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...

What Could Bargain Products Really Cost You? By:  Dorothy Riggs, CFE Most of us want to be good stewards over our finances so we often look for ways to save money, which leads us into the world of potentially dangerous bargain temptations. However, the next time you spot what seems to be a bargain, think before you buy.  The word bargain implies that something is a ‘good deal’. You’re getting something of value for a discounted price. Don't be so quick to believe that. Sure, true bargains do exist. But, some bargains are much less than meets the eye and could cost you a lot more than you bargained for.

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....

Baited and Hooked: Advice for Email Fraud Victims By:  Dorothy Riggs, CFE What do I do now? After realizing they’ve been hooked, email fraud victims often wonder, what do I do now? Here are some practical suggestions:

Don’t Get Hooked By a Crook By: Dorothy Riggs, CFE Email Hacks Criminals are savvier than ever.  Using unauthorized access to an acquaintance’s email account, they bait their crooked hooks with phony email in hopes of deceiving you into sending money to their accounts. Email Spoofing Another method fraudsters use to lure you into the murky waters of fraud is email spoofing, which is basically forging the sender’s email address. If the email appears to have been sent by someone you know the phisherman knows that you’re more likely to open the fraudulent email and comply with its instructions. Family and Friend Impersonations Several victims have reported receiving email from a friend or family member who was on vacation and due to a very detailed emergency situation, they needed the wide-eyed and concerned target to send loot right away.  Details of the emergency vary. Common phish tales have included:   I was attacked by a robber and r...

Bible scripture Malachi 3:8 asks, “Will a man rob God?” The answer is a resounding, YES.  Throughout my lifetime I’ve heard many ministers deliver sermons using Malachi 3:8 as the text for their messages.   However, their sermons all referenced robbing God by means of not paying tithes and offerings.   However, in this day and age neglecting to pay tithes and offerings aren’t the only methods of robbery occurring in houses of God. From a fraud examiner’s point of view another real issue is protecting donations from internal and external thieves. Internal Fraud Cases One would hope that houses of worship would be the last places criminals would defraud.   Unfortunately, that hope would be dashed. The same types of fraud that affect secular entities are also present in religious organizations. Worship centers are affected by fraud schemes more often that we know and in many instances are committed by those least expected, trusted members a...

Eater.com Photo  If you used your debit or credit card at a Wendy's restaurant from the fall of 2015 through June 2016 your card data may have been obtained by fraudsters. On July 7, 2016 reports surfaced that as many as 1,025 Wendy's locations were affected by a data  breach. Click on the links below to get more information from Wendy's regarding your questions and concerns. Wendy's company updates Wendy's card breach If you used your card at one of the affected Wendy's locations you should respond as follows: Review your account activity for unauthorized card transactions.  If unauthorized card transactions are detected, contact your bank or card provider immediately to report the activity and inquire about filing a dispute.