March 5, 2010

Three Best Ways to Catch an Employee Thief

"Employee fraud can take place right under a business owner's nose. According to the Association of Certified Fraud Examiners, an anti-fraud trade group in Austin, Texas, such activities occur on average for as long as two years before the victim organization catches on."

- The Wall Street Journal

March 4, 2010

Business Owners Get Burned by Sticky Fingers

"'More times than not, it's the most trusted person in the office who's perpetrating the fraud,' says James D. Ratley, president of the Association of Certified Fraud Examiners. The Austin, Texas, trade group estimates that employee frauds at businesses with fewer than 100 employees cause a median loss of $200,000 -- $57,000 more than the median losses that larger organizations suffer."

- The Wall Street Journal

March 1, 2010

States May Ban Credit Checks on Job Applicants

"Aitken pointed to a 2008 survey by the Association of Certified Fraud Examiners that found the two most common red flags for employees who commit workplace fraud are living beyond their means and having difficulty meeting financial obligations. The same survey estimated American companies lost $994 billion to workplace fraud in 2008."

- Seattle Post-Intelligencer

Feb. 27, 2010

Thefts by Employees a Big Problem Made Bigger in Hard Times

"Allan Bachman, the education manager for the Association of Certified Fraud Examiners, last week called the situation 'almost a perfect storm' as companies that are trying to weather the recession eliminate protective measures."

- Kansas City Star

Feb. 14, 2010

Norwalk Detective on a Mission to Stop Fraud

"Norwalk's elderly residents are falling prey to scams that bilk them out of thousands of dollars, but Norwalk Police Detective William Maloney recently gained a few new tools to fight financial fraud. Maloney strengthened his knowledge of financial scams and became a Certified Fraud Examiner on Feb. 5 after finishing a yearlong correspondence course with the Association of Certified Fraud Examiners, a well-regarded anti-fraud law enforcement training program.'The amount I learned was phenomenal,' he said."

- The Hour (Connecticut)

Feb. 7, 2010

How to Avoid Hiring a Bad Egg

"Small businesses, unfortunately, are particularly vulnerable to embezzlement and other kinds of employee theft because they lack the checks and balances of big corporations. One report by the Association of Certified Fraud Examiners found that the median loss for small firms with fewer than one hundred employees was $190,000. The most common schemes? Employees fraudulently writing company checks, skimming revenues and processing phony invoices."

- The Wall Street Journal

Jan. 31, 2010

'Be More of a Business and Less Like a Family': Fraud the Penalty for Youth Sports Groups' Trust

"A 2008 study done by four University of Dayton professors estimated nonprofit fraud at about $40 billion in 2006, based on estimates from the Association of Certified Fraud Examiners that all organizations - nonprofit, for-profit and governmental - lose on average between 5 percent and 6 percent of their revenue to fraud each year."

- Crain's Detroit Business

January 2010

What's Your Fraud IQ?

"Cooking the books. Fudging the numbers. Taking a big bath. Thanks to myriad high-profile cases of financial statement fraud, phrases like these have become familiar jargon for the investing public. Likewise, most CPAs are acutely aware of the fine line separating aggressive earnings management from earnings manipulation. But how well-versed are you in the red flags of falsified financial statements?"

- Journal of Accountancy

Dec. 10, 2009

Businesses Can Protect Themselves Against Fraud

"More businesses have been and will be affected by fraud during the past and coming year due to the economic environment, according to an Association of Certified Fraud Examiners June 2009 study. Why? In a recession, businesses may be more vulnerable in all areas of the "fraud triangle": incentive, opportunity and rationalization."

- Kansas.com

Dec. 3, 2009

India's Forensic Auditors Join the War on Fraud

"The 50,000-member ACFE, headquartered in Austin, Texas, calls itself the world's largest anti-fraud organization and a leader in anti-fraud training. In the US alone, fraud cost companies an estimated $994 billion last year, according to the industry body."

- Asia Times

Nov. 11, 2009

ACFE Warns Not to Change SOX Rules

"A measure approved last week by the House Financial Services Committee to change Sarbanes-Oxley audit rules would lead to a higher incidence of fraud and an increase in the amount of fraud losses, said the Association of Certified Fraud Examiners."

- WebCPA

Nov. 11, 2009

Internal Fraud Investigations: The Risk and Reward of Third-Party Involvement

"According to the Association of Certified Fraud Examiners (ACFE) 2008 Report to the Nation, the typical length of fraud incidents reported lasted two years from inception to detection. So any fraud uncovered may just be the tip of the iceberg and merely dismissing the employee would leave several unanswered questions."

- Corporate Compliance Insights

Nov. 9, 2009

Hey! Did You Know, It's International Fraud Awareness Week?

"And did you also know that employees pose the biggest fraud threat in the current economy? This week, more than 200 organizations worldwide are partnering with the Association of Certified Fraud Examiners to shine a light on how white collar crime spreads during time of economic crisis."

- WebCPA

Nov. 8, 2009

Fraud Awareness Week Casts Spotlight on White Collar Crime

"More than 200 organizations worldwide have partnered with the Association of Certified Fraud Examiners (ACFE) to support International Fraud Awareness Week, Nov. 8-15, 2009 and host anti-fraud training events, distribute information and help cast a spotlight on the threat of occupational fraud and white collar crime."

- SmartPros

Nov. 6, 2009

As Economy Falters, Employee Theft on the Rise

"Nationally, the Association of Certified Fraud Examiners estimates that American businesses lose 7 percent of their annual revenue to internal fraud, a percentage that pencils out to hundreds of billions of dollars a year. Small businesses are especially vulnerable, as fewer employees mean fewer eyes on the books tracking how money comes in and goes out. And business owners have indicated in recent national surveys that they expect fraud will increase."

- Las Vegas Sun

Nov. 6, 2009

JP Morgan Said to Detect Kiener Scam That Stung Banks

"'When the economy is flourishing, money is easy' for hedge funds, said James Ratley, president of the Association of Certified Fraud Examiners in Austin, Texas. A scheme can be 'hidden just beneath the paperwork. It’s the skin of truth stuffed with a lie.'"

- Bloomberg

Oct. 28, 2009

Accounting Irregularities May be on the Rise in U.S.

"'Statistically you can show any time you have a recession or some type of tremendous decline in an economy you're going to see financial pressures on companies,' said Bruce Dorris, program director at the Association of Certified Fraud Examiners, noting that corporate employees can sometimes be motivated to be overly aggressive with accounting or commit outright fraud to meet targets, particularly in difficult economic times."

- Reuters

Oct. 13, 2009

The Destructive Force of Private Sector Corruption

"The incidence of private sector corruption has become a major issue facing many advanced economies as corporate crimes have in recent times rocked economies across the western hemisphere... As at 2005, it was estimated that the total cost of employee fraud or white collar crimes to public companies in the United Kingdom was up to 2 billion British Pounds. In the case of the United States, a 2006 report of the Association of Certified Fraud Examiners estimated that more than $600 billion is lost through white collar crimes."

- Business Day

Oct. 9, 2009

Financial Fraud - Accounting for Criminals

"While there are no international statistics charting white-collar crime arrests, the number of people being trained to detect accounting shenanigans has exploded since the financial crisis. The U.S.-based Association of Certified Fraud Examiners, which trains accountants in fraud investigation, has 47,000 members worldwide -- adding 10,000 new members last year alone."

- CNN

Sept. 14, 2009

Occupational Fraud a Genuine Risk to Your Business

"The Association of Certified Fraud Examiners estimates that U.S. businesses lose up to 7 percent of their annual revenue to fraud, often in the form of misappropriation of assets and corrupt activity, such as kickbacks. Applied to the 2008 U.S. Gross Domestic Product, that translates into approximately $994 billion that was siphoned away from businesses last year alone, by the very people who are supposed to be helping bottom lines, not hurting them."

- Hartford Business Journal

September 2009

What's Your Fraud IQ?

"How well do you know the signs and symptoms of employee embezzlement? Do you know what to do when you suspect an employee is stealing? Take this quiz to gauge your knowledge of the red flags and investigative methods for internal fraud."

- Journal of Accountancy

August 25, 2009

Downturn "Likely to Increase" Company Fraud

"There was 'most definitely' a likelihood of an increase in internal company fraud in the economic downturn, Deloitte’s Graham Dawes said yesterday. Dawes, speaking at a conference of the Association of Certified Fraud Examiners, drew on a number of statistical “key indicators” to support his view, saying there had been a 'radical upturn' in household debt recently, with households spending 80% of their disposable income to service their debt, leaving only 20% of income to live on."

- Business Day (Johannesburg)

August 8, 2009

For Group of Skeptics, the Truth is Out There

"Last month, more than 2,000 accountants, auditors and attorneys who run their own investigative firms met in Sin City to compare tips for rooting out wrongdoing and to identify fertile ground for future scandals... The group, the Association of Certified Fraud Examiners, said it has 47,000 members, up more than 25% in the past few years. They feted Harry Markopolos, a Boston investigator who for years tried in vain to persuade regulators that Mr. Madoff was a scam artist."

- The Wall Street Journal

July 23, 2009

Fraud Risk Increases in Difficult Economy

"Based on Occupational Fraud: A Study of the Impact of an Economic Recession, published in 2009 by the Association of Certified Fraud Examiners, the level of fraud has increased, both in frequency and dollar amount, since the beginning of the economic crisis.... The study found that 55.4 percent of respondents had found either a "slight" or "significant" increase in the instances of fraud since early 2008..."

- Business Lexington

July 17, 2009

Surge in Fraud, Recession Thrust Forensic Accounting into Spotlight

""There are plenty of bad guys for them to chase. Across the country, organizations lose an estimated 7 percent of annual revenue to fraud, according to a survey by the Association of Certified Fraud Examiners, based in Austin, Texas."

- Columbus Business First

July 13, 2009

Tips on Curbing Corporate Fraud

"In 2008, U.S. corporations lost an estimated $994 billion due to occupational fraud, according to the Association of Certified Fraud Examiners. To help curb such fraudulent activities, which often become more prevalent during hard economic times, Crowe Horwath professionals recommend companies assess their risk and put measures in place to minimize losses."

- WebCPA

July 13, 2009

Despite Slowdown, Accounting Salaries Rising

"Amid economic uncertainty, experts anticipate a rise in fraud. Occupational fraud cases in U.S. organizations are already estimated at $994 billion annually. Compounding the problem, the intense financial pressure of the economic crisis has led to an increase of fraud, according to a survey of fraud experts conducted by the Association of Certified Fraud Examiners (ACFE). As a result, forensic accountants are in growing demand to look behind the numbers and see what they really are."

- A.E. Feldman

July 7, 2009

$65 Billion Stolen by Madoff? Hardly

By Joseph T. Wells, CFE, CPA

"What has been lost in the hysteria of the largest fraud in history is that the lion’s share of that money doubtlessly went to investors who did not show up in court to demand Madoff’s maximum punishment. Why would they? They’re laughing all the way to the bank because these investors were paid off early in the Ponzi scheme."

- WebCPA

July 6, 2009

How to Stop Fraud

"These days, when employers are cutting salaries, staff and bonuses—and staff is uncertain about the next round of layoffs—more employees are committing fraud, according to a study by the Association of Certified Fraud Examiners. More than half of fraud examiners surveyed said that the level of fraud has slightly or significantly increased in the previous 12 months compared to the level of fraud they investigated or observed in years prior."

- CSO

July 1, 2009

Cloudy Forecast for Ethics

"For proof, the couple point to the 2008 Report to the Nation on Occupational Fraud and Abuse, by the Association of Certified Fraud Examiners. The Austin, Texas-based group compiled data from 959 cases of occupational fraud between January 2006 and February 2008, and estimated that affected companies lost nearly $1 trillion to fraud."

- Human Resource Executive Online

June 29, 2009

Fraud High on Corporate Agenda, Opportunities Growing

"As these massive instances of fraud took place right under the noses of experienced investors and regulators, the Association of Certified Fraud Examiners (ACFE) argues corporate executives and management should now be tackling the issue of fraud in their own companies."

- A.E. Feldman

June 29, 2009

Banks Target Economic Crime

"The seminar, by the Association of Certified Fraud Examiners aimed to train and inform fraud investigators of new development and trends in relation to commercial crime."

- Independent Online, South Africa

June 7, 2009

Trapped: It's Hard to Get a Job if Your Credit is Bad

"Small companies often have one person doing multiple jobs and don't have the same internal controls required by large, publicly held companies, says Scott Grossfeld, chief executive of the Association of Certified Fraud Examiners (ACFE) in Austin, Texas. An ACFE study covering 959 cases of "occupational fraud" (meaning the kind that transpires at work) between January 2006 and February 2008 suggests that U.S. businesses lose, on average, 7% of their annual revenue to fraud."

- Los Angeles Times

June 10, 2009

Companies Brace for Onslaught of White Collar Crime

"Mounting evidence shows that white-collar crime increases during a recession. The 2009 Report to the Nation on Occupational Fraud & Abuse study conducted by the Association of Certified Fraud Examiners (ACFE) reveals that more than half of the 959 fraud experts polled performed more fraud-related investigations in 2008 than in 2007..."

- A.E. Feldman

June 10, 2009

How to Foil a Corporate Fraudster

"Small companies often have one person doing multiple jobs and don't have the same internal controls required by large, publicly held companies, says Scott Grossfeld, chief executive of the Association of Certified Fraud Examiners (ACFE) in Austin, Texas. An ACFE study covering 959 cases of "occupational fraud" (meaning the kind that transpires at work) between January 2006 and February 2008 suggests that U.S. businesses lose, on average, 7% of their annual revenue to fraud."

- Forbes

May 20, 2009

The Reasons Fraud Spikes in a Recession

"A majority of members of the U.S. Association of Certified Fraud Examiners who were polled in February and March said they had seen the number of company fraud cases climb in the previous 12 months; the bulk of those experts attributed the rise to heavier financial pressure."

- Time

Association of Certified Fraud Examiners: Fraud is on the Rise

"Applications to become a certified fraud examiner are on the rise as companies, government regulatory bodies, and accounting firms aim to have better safeguards in place to prevent financial fraud, and have been hiring."

- The Wall Street Journal

April 20, 2009

Cos. Not Covering Increased Fraud Risks Among Crisis

"More than half (55 percent) of Certified Fraud Examiners say the number of frauds increased during the past year when compared to the level of fraud they’ve investigated or observed in years prior. In addition, 49 percent observed an increase in the dollar amount lost to fraud during the same period."

- Compliance Week

April 14, 2009

Economic Hard Times Produce a Rise in Fraud

"As the economy turns down, fraud is going up. In a survey of more than 500 certified fraud examiners, more than half of respondents said they had seen an increase in schemes and scams in the past year."

- The Wall Street Journal

April 2009

Awkward! 10 Potentially Sticky Work Situations and How to Manage Them

"Unfortunately, every employer will have employees who secretly take from the company. In fact, hidden employee fraud filches 7 percent of a company's revenue every year, according to the Association of Certified Fraud Examiners."

- Entrepreneur

April 1, 2009

The Gauge of Innocence

"As outlined by the ACFE, fraud can be classified into three broad categories: asset misappropriation (such as false invoicing, payroll fraud, or skimming), corruption (bribes, extortion, conflicts of interest), and financial-statement fraud, which aims to make companies look healthier than they actually are."

- CFO Magazine

March 29, 2009

Fraud Fighters: Forensic Accountants on the Front Lines in the Fight Against Fraud

"In the last five years, the number of fraud examiners certified by the Association of Certified Fraud Examiners has jumped 64 percent, from 15,148 to 24,797."

- Pittsburgh Post-Gazette

March 21, 2009

A Help-Wanted Sign for Fraud Investigators

"People who speak a foreign language and those who are certified fraud examiners also have an advantage. Certification is a credential offered by the Association of Certified Fraud Examiners that notes proficiency and experience in fraud prevention, detection and deterrence."

- The New York Times

March 19, 2009

Ponzi Scheme Victims All Missed an Easy Clue: Bogus Auditors

"To avoid becoming victims of such Ponzi schemes, investors should 'at the very least drive by the auditors' buildings and see what kind of facilities they have, or hire someone to do it,' said James Ratley, president of the Association of Certified Fraud Examiners in Austin, Texas."

- Bloomberg

March 17, 2009

Where Fantasy Meets Reality in the Stimulus

"The stimulus package allocates $350 million for oversight, with plans to hire dozens of new auditors and investigators. The Association of Certified Fraud Examiners has estimated that U.S. organizations lose 7 percent of annual revenues to fraud. Should it hold true for the stimulus plan, that's $55 billion -- roughly the state budget of Ohio."

- ProPublica

Feb. 19, 2009

Small Businesses Face More Fraud in Downturn

"'A lot of times a small business will close its doors, and may never know they were defrauded -- that the problem wasn't a declining economy, that employees were stealing,' says James D. Ratley, president of the Association of Certified Fraud Examiners, an antifraud trade group based in Austin, Texas."

- The Wall Street Journal

Jan. 9, 2009

MNCs Queue up to Certified Fraud Examiners After Satyam Scam

"NEW DELHI: In a bid to safeguard their firms against fraud, many multinational companies are contacting Certified Fraud Examiners for checking their accounts and financial transactions."

- The Economic Times