Melissa B Hall, CPA, CFE Associate Director, Forensic Audits 5 years - Georgia Institute of Technology 15 +/- years internal and external accounting “THAT’S A GREAT QUESTION”
Identify High Risk Learn what you can do Tools available Fraud Financial in the Fight against to Fraudsters Transactions Fraud
Fraud Triangle Rationalization Pressure Opportunity Fraud Pressure Rationalization Opportunity
Opportunity - Defines the method by which the offense could occur - Position of trust is used for the advantage of the fraudster - Low perceived risk of getting caught
Pressure - Begins with person trying to solve financial need - Unable to pay bills - Addictions - Desire for higher social status
Rationalization - Used to tell themselves why their actions are acceptable - “Borrowing” only – intent to pay it back - “I’m underpaid anyway, so it’s ok for me to take this” - “I haven’t had an adequate pay increase” - “It’s owed to me – I’m entitled”
Internal Suspected Audit Malfeasance Finding BOR Policy .
Who Commits Fraud? ACFE 2012 Report to the Nations – Characteristics -first-time offenders - clean employment histories . - never been charged or convicted -never been punished or terminated by an employer for fraud-related conduct
Behavioral Red Flags ACFE 2012 Report to the Nations – Characteristics -living beyond means (36%) -financial difficulties (27%) . -unusually close association with vendors or customers (19%) -excessive control issues (18%)
Who Commits Fraud? .
Profile Characteristics – www.acfe.com .
Profile Characteristics – Translation to our environment - Access to multiple funding sources - “Don’t you know who I am?” “Don’t you know how much money I bring into this . organization?” - Delegated Authority – Limited Oversight - Potential for Conflicts of Interest
Fraudster Internet Resources .
Fraudster Internet Resources www.salesreceiptstore.com .
Fraudster Internet Resources www.salesreceiptstore.com .
Fraudster Internet Resources www.salesreceiptstore.com .
Internet Resources .
Templates .
Templates .
Identify High Risk Financial Transaction Pcards - Level 3 data Travel Conflict of Interest
Your Internet Resources .
Google Vs. Bing .
Google Vs. Bing .
Google Alerts .
Other Internet Resources Whois.com - Domain Names & Identity for Everyone .
Other Internet Resources www.archive.org .
Social Media Quiz Facebook LinkedIn Twitter YouTube Yahoo Google
Social Media Quiz Google + Instagram Pintrest Vine Snap Delicious Reddit Chat
What should you be looking for? Does this make sense? 4 Irregularities 3 Patterns 2 Inconsistencies 1
Examples Paintball Invoice for Reimbursement from SGA.pdf Extra Cab Expenses - Not Reimbursable.pdf Jacko - Trip Purpose.pdf . Harris forged check Req.pdf Gamble receipt
Examples PayPal - Real Examples.pdf . Another Georgia Tech Professor Under Criminal Investigation
Patterns of Behavior
Patterns of f Behavior
Patterns of Behavior - Recurring dates/times - Recurring names on receipts . - Recurring travel patterns
Melissa B. Hall, CPA, CFE Department of Internal Auditing Associate Director, Forensic Audits Georgia Institute of Technology 756 West Peachtree Street, NW Atlanta, GA 30332-0254 (p) 404-894-3927 melissa.hall@business.gatech.edu
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