Poor Ethics:  A Gateway to Ruin By Dorothy Riggs, CFE Recent news reports of the latest Anthony Weiner scandal , once again brings the discussion of ethics to the tips of our tongues.  When it comes to committing acts of questionable behavior Mr. Weiner is definitely not on that crooked path by himself.  Time and time again we hear of politicians, employees, businessmen, educators, husbands, wives and so on who are caught straying away from the straight and narrow. These wandering acts often lead to catastrophe.  Surely no one intentionally sets out on a path of destruction. So, what leads them to a trajectory of ruin?

The Fraud Triangle: Businesses get Burned by the Man-in-the-Middle By: Dorothy Riggs, CFE By: Dorothy Riggs, CFE The fraud triangle involves three major components; pressure, opportunity and rationalization. Mixed together, these ingredients explode causing significant losses for businesses of all classifications. Recent reports indicate that a typical organization loses 5% of annual revenues to fraud.   The Incendiary Mix of Fraud Triangle Ingredients Pressure is felt by potential fraudsters.  It may stem from financial, health, blackmail, psychological, lifestyle dependency or other issues that are of monumental importance to the affected individual.  He or she looks for some way to relieve the pressure by eliminating the immediate issue, if only temporarily, until they can find a more permanent fix. Opportunity is present when the fraudster identifies and takes advantage of circumstances in order to illegally and deceitfully obta...

The Advantage of Due Diligence What is Due Diligence? Perhaps one of the most important elements of fraud protection is due diligence, which at minimum is a measure of prudence or responsibility that should be exercised in all instances.  Due diligence includes basic reasonable steps that should be taken by an individual or company prior to entering relationships, rather business or personal. Why Perform Due Diligence? Checks-and-balances is another term you often hear when discussing fraud prevention.  I consider due diligence a part of my checks-and-balance system.  When performing due diligence my goal is to discover, confirm or refute data. So, I check things out because I don’t want the other party to have more information that I have.  Thus, it’s my responsibility to arm myself with as much knowledge as possible so that I’m in a position of advantage or at least on a balanced playing field.  That way I can make a well informed decision....