Fraud Awareness Tip of the Week Corruption fraud schemes account for 33% of all workplace fraud and the average fraud loss due to organizations is $200,000. Industries such as construction, manufacturing, financial and professional services are more susceptible to this type of fraud and far exceed these statistics. Most corruption fraud schemes occur outside the… Read More »
Category: Fraud Tips
10 Red Flags of Payroll Fraud
Payroll Fraud Payroll fraud occurs nearly twice as often in small organizations with less than 100 employees than in large companies. The average instance of payroll fraud lasts about 30 months. This occurs because many business owners do not take time to review the payroll ledgers. All to often the person entering in the new hires… Read More »
Fraud Tip of the Month
Billing Fraud Schemes Fraud of any nature can quickly drain company profitability. Billing schemes account for 28.7% of all fraud and is one of the more common types of schemes we see in organizations. In smaller organizations, billing schemes are easy to pull off due to the lack of separation of duties or management oversight.… Read More »
How Corporate Culture Can Prevent Fraud
Did you realize that companies that create a positive culture and ethical management style could prevent fraudulent activity? Fraud prevention is greatly reduced when upper management establishes a proper ethical code of conduct valuing integrity, encouraging open and honest communication. Surveys conducted to measure employee satisfaction show that those employees happy with company culture are less… Read More »
Expense Fraud is Costly but Preventable
It is just a few dollars here and there, right? An employee may take a carefree stance on the use, or in this case misuse of employee funds from time to time, but expense fraud is a crime. And it is more than a few dollars on simply an accounting or human error. The median… Read More »
Fraud Training in the Healthcare Industry
The healthcare industry, in its unique regulations, systems, procedures and records, is plagued by an estimated $80 billion a year in fraud (according to the FBI). Healthcare fraud training will ensure your staff knows the warning signs and what action to take if fraud is suspected. It would be ideal to have all managers and… Read More »
Why the Healthcare Industry Can not Afford Vendor Fraud
Between 1990 until a few years ago in 2011, the Justice Department reclaimed nearly $3 billion from prosecuting fraudulent activity in healthcare. Millions more was never recovered. Don’t think your practice could be a victim? Even with internal measures in place vendor fraud can still happen. Vendor fraud can take on many forms. Fictitious vendor… Read More »
Kickback Schemes are Devastating to a Non-Profit
Non-profits must follow strict measures to stay in compliance with non-profit status. Fraudulent schemes can hurt those efforts to maintain an ethical, well-respected non-profit. A kickback occurs when an organization overpays for goods and services, and a vendor gives part or all of that overpayment to the perpetrator. Unfortunately, it is often not difficult for… Read More »
How to Stop a “Non-Accomplice Vendor Scheme”
How easy is it to steal from your company? Savvy and dishonest employees may easily exploit internal weaknesses by running a “non-accomplice vendor scheme.” The vendor is not a part of the scheme, but the unscrupulous employee will mastermind a vendor scheme either as a pay-and-return scheme or by intentionally overbilling the vendor. In the… Read More »
How Much are You Paying the Ghost Employee on Your Payroll?
Ghost employees can siphon mandatory resources from otherwise productive businesses. Unfortunately, trusted employees using sophisticated payroll systems are the culprits of the most costly frauds. The ghost employee is an individual on the company payroll who does not work for the company. This “ghost” may be real (and may even work for another company) or… Read More »