Author Archive
The Benefit “Shell Game”: A Classic from the Fraud Playbook
"The Benefit Shell Game" - First, understand that the term "Shell Game" within business can reference many types of frauds, some very old, and with the explosion of the electronic era, a plethora of new ones. What I am addressing is an older version that deals with benefit structuring. Within business ...
Reporting Income is Crucial for Small Businesses
Over 59% of small businesses commit fraud by intentionally failing to declare all income. Why? Many small- and medium-size business owners do not declare all the income they receive. Many jobs and sales are never recorded and never shown on the books. Why? There are many reasons. The money might be needed ...
Credit/Debit Fraud
Beware of credit/debit card clearing house fraud. Off-shore Clearing Houses (OCH) is one of the most serious issues that exist with electronic revenue operations. It is a fact within the next few years, checks (as we know them) will be pretty much obsolete and within a few more years replaced completely ...
Payroll vs. Contract
Payroll vs. contract labor: Your risk is great if you don’t know the difference. The issue of Payroll versus Contract Labor has been an ongoing battle for businesses for years. Small business owners like the idea of contract labor. With contract labor, the owner need not worry about paying withholding taxes, unemployment, ...
Tulsa County
District Court of Tulsa County, State of Oklahoma, United States -2005. Research Solutions was hired as chief expert witness and for research services in this landmark case. Established damages for Internet espionage and stalking of an individual and the business operations of the individual; sustained judgment exceeded $1.4M. This case was the first of ...
WorldCom
WorldCom – Research Solutions was responsible for independent general analysis and investigation of accounting and asset-movement irregularities. RSI directed and managed four teams of accountants, auditors, forensic analysts, investigators, fraud examiners and collateral legal counsels, resulting in direct identification and evidence for use with various agencies and advocates. Validated intentional deceptive reporting ...
Enron
Research Solutions was responsible for international validation of accounting misrepresentations (accountancy fraud) and tracking of monies transferred to off-shore entities and its final disposition, specifically that of Dynegy, Inc., Puerto Quetzal Power Project (Guatemala), Northern Marianas Power Project (Guam), and Cuiaba Integrated Project (Brazil).
BCCI
BCCI - (Bank of Credit and Commerce International) - Accepted and historically known as the single largest global criminal operation, incorporating numerous illegal activities and fraud on a multi-billion dollar level. Research Solutions developed and directed mission-critical strategic international operations planning and strategy methodology/protocols. RSI was also responsible for the directing/coordination of tactical ...
The Future of Frauds and Threats: Are You Prepared?
Here are some of my thoughts on the future of threat and risk. -Mark Lurie, CFE, CTA "Adaptation to the constant changing of frauds and threats is not an option. It is a mandatory requirement for businesses and institutions alike to survive, compete and achieve on-going successes, both domestically and globally." “Companies that ...
Maintaining Your Fraud/Threat Plan
Just like your business operations, the world of frauds and threats is constantly changing. The key to a successful AFPFO and ATPTO is not when it is implemented, but how it is perpetually maintained after the implementation. Preventative and Post Maintenance Operations Make the plan better and more aggressive in both Anti-Fraud / Post-Fraud ...
The Benefits of an AFPFO/ATPTO Plan
What are the benefits of committing your organization to a thorough AFPFO/ATPTO plan? From an AFPFO perspective: It will be beneficial and profitable in more ways than one: Reduce the loss Reduce the amount of time dealing with containment and post-loss procedures Reduce legal scrutiny Reduce negative PR Reduce or eliminate regulatory punishments and/or fines Reduce client/customer loss ...
AFPFO/ATPTO Solutions
Anti-Fraud/Post-Fraud Operations and Anti-Threat/Post-Threat Operations: Two Distinct Solutions The AFPFO and ATPTO each consists of three components: Component 1: A policy consisting of anti-fraud (or anti-threat) methodology, guidelines and a plan combining a proactive automated and manual system to reduce the potential for a fraud or threat to occur. Component 2: A policy consisting of ...
Facing Fraud and Threat Realistically
To face fraud and threat realistically, an organization must adopt the philosophy that frauds and threats are inevitable and will happen; and that while frauds and threats cannot be eliminated, they can be reduced and substantially mitigated. The organization must also recognize the following requirements for a successful anti-threat and anti-fraud policy: Global acceptance in all company operations Clearly defined program management ...
Right and Wrong Fraud/Threat Methods and Policies
Here are some terms and definitions for understanding the wrong and right ways an organization can prepare for and deal with frauds and threats: OBJECTIVE METHODOLOGY (Right) Reasonable, carefully planned analysis focusing on a defined objective Proactive compliance (internally) Carefully identifying the components of the security breaches from a company-wide perspective Researching and developing systems and procedures, taking into ...
Software: An Incomplete Solution for Frauds and Threats
Software alone will never remove or eliminate fraud or threats, nor will it permanently reduce them. Even the best conceptual artificial intelligence software cannot come close to a well-tailored and designed fraud or threat. Artificial intelligence has not even scratched the surface in anti-fraud technologies, and while it will progress, the advancements of ...
What are “Accepted Losses”?
All organizations deal with acceptable losses in its many forms: loss of revenue, loss of personnel, loss of equipment, etc. A company can take a "look the other way" approach, which is the same thing as saying, "We want to maximize our acceptable losses." Or it can define, confront and control its acceptable losses, ...
Consequences of Fraud and Threat
Consequences of Fraud Local Distrust of the security, credibility and integrity of company operations “Churning” (loss through movement or migration elsewhere) of customers and clients Massive financial losses with little or no recovery Destruction of businesses / personal revenue Surge of bankruptcies and re-organizations Media and PR scrutiny National Government step-ins Reactive regulatory laws, policies and enforcement Reluctance to deal with ...
The Many Names of “Business Rescue”
The term “Business Rescue” is not well-received. More palatable terms have been coined, such as: Business Reconstruction (e.g. “Business Turn-around”) Distressed Operations Business Reorganization However, in each of the three terms used, it is truly a rescue of the present business operations of a company/institution in serious-to-critical condition. Let there be no misunderstanding: business rescues are ...
Online Gambling Frauds
With the advent of the Internet, it was only a matter of time before gambling would find a new method to acquire a vast number of customers. The birth of online (virtual) gambling took place globally--and in a relatively short period of time. Initially unregulated, it grew into a multi-billion dollar ...
Introduction
The last half of 2008 brought a global financial disaster from which we are still reeling. Strangely enough, the destruction, havoc and uncertainty that it brought are now second-hand news compared to the new 2009 disclosures of record losses and unforeseen declines in revenues, sales, and the like. So many unanswered questions--yet ...
Online Gaming Frauds
Another area or serious defrauding of businesses and consumers alike is Internet online gaming fraud (e.g. Massive Multi-Player Online Role Playing Games – MMORPG). This is completely separate from online gambling fraud. Online gaming involves tens of millions of subscribers and hundreds of Internet gaming operators and is a multi-billion dollar operation ...
Hiring Frauds
Applicant Fraud (AF) has been around as long as positions for work have existed. It is a matter of “puffing” resumes and CVs with bogus information, false credentials and prefabricated references. With Internet use now being a major first step in hiring, many employers are having a hard time pre-screening applications because information is getting ...
Online Networking Frauds
The integration of contact management on the Internet has come of age over the past two decades. Facebook, LinkedIn and many other social networking sites have sprung up over the past few years. From just a name and telephone number, contact management has grown into a massive system that allows individuals, ...
What is a Threat?
A threat is a situation where an individual, business entity, institution, or respective staffing/management is targeted or placed at any degree of risk for the purposes of some type of gain by another individual, entity or government. This can include, but is not limited to: extortion, blackmail, terrorism, destruction of property or ...
What is Fraud?
First, I can tell you what it isn't. It is NOT a mechanical, mindless phenomenon. Frauds exist in almost every facet of business enterprises. Any financial dealing, investment, tangible property or item of value is considered a target of opportunity for fraud. What it is: It is a living, breathing entity It is highly intelligent It ...
Tulsa County
District Court of Tulsa County, State of Oklahoma, United States -2005. RSI was hired as chief expert witness and for research services in this landmark case. Established damages for Internet espionage and stalking of an individual and the business operations of the individual; sustained judgment exceeded $1.4M. This case was the first of ...
Enron
Research Solutions was responsible for international validation of accounting misrepresentations (accountancy fraud) and tracking of monies transferred to off-shore entities and its final disposition, specifically that of Dynegy, Inc., Puerto Quetzal Power Project (Guatemala), Northern Marianas Power Project (Guam), and Cuiaba Integrated Project (Brazil).
RSI Case Summaries
Tulsa CountyDistrict Court of Tulsa County, State of Oklahoma, United States -2005. Research Solutions was hired ...
WorldComWorldCom – Research Solutions was responsible for independent general analysis and investigation of accounting ...
EnronResearch Solutions was responsible for international validation of accounting misrepresentations (accountancy fraud) and tracking of ...
BCCIBCCI - (Bank of Credit and Commerce International) - Accepted and historically known as ...
