.

La industria criminal no perdona ni respeta, y la pérdida de un ser amado no es la excepción de los perpetradores que se dedican a monitorear a los fallecidos de la semana para solidarse con la familia y no precisamente para ofrecer total respaldo. Este tipo de criminales son aves de rapiña del dolor ajeno que con astucia y falsa empatía se acercan a la familia doliente para expresar sus condolencias y de paso actuar. Durante el funeral, este tipo de perpetradores comienza la debida diligencia, acercándose al círculo más alejado de familia y amigos para indagar por información y poco a poco llegan a los dolientes más cercanos de quienes abandonaron este espacio terrenal. Popularmente se dice que no hay muerto malo, de ahí que cuando el perpetrador contacta a la familia más cercana tiene suficiente información para con nombre propio expresar sus más profundas condolencias por la reciente pérdida.

Pocos días después y con la información recogida, el perpetrador comienza su práctica desalmada de cobrar una deuda inexistente y con documentos que en muchos casos son falsos. Este tipo de fraude tiene muchas aristas, ya que dependen de la información recolectada en el funeral, tipo de familia y pasado del difunto. Los reclamos comienzan simples y amistosos e incluso con empatía, y de acuerdo al nivel de aceptación y convencimiento, las conversaciones se tornan cada vez más ásperas y exigentes con el único propósito de presionar el pago en medio de la crisis.

La debilidad en este tipo de fraudes comienza cuando se sabe poco de la vida personal, legal y económica de quien muere. En muchos casos, los miembros de una misma familia ocultan sus actividades por múltiples razones. Incluso es común saber que entre ciertas parejas hay recelo para revelarse aspectos económicos y legales, lo que conlleva a nadar en una mar de sorpresas con un traje de baño llamado vulnerabilidad.

Para evitar este tipo de crisis le recomiendo algunos tips que usted puede implementar inmediatamente:

• Legalice documentos de compra-venta, préstamos, hipotecas, y demás documentos a través de autoridades locales o notarios de su ciudad.
• Si sus documentos requieren testigos, escoja personas cercanas a Usted que puedan esclarecer cualquier situación cuando se requiera.
• Mantenga sus documentos personales organizados en un solo lugar. Prepare notas sobre dichos documentos o cambios que se deben hacer en el tiempo.
• Su familia merece saber la verdad, pero en caso de que no desee revelar su vida económica y legal, implemente una estrategia con la cual se puedan aclarar tales aspectos cuando Usted muera o incluso en una enfermedad en la que Usted no pueda actuar.
• Tenga sanos hábitos de pago y use entidades conocidas para establecer su crédito financiero.
• Adquiera sus muebles y electrodomésticos en almacenes conocidos con amplias formas de pago.
• Tenga un abogado y/o contador de confianza que conozca sus movimientos legales y estrategias para actuar en caso de su ausencia.
• En caso de que Usted sea el doliente, comuníquele a su familia y amigos sobre la situación de presión por la que está pasando y permita que ellos le ayuden a esclarecer las peticiones del perpetrador. Incluso dudar de la meticulosidad del fallecido o deudor sobre su práctica de pagos ayuda a desestimular al criminal. 

No deje cabo suelto para los perpetradores que asaltan la buena fe y abusan del dolor que genera una pérdida. Su patrimonio y legado merece ser cuidado por sus familiares o por quien Usted designe. Entre mejores canales de comunicación Usted tenga, menor es el posibilidad de que un perpetrador abuse sus seres amados en su ausencia. Edúquese sobre fraude y cómo un perpetrador puede arruinar el futuro de sus familiares. Cierre las puertas de la vulnerabilidad y abuso antes de morir en paz.