Prepare for the unknown

At its core, the fraud examination profession isn't dangerous. However, fraud examiners can take precautions to lessen possibilities that potential fraudsters might become angry or aggressive during interviews. Here are steps fraud examiners can take to be safer when conducting examinations domestically and abroad.

Any list of dangerous occupations would at the least contain firefighters, construction workers and police officers. However, just about any career can lead to a potentially hazardous situation, and this doesn't exclude the fraud examination, auditing and investigative professions.

In November 2013, a U.S. government audit found that the U.S. Internal Revenue Service (IRS) failed to perform required security assessments at more than a dozen of its facilities, which placed employees at risk. (See Audit finds IRS put employees at risk of attacks, by Josh Hicks, Daily Times, Nov. 18, 2013.) According to a report released by the Treasury Inspector General for Tax Administration (TIGTA), threats of violence against IRS workers and facilities have increased "during a time of continued financial hardship," and the agency is a "target for those who are angry at the tax system or the government."

According to the Daily Times article, a separate TIGTA report on IRS management said that the agency processed more than 8,600 threat-related complaints between 2009 and 2012. "The IRS may have security vulnerabilities that are not identified in a timely manner, thereby placing IRS employees and taxpayers at risk," the report said.

Handling difficult situations

As a result, the IRS agreed to implement seven recommendations offered by the inspector general in an effort to tighten security measures, according to the separate TIGTA report.

It's inevitable that CFEs will have to deal with threats similar to those found in the TIGTA audit. However, we can identify and mitigate vulnerabilities before we begin fraud examinations.

Additionally, when we embark on work trips — foreign and domestic — we can encounter a multitude of dangers.

As CFEs, we'll sometimes face challenges much greater than the investigative assignment itself. Therefore, we should ask:

• How should I plan for my safety?
• When am I asking for too much?
• Should I try to be the investigative hero and put my life at risk at the expense of another person's illicit gain?

We often have to interview employees suspected of wrongdoing. Conducting interviews correctly can help ensure that you won't make things worse or even potentially deadly.

Handling difficult conversations

It's important to be aware of the most common mistakes that would jeopardize your fraud examination plus your safety and that of others.

If organizations don't properly and professionally deal with employees they're investigating (or terminating), a simple information-gathering interview or termination session for misconduct could turn violent.

Truth-seeking conversations might not always be easy. However, the last thing you want to do in interviews is anger employees or make their situations any worse. Treating these situations with care is not only the right thing to do for employees but for yourself and your organization.

Best practices

Unfortunately, we still see and hear examples of investigators needlessly antagonizing employees. Therefore, here are some do's and don'ts (not an all-inclusive list) of how to deal with those being investigated.

• Don't criticize, humiliate or condemn. Staying sensitive to their situations will help put them at ease.
• Don't be judgmental or moralistic. Don't lecture and condescend.
• Do ensure that you're respectful, professional, fair and honest. Try to empathize with them, and offer hope for the future. Provide positives along with the negatives, and show that as long as everyone is honest and fair, things will go smoothly.

These pointers are applicable not only in the office but when you're on the road to conduct fraud examinations and audits. You can't foresee every risk, but you can prepare before you pack your suitcases.

Basic travel preparation

No doubt you know most of this information, but here's a good review checklist:

• Logistically plan your offsite fraud examinations. Use the Internet to search for potential risks of the country or region.
• Of course, check regional weather conditions or possible impending disasters and what to do if you're caught in one.
• Take all required and recommended shots, and bring your immunization history documents.
• Store the names of your medications and emergency medical contact information in your wallet or handbag plus your suitcase.
• Find possible replacement sources of medications at your destination before your trip.
• Consult with your doctor before traveling if you have a medical condition.
• Give your friends, family members, co-workers and your company's security officer your travel plans. Ask the security officer for help in risk planning.
• If possible, travel with a company companion.

Now let's discuss specifics on traveling to other countries.

International travel

In "Argo," the 2012 political thriller film directed by Ben Affleck (adapted from U.S. Central Intelligence Agency operative Tony Mendez's book, "The Master of Disguise," and Joshuah Bearman's 2007 "Wired" article, "The Great Escape: How the CIA Used a Fake Sci-Fi Flick to Rescue Americans from Tehran") six Americans escape from the U.S. embassy in Iran after revolutionaries invaded it in 1979. Mendez, an "exfiltration" expert, devises a plan to create a visiting phony group of Canadian film makers supposedly scouting locations in Iran who then smuggle the Americans out as its "production crew." The group faces dangerous situations before they escape from the country.

"Argo" is an extreme example of the dangers of international travel, but it does emphasize the necessity of understanding the political terrain of the region to which you'll be traveling.

Register with the U.S. State Department's Smart Traveler Enrollment Program (STEP). You'll give the State Department your name, email address and country destination so it can send you messages about your destination. You'll also receive safety information from the U.S. embassy in the country to which you'll be traveling. Plus your family and friends can contact you via the embassy in an emergency. Also, see the Department of State's alerts and warnings. Political tensions and protests can escalate quickly. The State Department can help guide you to safe locations and avoid street protests, riots, political action and fighting. USA.gov also is a great resource for international travel information and links.

Make PDFs of your passports, visas, airline tickets and other important documentation and email them to yourself at an account you can readily access, or save them on a secure portable flash drive. Also, keep duplicate photocopies of your important documents in a secure location with you while traveling (in money belts, hidden pockets on your clothing, etc.), and make sure your family also can access digital copies of them when you're away from home.

Verify your international insurance coverage with your employer and notify your risk management group.

Ensure your communication capabilities prior to your arrival in a country. Confirm your international phone and data service rates with your carrier. Back up your cellular phone data, laptop and thumb drive data; foreign customs officials have been known to seize or tamper with data components. You might want to simply rent a temporary cellular phone through the hotel or local shops.

Conducting international investigative fieldwork

Employ interpreters who can avoid any embarrassing and costly translation misunderstandings and further keep you safe.

Of course, respect the country and culture around you. Some of the citizens might be jealous or feel inferior to you and your country. Break the ice by talking about the positive experiences and warm hospitality you've already received in their country. A simple opening compliment can go a long way during an investigative interview. Be careful to keep your tone positive. A negative or misinterpreted tone can sour a situation quickly.

If you sense noncooperation or a defensive attitude in the investigation, immediately express appreciation for whatever information you've already received and the time they've spent. Be professional and polite. You need to know when to stop investigative questioning for your own physical safety because you're at the mercy of the country and its people.

If possible, find a private and secure location for conference calls and discussing sensitive allegations. A vehicle works well for a private cellular phone conversation, but realize that some listeners might understand your language when you're talking outdoors or in echoing business offices.

If you feel unsafe, remove yourself from the situation and seek a secure location. Sometimes, when you risk your well-being because of another person's greed, you need to stop and create a new plan on how to achieve your goal. Don't try to be the investigative hero, and don't try to manage the investigation alone.

Traveling remotely might not always be the best option. Many international investigative services can assist directly or indirectly. These services also could offer necessary specialized industry and international business cultural information support to better understand casework. Additional specialized legal counsel could further assist so you can decide the best approaches to performing international investigative fieldwork.

Credit cards

We don't recommend using credit cards for all countries. Actually, some card companies might not honor transactional thefts that occur in certain regions. Contact your credit card company for details.

Also, some countries process credit cards differently; so don't just hand over your card when trying to pay for a meal. In some nations, wait staff will bring a portable credit machine to you.

Not all international vendors readily accept American Express, so bring other bank credit cards. Credit cards with SmartChip technology security features are becoming common.

Taxis and car services

Before traveling to countries with corrupt reputations, find reliable, legitimate taxi companies. Sometimes a hotel might recommend preferred car services, but they might come at higher rates. Retain recommended taxi service phone numbers and business cards.

In a popular Argentina scam, passengers pay cabdrivers after they reach their destinations, but the drivers say they can't take such large bills. The drivers supposedly hand back the passengers' bills, but they've actually switched them for counterfeit currency. The moral of the story? Always pay cabdrivers with sharply creased bills. (See Some Common Big City Swindles, by Nico Sol at "wander-argentina.")

Try taking taxis only during the day. Tell drivers that you're not in any rush, and they can drive safely and slowly.

For longer car rides, regularly check that your driver is awake and attentive. Drivers generally don't make large salaries, so small offerings like a cup of coffee might help ensure a safe and happy cab ride.

To avoid miscommunication with your taxi driver before or after a ride, you can head to the nearest hotel to obtain a quick translation.

Public street ATMs

ATMs might be the easiest way to obtain local currency, but be aware of your surroundings. Ask hotel concierges about the safest ATM access. ATMs within banks, obviously, are safer. Try to conduct ATM transactions during the day.

If you must count your cash, do it quickly and close to the ATM machine, and move on. If possible, keep a friend with you as an extra pair of eyes and ears. If the ATM doesn't give the amount you requested, and you're not at a bank or it's after hours, make a point to visit the bank or write a letter later.

Other international travel tips

• Never accept rides or offers from anyone you encounter casually.
• Check plane, train and bus schedules before you travel.
• Stay awake and alert when using public transportation.
• Keep valuables out of sight, including fancy jewelry or watches. If it's necessary to keep valuables in the hotel, use the hotel safe or keep them with clothing in your closed suitcase.
• Use anti-theft handbags, backpacks and money belts.
• Keep cellular phones in your pockets or secured when you're not using them.

Do the right thing

Fraud examinations can be stressful and exhausting for you and the interview subjects, so don't kick someone when they're down. You can be firm and tough when seeking the truth, but still show empathy. Why make unnecessary enemies? Chances are the individuals with which you're dealing aren't going to be too happy with you and/or your organization if they're eventually terminated. But if you treat them respectfully and fairly, you greatly reduce the possibility of physical assaults or other violent acts.

Work to be mentally and physically prepared for anything. We might not be able to foresee every potential risk, but as long as we're prepared for the worst and are cautious and careful, we can be confident dealing with whatever may come our way. Good luck and safe travels! 

Heiko Giesberg, CFE, CPA, is director of financial and operational audit at Loews Corporation.

Joseph Agins, CFE, is director of ethics and compliance investigations for Apollo Education Group. He's a member of the ACFE Board of Regents.

Despite precautions, global travel can end in tragedy

On Nov. 12, 1997, Larry Jennings, CFE, CPA; and Tracy Ritchie, CFE, CPA, were being driven through Karachi, Pakistan, in a vehicle with two other American employees of Union Texas Petroleum. They were in the country assisting with accounting and anti-fraud projects. Two radical extremists, aware that the car contained Americans, fired on the vehicle and killed all, including the Pakistani driver. There was no indication that any of the workers knew that they could have been targets.

Jennings, 49, who had spent 10 years with Union Texas, was an internal audit manager for the company. Ritchie, 41, was a senior audit advisor and 15-year employee at Union Texas.

The ACFE later honored the two CFEs with the Ritchie-Jennings Memorial Scholarship Program. The program, administered through the ACFE Foundation, supports the education of students who have an interest in pursuing careers in fraud examination. To date, the Foundation has awarded more than $500,000 to more than 300 students. See ACFE.com/scholarship.

The Association of Certified Fraud Examiners assumes sole copyright of any article published on www.Fraud-Magazine.com or ACFE.com. Permission of the publisher is required before an article can be copied or reproduced.