Fraud and Forensic Investigation Archives | Page 2 of 4

‘Tis The Season To…Hire Temporary Employees

November 2, 2012/in Fraud and Forensic Investigation/by revel

Background checks help protect employers

USA Today reported, “six of the largest store chains in America will together add more than 300,000 temporary workers during the season to account for the expected higher volume of shoppers”. According to MSNBC, Amazon alone is hiring 50,000 employees for the holiday season. That’s a lot of new faces for employers to keep track of!

While this time of year is busy for stores looking to hire people quickly, some forget one important step — background checks. The ACFE reports that small businesses lose $2.9 trillion annually because of fraud committed by their own workers. Background checks are one way to help prevent fraud from happening to you.

When running a background check, the first thing to consider is whether you want to run a state or national background check. When making this decision, keep in mind that a state background check will not show if crimes were committed outside that respected state and may not show a clear picture of the individual’s activities.

Before implementing a background check, your company should have policies regarding best practices and industry requirements. In the policies, it should state what types of crimes would cause you to retract an employee offer. It is best to run a check after an offer is made with a clause that employment is pending results that are in align with your specific policies.

H&S Companies facilitates background checks with real time processing. Our software pulls data from a national database and provides accurate reports of convictions.

For more information, check out the following articles:

To learn more about preventing fraud in your business, contact Kit Powell.

Kit Powell
Certified Fraud Examiner
616.735.3104
kitp@hscompanies.com

Fraud Happens Everywhere

November 2, 2012/in Fraud and Forensic Investigation/by revel

Rough financial times could trigger an employee to embezzle to stay afloat.

National news programs report financial crimes from all around the world, every day. As we listen to these stories in our homes across Western and Central Michigan, it’s hard to imagine embezzlement or fraud happening in our small business. But, it does happen more frequently, and goes on for perhaps longer than we think.

In August, Mlive reported that Eileen Louis Dove, a 6-year employee of Viking Tool & Engineering Inc., was charged with embezzling $31,000 (some speculate that figure is actually closer to $280,000). The alleged forged check-cashing scheme occurred from late 2011 through May of 2012. Checks were allegedly forged and cashed at banks right here in West Michigan (in Muskegon and Newaygo counties).

In March, the 9&10 News reported that Jason Artnz, of Union Township, allegedly embezzled over $500,000 in electronics, appliances and tools from his employer, Auto Owners Insurance. Artnz is accused of padding customers’ insurance claims and then keeping the excess for himself.

So why do people embezzle from their employers? In many cases, you may be dealing with an otherwise loyal and very good employee. It’s not uncommon for me to hear people say, “I never thought {embezzler} would steal from us!” It’s important to note that good people can do bad things. Many things could be going on in your employees’ personal lives that could trigger them to take desperate measures, such as, extraordinary medical expenses or gambling problems.

It’s crucial to be on the look out for behavioral red flags. You also need to be especially careful to monitor the following:

Journal entries affecting cash
Receipts and revenues being less than your expectations
Bank reconciliations noting outstanding deposits or checks
Notices of payroll taxes due from governmental authorities
Questions from customers regarding their accounts receivable balances

There are many steps you can take to prevent fraud from happening. It’s imperative to have the proper controls in place. A fraud assessment conducted by H&S Fraud Division can identify weaknesses in your system and put controls in place to help prevent fraud.

To learn more about preventing fraud in your business, contact Kit Powell.

Kit Powell
Certified Fraud Examiner
616.735.3104
kitp@hscompanies.com

Phishing for Information | Beware of Fake IRS Site

October 26, 2012/in Fraud and Forensic Investigation/by revel

"If I cast enough lines, I'll catch a big fish..."

On October 25^th, the IRS issued a warning regarding a new tax scam. Taxpayers have been receiving solicitations to use web-based products on a fake IRS site. This site is designed to steal your personal information. The real IRS e-Services page is for tax preparers and payers only and is found at www.irs.gov.

If you receive a solicitation sending you to a site ending in .com, .net, .org, etc., it’s not the authentic IRS site. Also, keep in mind that the IRS will never initiate contact with you via email or web channels (like social media). If you do receiving a phishing message, please be sure to report it to the IRS.

If you have questions regarding correspondence from the IRS, please contact your H&S team member today.

photo credit: wit via photopin cc

Phishing for Information | Beware of Fake IRS Site

October 26, 2012/in Fraud and Forensic Investigation/by revel

"If I cast enough lines, I'll catch a big fish..."

On October 25^th, the IRS issued a warning regarding a new tax scam. Taxpayers have been receiving solicitations to use web-based products on a fake IRS site. This site is designed to steal your personal information. The real IRS e-Services page is for tax preparers and payers only and is found at www.irs.gov.
If you receive a solicitation sending you to a site ending in .com, .net, .org, etc., it’s not the authentic IRS site. Also, keep in mind that the IRS will never initiate contact with you via email or web channels (like social media). If you do receiving a phishing message, please be sure to report it to the IRS.

If you have questions regarding correspondence from the IRS, please contact your H&S team member today.

photo credit: wit via photopin cc

New Malware Takes Computer ‘Hostage’

October 12, 2012/in Fraud and Forensic Investigation, Locations & Services/by revel

Could your computer be taken hostage?

In August, we discussed hackers attacking a small medical practice by breaching their security system, stealing encrypted files, and then holding them for ransom. According to slate.com there’s a new type of cyber attack people need to be aware of – ransomware.

Ransomware is a type of automated malware that locks you out of your computer and then demands money to unlock it. In a particularly frightening scheme, the ransomware uses your webcam to capture an image of your face and then displays it on the computer along with the demands.

Remember the importance of protecting your network and your machines. Ensure you have anti-virus software installed and make sure it’s up-to-date, ensure network firewalls are in place and don’t open links if you don’t trust the source.

To learn more about ransomware read, Pay Up or the Hard Drive Gets It.

Need help ensuring your network is secure? Contact H&S Computers today.

Tim-Nass-HS-Computers Tim Nass
IT Systems Engineer
616.735.3054
timn@hscompanies.com

New Malware Takes Computer 'Hostage'

October 12, 2012/in Fraud and Forensic Investigation, Locations & Services/by revel

Could your computer be taken hostage?

In August, we discussed hackers attacking a small medical practice by breaching their security system, stealing encrypted files, and then holding them for ransom. According to slate.com there’s a new type of cyber attack people need to be aware of – ransomware.
Ransomware is a type of automated malware that locks you out of your computer and then demands money to unlock it. In a particularly frightening scheme, the ransomware uses your webcam to capture an image of your face and then displays it on the computer along with the demands.
Remember the importance of protecting your network and your machines. Ensure you have anti-virus software installed and make sure it’s up-to-date, ensure network firewalls are in place and don’t open links if you don’t trust the source.
To learn more about ransomware read, Pay Up or the Hard Drive Gets It.

Need help ensuring your network is secure? Contact H&S Computers today.

Tim-Nass-HS-Computers Tim Nass
IT Systems Engineer
616.735.3054
timn@hscompanies.com

Bank Teller Pleads Guilty to Embezzling More Than $100,000

October 8, 2012/in Fraud and Forensic Investigation/by revel

Don't leave checks out. Make sure you lock them up in a safe place.

On Monday, October 5^th, Tammy Lumbard was sentenced to 12 months and one day in prison, as well as, four years supervised release for embezzling more than $100,000 from Huntington Bank. Lumbard, a former Huntington Bank teller supervisor and universal banker, took the money by forging and cashing checks from various customer accounts.

As we head into the holiday season it’s important to take steps to protect yourself and your business from fraud. According to the ACFE’s Report to the Nations, in 2011, check tampering was the scheme of choice in 22.4% of cases for businesses with more than 100 employees and 7.6% of the time for businesses with fewer than 100 employees.

Remember, the following actions can help prevent check tampering schemes in your business:

Keep the checkbook locked up and limit access.
Institute a system of checks and balances. Have one person prepare the checks and another review the invoices and sign the checks.
Scrutinize financial statements. If something doesn’t look right, investigate further.

If you’re concerned fraud may be occurring in your business, or are interested in learning more about preventing fraud, contact Kit Powell.

Kit Powell
Certified Fraud Examiner
231.924.8035
kitp@hscompanies.com

Background Checks Available through H&S Companies

August 3, 2012/in Fraud and Forensic Investigation/by revel

Background checks can help you weed out potential problem new hires.

H&S Companies is now able to run background checks using the same database as the FBI! Background checks are an effective first line of defense to prevent bad hiring decisions, but many people choose not to use them. In addition to running the checks, H&S HR Consultants can help you establish the appropriate policies.

To learn more about implementing a background check policy, read A void Bad Hires With Background Checks, or download our free Background Check Implementation List.

Kit Powell
Certified Fraud Examiner
231.924.8035
kitp@hscompanies.com

Background Checks Available through H&S Companies

August 3, 2012/in Fraud and Forensic Investigation/by revel

Background checks can help you weed out potential problem new hires.

H&S Companies is now able to run background checks using the same database as the FBI! Background checks are an effective first line of defense to prevent bad hiring decisions, but many people choose not to use them. In addition to running the checks, H&S HR Consultants can help you establish the appropriate policies.
To learn more about implementing a background check policy, read A void Bad Hires With Background Checks, or download our free Background Check Implementation List.

Kit Powell
Certified Fraud Examiner
231.924.8035
kitp@hscompanies.com

Background Checks Available through H&S Companies

August 3, 2012/in Fraud and Forensic Investigation/by revel

Background checks can help you weed out potential problem new hires.

H&S Companies is now able to run background checks using the same database as the FBI! Background checks are an effective first line of defense to prevent bad hiring decisions, but many people choose not to use them. In addition to running the checks, H&S HR Consultants can help you establish the appropriate policies.
To learn more about implementing a background check policy, read A void Bad Hires With Background Checks, or download our free Background Check Implementation List.

Kit Powell
Certified Fraud Examiner
231.924.8035
kitp@hscompanies.com