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Not Having a Whistle Blower Hotline Is Like Going Home and Leaving the Doors Unlocked At Night.
HOW TO PREVENT AND DETECT EXPENSE ACCOUNT FRAUD
WHY EMPLOYEES STEAL
SHOPLIFTING-What Retailers Can Do To Prevent Theft
Managing Business Reputation Risk

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Not Having a Whistle Blower Hotline Is Like Going Home and Leaving the Doors Unlocked At Night.


NOT HAVING A WHISTLE BLOWER HOTLINE IS LIKE GOING HOME AND LEAVING THE DOORS UNLOCKED AT NIGHT.

You wouldn’t finish your work day and then go home and leave the doors unlocked to your business. Of course you wouldn’t. Not only would the unlocked door create an enormous security risk, you probably wouldn’t sleep that well. So not having an employee reporting hotline is like leaving the doors unlocked and hoping that you’re lucky enough that no one comes by and finds it open. Because if they get inside your business it could be very costly.

HOW TO PREVENT AND DETECT EXPENSE ACCOUNT FRAUD

HOW TO PREVENT AND DETECT EXPENSE ACCOUNT FRAUD

It’s hard not to have noticed all the corporate executives and politicians who have been accused of expense account fraud. With executive salaries, do they do it because they have financial problems? Probably not, they could be living beyond their means, but a more reasonable explanation is greed. That they felt they were entitled to fudge their expenses and they could get away with it. They have justified it by thinking this is acceptable behaviour or rationalizing everybody is doing it so why not me.

WHY EMPLOYEES STEAL

Whether you are in manufacturing, retail or a service industry. Your employees steal from you for all the same reasons. Criminologists state that three elements must be present in order for employee theft to occur,

1.Motive:Employees may have financial, gambling, substance abuse problems, or may just feel they are unappreciated or under paid at work.

2.Opportunity:The lack of security control systems and clear cut policies and procedures. Make it easier to steal from you.

3.Justification:Is simply the employee justifying his actions by saying I will put it back, it's not really stealing or they want me to take it.

SHOPLIFTING-What Retailers Can Do To Prevent Theft

Shoplifters- The National Retail Federation reports that one out of every ten shoppers attempts to shoplift. There are three categories of shoplifters:
1. The average amateur shoplifter who accounts for 75% of the arrests.
2. The full-time amateur shoplifter who accounts for 20% of the arrests.
3. The professional shoplifter who accounts for 5% of the arrests.

Common Characteristics of a shoplifter:
  • Often carries a bag or backpack into the store.
  • Appears nervous or startled when approached.
  • Constantly looks around.

Managing Business Reputation Risk


MANAGING BUSINESS REPUTATION RISK
East Coast Fraud & Risk Management Group - www.eastcoastfraud.ca  

Most organizations don’t give much thought to their business reputation until something goes wrong. One of the reasons is that a business’s reputation is difficult to identify, analyze and put a value on. It is an intangible asset that does not show up on the balance sheet, except perhaps as Goodwill when one company buys another company. Your reputation is what brings customers to you, keeps your customers coming back, and why existing customers will refer friends and family to your business.

How to Use Corporate Culture to Prevent Fraud


How to Use Corporate Culture to Prevent Fraud  

Corporate Culture can be described as “The beliefs and values which are understood by employees.” Culture is like an invisible energy field that surrounds your organization and determines how people think, act and see the world around them.
Some facts about corporate culture include;
1. Culture determines the “way of life” for employees who often take its influence for granted.
2. Over time culture is fairly stable and resistant to quick changes.

REDUCING THE RISK OF BUSINESS IDENTITY THEFT


REDUCING THE RISK OF BUSINESS IDENTITY THEFT 

Most of us are familiar with personal identity theft, where an individual has their identity stolen, but business owners may not be as familiar with Business Identity Theft. Business Identity Theft is not the theft of customer’s personal information, but is someone assuming the identity of the business, that has no right to, for illegal purposes. The purpose is to gather information on the company and then submit fraudulent business records and tax filings, causing significant financial losses to the company and defrauding their creditors, suppliers and financial institutions.

The High Risk of Fraud in the Accounting Department


 

No where in an organization is the opportunity for fraud the greatest and the catastrophic losses the highest than in the Accounting/Bookkeeping department.   The accounting department handles large inflows and outflows of cash and cheques, that a dishonest employee can find numerous ways to commit fraudulent acts. Not only can they commit the fraud, but they also have the means to conceal it, because they have too much control over the accounting function and the secrecy that surrounds the financial information.

How Not To Lose Your Life Savings to Fraudulent Investments and Advisors

How Not to Lose Your Life Savings to Fraudulent Investments.
 
As a former stockbroker turned fraud examiner, I am always dismayed when I hear about another investor getting swindled out of their life savings. It hurts the reputation of not only the firm involved but the industry as a whole. The securities industry is one of the most highly regulated industries in Canada with Investment Advisers being carefully screened, regulated and monitored. The firms are also highly regulated, by Provincial Securities Regulators, National Securities Regulators and their in house Compliance Departments.

Fraud & Risk Management for S&M Enterprises

We are pleased to have added a Blog to our site. We will be covering topics that affect Small & Medium Enterprises such as Investment Fraud, Corporate Culture and Fraud, Corporate Identity Theft and Enterprise Risk Management. We encourage our many clients and friends to offer suggestions and comments. More to come shortly.

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