Why Inflexible Controls Can Often Prove Ineffective

What Princess Leia can teach us about fraud control

Business Reporter

According to the Association of Certified Fraud Examiners (ACFE), occupational fraud (asset theft, corruption and financial mis-statements) costs an average business 5 per cent of its revenues every year, with global fraud losses totalling $3.7 trillion.

That is a startling amount of money, and shows how significant fraud losses are to businesses, as well as their shareholders and customers – who are likely to suffer lower dividends and higher prices as a result.

Read full article.

A Profitable Partnership: Kingpin Runners and Fraudulent Clinics

Kingpin runners: Masters of fraud

Property Casualty 360

Kingpin runners. Even standing alone the term commands attention. But the full breadth of what kingpin runners mean to fraud operations isn’t always clear to outsiders.

As an attorney whose firm concentrates on investigating, litigating and preventing fraud whenever possible, for more than 20 years the practice has focused on Personal Injury Protection (PIP) and Bodily Injury (BI) fraud primarily as it relates to staged automobile accidents.

There were stories about kingpin runners. 

Read full article. 

The Hot Trend in 2015: Cyber-Extortion

Gartner's Litan: Top new threats to banks

Bank Info Security

Extortionists and insiders operating as criminal "free agents" have emerged as the top two cybercrime threats to banking institutions, says financial fraud expert Avivah Litan, an analyst for the consultancy Gartner.

"Cyber-extortion is probably the hottest trend of 2015," she explains during this exclusive interview with Information Security Media Group.

Read full article. 

Robocalls Are Doing the Dirty Work for Scammers

Why phone fraud starts with a silent call

NPR

Here's an experience some of us have had. The phone rings. You pick it up and say "Hello. Hello. Helloooo." But nobody answers.

It turns out there could be someone on the other end of the line: an automated computer system that's calling your number — and tens of thousands of others — to build a list of humans to target for theft.

Read full article.

Liability Shift Makes Stores Responsible for Counterfeit Fraud

U.S. stores are about to pay up for security

Fortune

Right now, if someone steals your credit card information, it’s a cinch for thieves to use it to make a counterfeit card. If that happens and they buy, say, a diamond necklace, your bank is on the hook to pay the damage. But not for long. Starting this fall, it will be individual stores (or jewelry dealers) and their insurers that will have to pay the bills for counterfeit credit card fraud. And many retailers are very, very unhappy about it.

Read full article.

The Ominous Possibility of Fraud: Hurricane Sandy Victims 'Simply Spent'

Hurricane Sandy’s red tape makes a veteran say, ‘I’d rather go back to Falluja’

New York Times

The recent letter from the Federal Emergency Management Agency about his flood insurance claim should have come as good news to William T. Lynch, who is now on his third apartment rental since his 1920s cottage here was gutted by Hurricane Sandy nearly three years ago.

“If you believe we underpaid your claim,” it read, “you may be eligible for an additional payment.”

To FEMA, the message amounted to a rare acknowledgment to some 142,000 homeowners who filed claims with the agency after the storm that its procedures, which have been plagued by allegations of improprieties relating to engineering reports insurance companies relied upon, may have been seriously flawed.

Read full article. 

Is Tracking Stolen Information Also a Type of Securities Fraud?

Hacking case raises question on securities fraud

The New York Times

The elaborate scheme described by the Justice Department and the Securities and Exchange Commission last week, which involved breaking into computer servers to obtain confidential information about impending corporate announcements, certainly looks like a classic case of insider trading. The defendants are accused of making millions of dollars in profits by using information to trade profitably.

Read full article.