FraudJournal Blog

March 23, 2013

“What’s your fraud IQ” (Journal of Accountancy) Mar1.2013


The recent news articles and discussions regarding the over testing or improper testing of students to measure their progress in the basics brought to mind how much education each of us as fraud fighting professionals maintain to continue our professional certifications; those lovely alphabet letters that follow our name. As a fraud fighter, I tend to feel that these letters mean little without the experience and ability to apply said education to my professional work. I could have lots of alphabet soup after my name, but without the ability to apply this knowledge to each case and think outside of the testing box, I have just become adept at passing tests. Which brings me to my point, and I do have one, once we take the path to become credentialed, how do we know we are or have maintained our ‘fraud IQ’?

The ongoing issues regarding the students’ continual testing and preparation for the testing are important; “when does an education become a required process instead an education of how to apply knowledge?”  And so I ask myself, am I honestly building my skill sets or am I just meeting my requirements to maintain my CPE credentials. If tested, would the result be a true measurement of my abilities or instead my ability to accurately recall information. Can you accurately measure an individual’s ability to apply information by the methods of current testing?

I think the article of “Whats your fraud IQ” posted in the Journal of Accountancy dated March 1, 2013 is an interesting way to find out how you test. How would you approach these questions? How would you redesign this test? How much do you really remember? Should CFEs test like Auditor’s – in case work scenarios? What to do you think? Talk amongst yourselves.

 

August 22, 2011

Is Ethics Hard-wired or Learned


I was reading a posting in LinkedIn by Fernando A., in the ACFE group, titled “Pants on Fire! Children and Lying“. The link led to a site called delanceyplace.com 8/18/11 – children and lying. The article a study into the frequency of children telling lies and whether this was indicative of a future problem. It seems that children who lie well are cognitively more advanced and are able to hide their tracks better. They tend to grow up and be more capable of dealing with complex situations, such as employment that requires quick problem solving or outside of the box thinking. The article suggested they might become bankers; I wondered about other financial positions that have recently been in the headlines for manipulation of funds and factual information.Then I thought about the recent trends in education for forensic accounting and fraud investigation. And what about learning to understand the federal tax code and recent gloable accounting issues.

Today’s generation is faced with making choices for more than which college to attend or job for a career. They have become a self-monitored social network of information and ideas. They want their lives to have impact, their efforts to matter, and their path to move at the rate that technology limits them. And I ask myself, what were they like as children? How did they interpret whether to help each other to obtain the advancement they rationalized as necessary to reach either their own goals or their family’s goals. I mention family because so many children now have been pushed through the process of high grades for college and then a better future. Does all of this push to succeed on a fast track impact their view of ethical standards?

Last week I was talking with a college professor who teaches at North Seattle Community College. They have created a new Certificate of Fraud to help students prepare for a career in fraud fighting. One of the topics discussed was about how students’ views of ethical behavior is changing nationwide. Does this generation of students feel differently about sharing information and taking risks that a previous generation might see more black and white. And if so, will that impact how they investigate fraud?

I don’t have an answer, but it poses the question of whether the “perceived need” to commit a fraudulent act will need to be redefined into less black and white and into more levels of grey. I hope not, but as those of us currently in the trenches age, and others come into the roles of leadership, what do they interpret ethical behavior to mean.

So now I am back to whether or not ethics is hard-wired or learned at an early age and how does that affect the fight against fraud. Employers are already being challenged by young professionals on what they expect as employees. Perhaps this generation of young professionals will need to show the veteran fraud fighters what they see as the solutions to a potential fraud wave looming in the future. Elder abuse and exploitation, cyber crime, and white-collar crimes will continue to rise as there is a shift in which population is taking the lead.

My vote is on this upcoming generation of professionals to take everything to the next level with technology and all its trappings. And I still ask, what were they like as children? Were they good liars too?

April 11, 2011

Fighting Fraud By Connecting and Detecting Globally


As the world gets smaller from people traveling more, gaining greater access to information via the internet, movies, television and cellphones, we seem to be sharing at a rate that astounds and thrills the number crunchers. We now share everything from secrets to solutions, inventions to investigations, and things that shouldn’t be mentioned let alone take place. This includes new ways and means to commit fraud including establishing complex webs that challenge the best of us in fraud investigation, as well as ways to counterfeit almost every product manufactured. But as fraud fighters, we are learning how to use that to our advantage. As much as the internet causes us to throw our hands up in the air in frustration we also have shouted loudly with joy when a fraudster unwittingly leaves a trail for us to follow. And we thank them for that.

The best way each of us can reduce the risk of fraud is become educated, connect with each other and work together as transparently as possible. The more we leave the old ways of hoarding our tips and tricks, the stronger we become in unity. By now, most cities, counties and states as well as federal agencies are beginning to understand this and the old network of closed doors is opening up to free-share ideas and solutions. But even better than this is that a new level of young professionals have grabbed onto the possibilities and are both teaching and putting into place ways to be more efficient and effective in the fight against fraud. I applaud all of you who work to share your concerns and network to find solutions. In my effort to continue sharing, I have listed below some sites I have come across recently for you to review and share with each other. I by no means participate in them, or receive any benefit from them. Nor do I present them as the perfect find, but I do find the information to be interesting and provide some ideas to pursue for further consideration and self-education. Keep up the good fight and continue to stay true to your morals and ethics as we all continue to be challenged in life as times become more difficult and trying of faith and patience.

http://blogs.gartner.com/avivah-litan/2010/12/15/2011-threats-and-trends/

http://threatmetrix.com/threatmetrix-announces-fraud-prevention-trends-for-2011/

http://news.hostexploit.com/cybercrime-news/4794-changing-internet-fraud-trends-highlighted-in-ic3-2010-report.html

http://www.publishingtrends.com/2011/04/bloggers-weigh-in-on-the-kindle-swindle-and-new-fraud/

http://www.nlets.org/press/internet-crime-trends-the-latest-report

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