Mingling in the New Millennium

The most successful fraud fighters use free social media outlets to network, expand their businesses, increase their contacts, learn new methods and stay current on the latest in anti-fraud news and resources. It is a brave new interactive world.

When Eric Feldman, CFE, decided to retire from the federal government and begin his own ethics and compliance consulting firm, Core Integrity Group, in 2010, his son, Josh, said, "Dad, you gotta get on LinkedIn." Josh, 26, is the chief of technology for an Internet media company in Beverly Hills, Calif.

Feldman, a self-proclaimed "technophobe," cautiously created a user account on LinkedIn listing his past work experience, his contact information and his new company's website address. After testing the social media waters, he then decided to take the plunge and extend invitations to connect with other known professionals, joined several relevant discussion groups and even began to prospect for new clients.

"I went on LinkedIn and pretty much started from scratch," Feldman said. "I now use it as the primary base for my introductory marketing. I send out emails to people I connect with, and it has resulted in more and more networking. It is fabulous for making contacts."

All fraud fighters - independent business owners; staffers at middle-management companies, nonprofit and government agencies; and CFOs and CEOs - benefit from social media.

LINKEDIN: A GOOD ENTRYWAY

Dubbed the "world's largest professional network," LinkedIn boasts more than 100 million members from more than 200 countries. Executives from all the Fortune 500 companies are represented, and there are more than 500 discussion groups related to fraud prevention, money laundering, compliance and ethics, and more. Users can network, prospect, market and expand their professional networks from their desks (or their living rooms, as LinkedIn co-founder Reid Hoffman did when he launched the site in 2002).

There are no dress codes, no business cards to distribute and, actually, no official rules, except those established by the network community and group owners. For example, many, if not all, advertisements and promotions are "flagged" and correspondingly moved to a designated "Promotions" tab by group members who are there to discuss topics important to their industries or jobs. This unique environment of transparency fosters candor, honest discussion and a type of marketing that can only happen when all parties agree to leave the spin and spiels at the proverbial log-in door.

"LinkedIn allows a business owner to have the marketing power of a large enterprise," said Timothy Hediger, CFE, CIA, CCSA, owner and CEO of Polaris Risk Services LLC in North Carolina. "There is a significant bottom-up cultural change happening now in business, government and society - allowing everyone a chance to share in areas that were previously only for the connected and powerful. Social media networks like LinkedIn are critical for any professional to connect and grow in today's environment."

FACEBOOK: COMMUNICATION TO THE MASSES

While many fraud fighters prefer the professional nature of LinkedIn, CFEs like Hediger also are flocking to other social networks like Twitter, Facebook and blogging platforms to participate in online conversations. Known in the media as the subject of that Oscar-nominated film, Facebook continues its reign as the largest social network with almost 700 million active users - approximately 70 percent outside the U.S. Facebook offers platforms (or pages) for individuals, companies, brands, groups, associations, even pets, to communicate with a diverse and expanding network.

Despite Facebook's privacy issues with location-based applications and defaulted network features like "Places" that reveal a user's personal data, users are drawn to this social media mecca once, maybe 10, maybe 100 times a day, to interact with co-workers, friends and family; share photos and videos; and "like" their favorite products and interests. (Users can express their interests in anything posted by pressing a "like" button.) All of these preferences are then aggregated to provide an individual with news, updates and ads that might pique their interests. For example, if you "like" the ACFE's company page, Facebook uses that data to display ads on your home page or updates at the top of your news feed that relate to fraud examination or similar fields.

ACFE chapters have created group pages on LinkedIn and Facebook to communicate with chapter members via wall posts or emails that automatically are sent to all followers. The ACFE's Facebook company page and the LinkedIn discussion group update followers on anti-fraud news, events, videos and surveys, and provide timely customer service. For example, if you have a question about taking the CFE Prep Course before the exam, the ACFE is able to respond within 24 hours with suggestions, tips and candid feedback. Also, other people who see questions can freely respond with their opinions - a format that transforms two-way conversations into vibrant and valuable discussions.

TWITTER: SHORT-AND-SWEET INFO

Twitter, a micro-blogging site, is a network used to communicate news and updates through real-time posts called "tweets." Because of its 140-character limit, tweets are short-and-sweet updates of users' thoughts and activities at any moment. The more than 175 million users can follow people, brands, companies and interests, and receive the latest information in real time.

Just like Facebook, the "Twitterverse" filters breaking news, leading-edge technology, events, products and resources by users' preferences. CFEs can connect with other CFEs; fraud fighters can get the latest fraud news stories as they break; business owners can promote their companies' events and publications; and, yes, users can even find out what the Queen of England is doing on a Saturday afternoon.

BLOGS: LONGER EXPERT COMMENTARY

For those CFEs who feel limited by 140-character messages, company or personal blogs could be the solution. Each entry on a blog (short for "weblog") is a 300- to 400-word commentary on a subject or even a stream of consciousness. Most blogs, which users update two to three times per week, read like combinations of diaries and short magazine articles. Blogs range from the über-personal to the extremely political, but some fraud fighters have found ways to provide expert commentary on topics like compliance, fraud risk management, internal auditing and more.

Feldman started a blog on his company website, CoreIntegrityGroup.com, to engage with other compliance and ethics bloggers and to spread the word about his company virally. "My initial reason for wanting to do a blog was to demonstrate my professional bona fides — in other words, to be a part of the dialogue on cutting-edge issues involving business ethics and compliance," Feldman recalled. "My son encouraged me to include a blog as part of my website in order to make the website more interesting and relevant, attracting a greater number of visitors more frequently and to enhance my business positioning on search engines by registering fresh content and new links on a regular basis."

As Feldman mentioned, being a part of the dialogue is an essential part of growing a business and developing a reputation as a subject matter expert in a given field. With the conversations on social media happening 24 hours a day, seven days a week, the question many CFEs have to ask themselves is, "Do I want to be a part of the conversation?"

For Sheila Keefe, CFE, CIA, principal at BDR Advisors LLC, the answer is, "Yes." Keefe started her blog, Business Done Right, in 2009 to share her insights on fraud deterrence, cash flow management and auditing. "I was passionate about promoting a thought exchange on how to help businesses succeed by addressing waste and abuse," Keefe said.

Much like her passion for fighting fraud, Keefe wanted to start a dialogue and join the existing conversations about corporate governance, while at the same time assert herself as an expert in the field. And, while getting her name out on the cloud is important, it has not been the most rewarding aspect. "My participation in the blogosphere has enriched the enjoyment of my professional life immensely," Keefe said.

USING SOCIAL MEDIA IN FRAUD EXAMINATIONS

Jacob Parks, J.D., an ACFE research specialist, advised in a Fraud Magazine Special to the Web article in February, "Using Social Networking Site Information in the Courtroom," that fraud examiners "should work hard to discover evidence in information posted on Facebook, Twitter and other social networking sites (SNS).

"A person's online profile," Parks wrote, "might be a gold mine for red flags of fraud, such as pictures of a new house that a subject could not afford or postings detailing a luxurious vacation during a supposed sick leave. SNSs are full of subjects' information that can be used in legal proceedings — either as direct evidence or as a means to contradict testimonies."

While LinkedIn, Facebook and Twitter are the current leaders of the social media pack, fraud examiners should look at the vast array of other types of networks on the web, such as YouTube and Tumblr, and emerging social tools like Square and SCVNGR.

Though many of these names read like shorthand slang only for millennials, these young networks pack a valuable punch for all CFEs. Cynthia Hetherington, founder and president of a consulting firm focused on Internet intelligence, security and investigation, so eloquently summed it up: "The whole business of social networking sites is to catalog and sell your information to marketing endeavors. Fraud investigators are making good, legal use of these searches."

NETWORKING 2.0: MINGLING IN THE NEW MILLENNIUM

Probably one of the most valuable tools CFEs can add to their collections is a progressive attitude toward emerging social networking ideas. Looking ahead is not only smart from a career perspective - it is essential for fraud-fighting success. Fraud perpetrators and their methods are always evolving. Through social networking, CFEs can remain current with the latest techniques and fraudsters' ever-changing M.O.s.

The same conversations that fraud fighters have at the ACFE Annual Fraud Conference are happening every day on social media. Much like a conference or a trade show, networking on places like LinkedIn, Facebook, Twitter and blogs comes naturally. A virtual invitation to connect with someone on LinkedIn or a friend request on Facebook is like an extended hand at a dinner party or a lunch meeting request in your Outlook mailbox from a business associate. The game hasn't changed - just the playing field. Or, rather, the playing field has just expanded.

Mandy Moody is the ACFE's social media specialist. 

Sidebar 1: Become Savvy on Best Social Media Practices

Hone Your Tone The tone on social media is a balance between personal and corporate. Remain professional, but be honest and transparent. Comments and posts are usually short and to the point (discussions are an exception) due to character restrictions.

Tips: Fill out your profile completely with your name, title, company and email address. Respond to questions and comments in a timely manner (24 hours or less).

Social Media Netiquette Acknowledge positive comments or reviews. Your actions are for everyone to see, so show them an active, positive social media participant.

Tips: Say thank you when you receive a compliment and actively compliment or "like" other posts.

Use Keywords Use keywords in your posts so that ACFE social media content is easily searchable by search engines.

Give a Call to Action Social media users often like being told exactly what you want them to do so that it is easy for them to find what they are looking for once you have piqued their interests. Make it as easy as possible for a user to understand what you are sharing.

Tips: Use verbs to give clear calls to action. Tell followers exactly what you want them to do. Example: "Click here for a free white paper on fraud examinations in the new decade."

Be Interactive It is simply not enough to only post a comment anymore. You want to virtually take users somewhere they would not otherwise go. Become familiar with free applications you can download to help with user interaction.

Tips: Add links, photos or videos to your posts. Ask questions or take polls.

Edit/Reread Once you post something, it is out on the web forever. You can always remove it or take it down, but there is no guarantee that someone didn't already see it/comment on it/share it.

Tips: Reread your content and check your links before every single post. If you are unsure of grammar, tone, etc. send it to someone for review before posting.

Sidebar 2: Useful Social Networks for CFEs

LinkedIn  

Facebook    

• Official launch: 2004  
• Almost 700 million users  
• Best for: connecting with people on a more personal and social level, sharing news, upcoming events, links, photos, videos and products.  
• Fun fact: 70 percent of users are outside the U.S.  

Twitter  

• Official launch: 2009  
• More than 175 million users  
• Best for: sharing and receiving breaking news, articles, white papers and surveys in real time.  
• Fun fact: Get tips on how to use Twitter for business. 

Sidebar 3: Social Media Works!

In the 2011 Social Media Marketing Industry Report: How Marketers are Using Social Media to Grow Their Businesses, Michael Stelzner of Social Media Examiner surveyed 3,342 business owners regarding their experiences with social media: 

• 88 percent of marketers saw an increase in brand awareness.  
• 72 percent saw an increase in traffic.  
• 62 percent saw improved search rankings.  
• 59 percent made new partnerships.  
• 48 percent had better sales.  
• 59 percent of self-employed marketers saw a reduction in marketing costs.  

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