SCAMS TO WATCH OUT FOR DURING THE HOLIDAYS AND TIL NEXT YEAR

holiday-scams

Fraud is a year-round threat, but it is especially prevalent around the holidays. With people often very busy and pre-occupied with a million things, fraudsters will exploit every avenue they can; hence, it surely pays to be vigilant at all times.

As we observe fraud awareness week, we’re sharing with you 8 of the most prevalent scams at present time so you can protect yourself from these types of fraud throughout the rest of the year and until 2016!

Disaster Mitigation Scams

Convincing you to avail of disaster mitigation plans only takes a few tugs at the heartstrings (and pocketstrings!) – something that’s easily accomplished around the holidays and beginning of the year when people are more apt to make rushed decisions. Some disaster mitigation companies inflate their damage estimates by as much as 500%, and some get extra cash by using unnecessary equipment thereby making dishonest money off of you.

Bank Draft Scams

Counterfeit cashier’s checks and bank drafts are being issued left and right on a daily basis. If you’re a business or an online seller, you’re especially vulnerable. Be on the lookout for someone paying you a check for far more than the cost of your goods or services and then asking you to give them cash for the overage.

Straw Ownership of Companies and Businesses

Clinics and medical facilities must be licensed to physicians so that they can conduct business and that’s good practice because it can help protect the public. The problem is that these days, some doctors only act as false owners and so the clinic truly operates under someone else. Clinics like this often over-bill their services and you as the consumers suffers in the end by having to pay higher insurance premiums.

Unnecessary Mobile X-Rays

Some companies use mobile x-rays as an opportunity to charge a lot of extra charge in the form of transportation and set-up fees. If your healthcare provider wants to schedule in-office x-rays when it is perfectly easier for your staff to just drop by their clinic (which is conveniently nearby), you know that you’re being taken for a ride.

Credit Repair Fraud

If you have a lot of debt and may be tempted to use a credit repair company to help erase or fix your debt, chances are that you are better off just paying your debt rather than wasting your money availing of their services as they often don’t really help you.

Policy Procurement Fraud

As more and more consumers purchase policies online, policy procurement fraud has become more prevalent. The scammer starts by recruiting insured people like you, convince you to apply for policies, then falsify documents to either charge you more or stage a fake accident so that they can file inflated claims.

Internet Money Laundering Scams

Most internet money laundering scams presents itself as a form of a business or employment opportunity. You’d be contacted by the scammer and will either be sent a job offer or a business proposal that’s very difficult to resist. Next thing you know, the scammers will be sending you a check to buy stuff for them (and you can keep the change), or to process funds for them using your own bank account. The money could be real or not real but if you’re caught facilitating this type of fraud, keep in mind that you can be thrown in jail even if you are not fully aware of what’s happening. Some may try to get your bank or personal information over the phone and hire you without even having an interview. Remember, if it is too good to be true, it probably isn’t true!

Identity Theft

Scammers can either get your details by hacking into various databases or presenting you with fake information to make you share your financial details. Identity theft is perhaps the most serious of all the fraudulent activities in this list because not only will you lose a lot a money, you can also suffer from a damaged reputation and credit score. With effects that can possibly last your entire life, getting your identity stolen is surely the most devastating fraud that can happen to you.

Need help or have some questions about protecting yourself from scams? Feel that you’ve been victimized by one of the scams discussed above? Our private investigator services include both business and individual investigations in and around Toronto. Contact us and we’ll help you get to the bottom of it.

 

Insurance Fraud Prevention Tips and Tricks

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Although only a very small percentage of individuals commit insurance fraud in Canada, it does affect everyone, whether you may be aware of it or not. When a lot of people game the insurance system, the companies offering insurance services have to hike up their fees to cover the expenses. Not fun for many, but then fraudsters only care about themselves. This is why everyone should take an active role in protecting themselves from insurance scams.

Protect Yourself from Being a Victim of Insurance Fraud

So what constitutes insurance fraud? Insurance fraud happens when an individual or a group of persons deceives an insurance provider to get some money. They do this with full knowledge of the act and can be very resourceful when fabricating or exaggerating a claim.

Because insurance fraud can occur in so many different ways and may involve a wide range of participants, protecting yourself from it needs more than just common sense. You’d have to know the tell-tale signs of insurance scam so that you can proactively avoid falling for it. Below are some tips and tricks on how you can protect yourself from insurance fraud.

Tow Truck Service Insurance Fraud Prevention Tips

Although regulations on how tow truck companies should conduct business varies across Canada, there’s a general set of guidelines on how they should act professionally. The first thing you should do in case of an auto accident is to call your insurance broker and of course, do not allow your car to be towed if there are any red flags that show questionable business practices.

  • Do not be tempted to use the first tow truck driver who’ll show up.
  • Ask to see the tow truck driver’s license and tow company license.
  • It is best to use a tow truck company that is recommended by your Roadside Assistance Coverage (if you have one).
  • Do not get swayed into using healthcare providers and auto repair shops that are recommended by the tow truck driver. Some drivers get referral fees when they bring in customers/clients to such businesses and that is a questionable business practice. You should choose auto repair shops and healthcare providers that you are comfortable with.
  • Do not sign an incomplete form that is handed to you by the tow truck driver and be sure to read the fine print.

Healthcare Providers Insurance Scam Prevention Tips

Although it is very important that you get treated for any injuries as soon as possible, it is also very important that you receive treatment from an accredited a qualified healthcare provider.

  • It would be best to choose a clinic from a trusted network or ask your family doctor for referral when it comes to choosing healthcare providers. The tow truck driver isn’t the most reliable source of information on this matter.
  • If your instinct says something is not right, it’s most likely true.
  • Note that the document that you would sign should list your actual injuries and symptoms only. Any exaggeration or additional ‘injuries’ written in there to increase the amount of your claim constitutes insurance fraud.
  • Do not sign any document if you have any concerns or unanswered questions. Be wary that some clinics will make you sign a form which makes you responsible for payment in case something is not covered by your insurance. It would be wise to know what expenses are covered by your policy and which are not.
  • Do not accept the use of any assistive devices unless you truly need it, and in case you need it, you may want to check if it’s covered by your insurance or you’ll end up paying for it.

Insurance Scam Prevention Tips for Staged Collisions and Fake Accidents

  • If you suspect that the accident you were in or have witnessed is staged, notify your Claims Advisor or the proper authorities.
  • Are there any odd behaviour or anything weird about the accident? If the accident is a very minor one and the passengers in the other vehicle are claiming that they have severe injuries, then it might be time to call the police (they can be a witness to the accident too).
  • Are the people in the other vehicle refusing to call the police or refusing to provide information about themselves or their vehicle? You may have a reason to be suspicious.
  • If vehicular contact was clearly avoidable and it seems that the other vehicle went out of its way to make contact with your vehicle just to cause a collision, this might be a staged collision.
  • If you can, record any important information about the other vehicle. License plates, names of passengers, and injuries are all pertinent data. Take photos and/or videos as much as possible. This prevents fraudsters from claiming a lot more injuries and adding fictitious passengers to get more insurance money later.

Thinking you might have been a victim of insurance fraud or do you suspect that someone might be involved in insurance scamming? Then you might want to avail of our insurance investigation service. As one of the leading private investigators in Toronto, we’ve investigated and helped stop scams in their tracks. Contact us for a confidential assessment today!

Do you Need a Cyber Security Plan for Corporate Risk Management?

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Senior management and corporate boards often do not concern themselves about planning for risk management. They care more about the ‘business’ aspect of the company, focusing mostly on strategy and success of operations. This has to change, but why?

In today’s world, there are a lot of threats that can pose a very serious harm to every business. Cyber-intruders and hackers can wreak havoc on an organization’s system if they can find a way to access it. Having measures in place to protect one’s business from such attacks is one of the smartest actions every business leader can make.

Adding Cyber Security is a Smart Move

Gone are the days when corporate leaders can simply call upon the services of some information technology specialists and get cyber security risk management off their to-do list. These days, information governance is one of the biggest chunks comprising an effective corporate risk management program. Just a single breach in data management can mean extensive damage for an organization, more so for web-based businesses.

Every company should have a cyber security system that features an incident response plan to make sure that possible damage is kept to a minimum should a data breach occur. Not only that, but companies should be willing and able to devote attention and resources for the assessment of data vulnerabilities and having enough safeguards in place to protect against intruders such as hackers.

Minimizing Cyber Risks

Investors should make cyber risk management one of their top priorities. This means that the corporate board has to take a more active role in this area and start asking the tough questions. Questions such as whether the organization has an incident response plan for ensuring minimal impact in the event of a security breach, if there are people who have been assigned specific functions when an incident response plan needs to be implemented, and if the company has a way to ensure that everything will be properly executed and monitored in case of a security lapse – all needs to be addressed.

With everything that needs to be done to make sure that your data is safe, it is easy to be overwhelmed. You have to keep in mind though that the key to protecting your organization from cyber risks really just rests on having a sound cyber security system in place.

Think about it, crisis management will only be needed if a breach does occur. This means that instead of channeling your resources to crisis management, the smarter course of action would be to invest in how you can protect your organization from cyber intrusion. If there is no damage, there would be nothing to clean up, much like the saying that an ounce of prevention is better than a pound of cure.

A tip for minimizing cyber risks would be to assess whether you have any vendor-created cyber security risks. This is not to say that internal risks do not exist, but rather a reminder to take a long hard look at every small detail.

Get Involved

Although the top tier management can rely on information technology specialists to run the cyber risk management program, it is best if the senior managers and board members would brush up on the possible technology issues that may arise, more so if they have key roles to perform in the implementation of the company’s incident response plan.  For best risk management when a cyber attack does happen, who to report to and who will make decisions have to clear.

Run Drills                                                                     

Once the cyber risk management plan has been laid out, having a cyber-fire-drill of sorts would help your organization pin point strategies that work and those that do not, thereby helping you fine tune your plan for best results.

Not sure how safe you are against cyber attacks? Contact the best private investigators in Toronto for a cyber risk assessment and consultation today!

 

Why Employees Steal – A Closer Look at Dishonest Behaviour

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What makes an honest employee engage in dishonest behaviour? This question has baffled HR recruiters and psychologists for as long as the history of employment has existed.

In today’s world, no one can truly afford losses caused by internal theft to simply go by. Unaccounted losses may not seem like a lot at first, but are you aware that a total of about $16 billion of revenue is lost to dishonest employees on a yearly average? That’s about 43% of all losses combined!

With how much is at stake by letting fraudulent employee behaviour continue, allowing it to continue would be akin to flushing money down the drain; but then, how can it be stopped? What pushes someone into stealing from one’s place or employment? Is there something that differentiates a perpetrator of white collar crime as compared to a common criminal?

Contrasting Theories

The Cultural Deviance Theory explains why some people commit crime but the story of the thieving employee does not fit into that. This creates an enigma for psychologists, who cannot equate someone who steals company merchandise to a person who commits armed robbery.

The Cultural Deviance Theory also states that cultural forces can result to crime. This translates to expecting a higher prevalence of crime and deviant behaviour from the group of less affluent individuals – so why is it that we often hear of employees who are being paid higher wages being found to be stealing as well?

If there’s one thing that’s a constant for real hardened criminals and the office thief, it would be the fact that both exhibits low self-control. It seems that no matter what an individual’s economic or social status is, it is the lack of control that drives someone to engage in unsavoury behaviour.

Possible Dishonest Employees – A Profile

Below are the universal character traits of people with low self-control who may be more prone to committing white collar crime:

  • Unable to form meaningful and persistent attachments
  • Impulsivity
  • Selfishness (not caring about the rights and privileges of other individuals at all)
  • Unwillingness to take responsibility for one’s actions
  • Poor judgment and planning in achieving goals
  • Incapacity to take responsibility for failures
  • Being non-dependable
  • Propensity to create drama over petty things
  • Not caring about social group maladjustment

The list of character traits above gives us a better understanding of who may commit retail crime behaviours so that they can be stopped – but why have this list in the first place? Since all employees have an equal opportunity to steal, actually doing the act means that the individual has made the decision to do so. The deciding factor is an internal one (character) rather than an external one (opportunity).

Preventing and Deterring Employee Theft

Because a person with low self-control will most likely take advantage of an opportunity to steal, having a consistent warehouse or store presence as well as implementing awareness programs is the way to go to prevent this from happening.

Examples of establishing consistent presence can be through store security visits, monthly audits, and having a mystery shopping program. Basically actions that convey that operations are being continuously monitored.

As for training and awareness, having meetings and perhaps an employee newsletter featuring your policies and theft-busting measures that are being implemented are effective deterrents for employees with low self-control.

Reducing cases of theft and fraud in your organization does take time and effective risk management. Armed with the right information on identifying dishonest employees and on how you can deter them from committing fraud, you can transform your organization into a fraud-free zone.

Need help with corporate investigations and surveillance? Contact us and we can talk about how we can help you with that.

 

 

 

 

3 Liabilities in Dishonesty Interviews

interview

Interviewing is often viewed as a process that only entails a bit of common sense; however, in the case of potential dishonesty, conducting an interview becomes a complicated process.

Whether you’re trying to gather some crucial information for a case’s resolution, limiting your list of suspects by process of elimination, or wanting to get an admission of fault from responsible parties; knowing how to conduct an interview professionally can save your company from ugly consequences such as low employee morale, possibly terminating the wrong person, or being faced with a wrongful termination suit.

Remember that an interview which seeks to get answers is a conversation with a purpose. Untrained or inexperienced interviewers who have no inkling on how to direct a conversation can complicate an incident and create more problems for your organization.

Below are the 3 liabilities for dishonesty interviews and how you can use them for finding a solution in cases of possible fraud.

Resolution

The main purpose of conducting dishonesty interviews is to get an admission from the individual(s) who’s responsible for the reason why there has to be an interview in the first place. This is where the significance of professionally directing the conversation truly comes into play, but how?

Using the wrong terms such as introducing the word ‘steal’ can make the interviewee clam up or give you inaccurate details, thereby resulting to sending back the dishonest individual to his or her position where that person can continue to create losses. Another thing of note is that by not being able to identify who the dishonest person is via interview, that individual now possesses a knowledge of how your fraud investigation process works, making him or her more adept on how to avoid getting caught later.

It goes without saying that obtaining an admission via interview won’t be possible every single time, but if the interview was handled by someone who knows how to direct the conversation towards getting answers, then you’ll be effectively limiting future possible losses to fraud.

Accusation

One wrong move can mean either a lawsuit or sabotaging the interview so an experienced interviewer knows how and when to present an accusation. It can also create an unpleasant work environment when made against an innocent person.

There are a few instances when making a direct accusation is the way to go. An example would be if you have a video footage showing the individual in question in the act of committing the fraud. In this scenario, making an accusation will save up time and would hasten the process towards a resolution. The errant individual can then choose to simply own up to what he or she did or to continue lying – in which case you’ll have a strong evidence of dishonesty and fraud against the individual.

Never make an accusation out of frustration or out of anger. This would only result to the company and the interviewer facing a lawsuit and hindering the resolution of the predicament at hand.

Morale

Never forget that an interviewer can singlehandedly destroy a whole company’s morale. If an interview is handled incorrectly, everyone who was called to be a part of it can feel that they’ve been accused. The last thing you’d want to do is to alienate possible witnesses or to create more problems for your company.

Keep in mind that a professional dishonesty interview is geared towards taking the rotten apple(s) out of your barrel. You certainly won’t want to damage a whole barrel or place your organization in hot water for just one questionable individual.

Need someone to conduct dishonesty interviews the professional way? Then contact us and learn more about how we can help you with corporate investigations and fraud management.

Theft Prevention by Inventory Management

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Inventory accuracy is perhaps one of the most important safeguards any business owner can have against theft if the business deals with any form of physical goods. How so? Well, when you think of it, customer retention, profitability, and operational productivity are all made possible by a reliable inventory system!

In this day and age, no matter whether you are still relying on manually recorded inventory cards, or have a fully computerized system, or perhaps have a combination of the two…the benefits of inventory accuracy cannot be discounted. Just take a look at the benefits below and think of what a good inventory management can do for your business.

The Benefits of Proper Inventory Management

  1. An accurate record reduces stock-outs by helping you to make the right replenishment decisions.
  2. You and your sales reps will know for sure that what product you promised to send out will be sent out on time and be received on time.
  3. You will save time and your distribution centre will be more productive because you don’t have to waste any effort searching for missing or mistakenly recorded goods.
  4. You will have more cash for opportunistic purchases, capital improvements, and investments because your assets are not tied up in unnecessary inventory.
  5. Last but certainly not the least, a properly managed inventory in your business or warehouse is proven to reduce employee theft!

Wait, how does that work?

When you have everything recorded and in black and white, your employees cannot just take or steal items out of storage without it going by unnoticed. When everything is accounted for, there is less risk of employees committing white collar crime because they know that the likelihood of being found out is quite high.

So how do you go about this?

The When, What, and Where of Cycle Counting

Basically, cycle counting is just a form of inventory management that follows a regular schedule. Here are what you should consider when planning a cycle counting program:

  • WHEN – the best benefit you can get from cycle counting results from how often you do it. The more often or more frequent you take a record of everything, the easier it is to spot discrepancies.
  • WHAT – you do have to prioritize what to count or what to keep tabs on because you cannot track everything at the same time. More often than not, the most frequently stolen items are those that are small enough to fit in a pocket and have a high street value.
  • WHERE – items that are stored in less accessible areas and easily accessible areas of your office or warehouse is more likely to go missing. Why? If no one’s watching, thieves are more likely to go about their business.

Now, by no means are we saying that cycle counting is all you’ll need to prevent theft, but it is certainly one of the best tools you can use to reduce your organization’s vulnerability to thieving. With this said, it is still important to not let your guard down and not to underestimate a thief’s determination to commit fraud or steal from you. Other measures, such as doing background checks on potential new hires and employing other risk management solutions are still advisable.

Need professional help to safeguard your business from thieves and various forms of fraud? Then contact the best private investigators in Toronto! Contact us so we can determine what you need and talk about how we can help you.

Avoid Home Improvement Fraud

home-fraud

We are around the time of the year when a lot of people are adding some design features in their homes, fixing what’s broken, and perhaps even renovating entire rooms, and hence, we felt the need to write this blog about how you can avoid home improvement fraud.

People often think that fraud only occurs at the office or their place of work but the truth is, whenever and wherever there is an opportunity, fraud is bound to take place – yes, and it often takes just one corrupt contractor to mess up your whole home improvement plan.

As a renter or a home owner, it is often the case that there would be things that needs fixing around your place, so what you do is find a residential contractor. You see, most contractors would require some down payment, more so for pricey projects. In here lies one of the red flags with which you can avoid home improvement fraud if you know what to look for.

Seeing the Red Flag

The contractor will ask for a down payment in the form of credit card, check, or cash and below is why you have to be careful.

Cash – Down payments in cash is often held as a red flag when dealing with a residential contractor, but why? Being low on cash can mean that the contractor may be having problems handling the finances of the business.

The contractor having some financial difficulties is not necessarily a problem on its own, but it is human nature to seek the easy way out when dealt with a predicament. If that contractor is in serious debt or need of cash, your money may be used by the contractor for personal needs instead of your home improvement project. Another issue with cash is that it may be difficult to prove later on that you’ve made some payment, as an improperly completed receipt is not considered to be an adequate legal proof of having a transaction.

Checks – Checks leave a paper trail, so it is a lot safer to use than cash. Checks are also easy to track and control.

Credit cards – This option would be the safest and easiest way to handle home improvement payments. It is easy to track and control like the check, but is a bit easier and more convenient to use.

These days, all you have to do is to hand over your credit card to the contractor for it to be scanned using a handheld scanner and that’s it! Everything is recorded by the bank or banks you both are using. So if there is a need to prove any payment made at a later date, you can easily access the records through your own account. In case of fraud, there is also a higher probability of you being able to retrieve your money if you paid via a credit card.

Now that you know how to avoid home improvement fraud by checking out a contractor’s payment methods and not falling victim to the down payment scam, you might also want to take extra precautions for bigger projects. You may hire a project manager if you’re super busy or at least make sure that you’ve done some background check on all individual contractors and firms you’re considering for your home improvement project before making a final decision.

Need any help getting some information on a company or individual? Want to make sure that their business is legit and that they are trustworthy? Then contact the best private investigators in Toronto! Give us a call and we’ll surely get back to you as soon as we can. It does pay to be extra careful!

Could Your Company Be a Victim to Anti-Corruption Compliance Program Tunnel Vision?

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These days, companies from all types of industries are coming up with their own anti-corruption compliance programs; but how do we know when an anti-corruption compliance program actually works as it is supposed to?

Your company’s anti-corruption compliance program can be overly complex, can somewhat be needing some more work, or perhaps it is just the right balance; one thing is for sure though, success can’t be guaranteed by having an effective program alone.

How so?

Fraudsters will find a way to circumvent an effective program and will do everything to avoid detection – to the point of paying bribes. This is where embracing an anti-corruption compliance program comes into play, but then, it is also vulnerable to a host of problems.

One such problem is when the leaders of the organization develops tunnel vision and thus relies so heavily on the program that they forget all about continued risk mitigation and exercising vigilance. When this happens, the organization is left vulnerable to fraudulent activities.

So what are the red flags that your organization may be suffering from tunnel vision as far as an anti-corruption compliance program is concerned? We’ve got that covered below:

Lack of Follow Through by Senior Leadership and CEO

Just having a program isn’t enough when the leadership does not understand how the program is supposed to work and what it takes to make it work. The absence of senior management commitment and ownership will render the program ineffective.

Business Managers Have Not Embraced Compliance

The best way to gauge a company’s commitment to compliance (on everything, and not just anti-corruption) is to see if the business managers are doing their part in ensuring compliance with anti-corruption laws and policies. This is especially true in sales. Business managers who do not monitor employee activities and don’t care to remind everyone of the policies are basically not taking any accountability for whatever happens with the program.

Disconnection Between Financial Controls and Anti-Corruption Compliance

Any potential unauthorized usage of funds should be monitored by CCOs, managers, and financial officers. Failing to do so by not having proper coordination of the anti-corruption compliance and financial controls can result to corrupt actions such as the company officials bribing government employees to gain favours or special treatment. Simply put, inadequate connection between financial controls and anti-corruption compliance can mean giving access to some funds to be used for bribery.

Lacking Due Diligence Process

If the due diligence program is not as it is supposed to be, it will be ignoring mitigation strategies and careful risk-based analyses. For instance, if the employees have no understanding of red flags and other possible signs of corruption, then there is no way they can report if they witness it occurring in the organization.

Having a Program for Reimbursement and Hospitality Expense

There is no real problem with simply having a reimbursement and hospitality expense program IF it requires pre-approval, has annual limits, and collects data of all interactions and meetings with recipients. Lacking these things can mean serious bribery risks.

Want to be on top of fraud prevention and detection in your organization? Then you might need the services of the top Private Investigators in Toronto! Contact us and find out more about how we can help you!

Alerts VS Alarms in Fraud Detection and Loss Prevention

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Most companies we’ve spoken to wanted to have some sort of an alarm system that would let them know when their fraud control measures have detected fraudulent activity. Although that sounds great, we often tell clients that what they would truly want are alerts and not alarms.

But why?

Here’s our thoughts on this: When it comes to loss prevention, you would want to catch any possible activity that amounts to a loss before the actual loss happens. Sure, catching something after the fact is great as well, but why wait for an actual loss to happen before acting on it?

Alert VS. Alarms

On our previous blogs about fraud prevention and detection, we’ve talked about how the nature of fraud and how it is an ever-present risk for any organization big and small. Try as we all can, there is no 100% guarantee that any organization can become fully fraud-free. That is a fact.

So what we can do about this?

What we can do is to minimize possible loses from fraud by detecting it as early as possible through various measures. There’s data analytics for fraud control, frequent and aptly designed internal audit practices, having whistle-blower programs, and many more. Question is, which ones are better? Should you go for measures that alert you of possible fraud or measures that sets the alarm bells of fraud ringing?

Why You Need Alerts

We are not talking of setting anything that will make your employees fear of being suspected of fraud if they are to do anything that would trigger an alert. This is far from that. We’re just saying that there is more value (and more money) saved by going for fraud control measures that triggers an alert rather than an alarm.

Why so?

As we’ve said earlier, preventing loss due to fraud is a lot easier and cheaper than trying to recover loss after fraud has already occurred. But this isn’t just about that as well. There is more to going for alerts rather than alarms and the results are quite surprising!

Do you know that by going for actions that alert you of fraud, you will save up on company resources? There are also studies that suggests an increase in personnel performance after these measures has been set in place. Whoa! What? This is because alerts are not only a means to control loss but are also a means to measure performance; and hence can encourage personnel to be better at what they do.

Here are 5 specific alert features that have been found to improve employee performance

  • Store security visits
  • Statistical snapshot
  • Mystery shops
  • Short-form key performance indicators
  • Employee relations

The 5 alert features above may work or not depending on your organization type, but for the most part, they are time-efficient, cheap to use (and analyze), and can be tweaked according to your business-type. What’s more is that they can be built into a simple computer file to help you with organizing everything. This way, you can be more pro-active with protecting your company as well as gathering data about it for future use. Remember, the key to the best loss prevention practices is all about getting valuable information as quick as possible. That’s what alerts are for!

Need some help in starting a fraud-alert program? Then contact the best private investigators in Toronto! One of the services we offer is all about effective fraud prevention and detection. Talk to us and let us help you kick fraud to the curb!

 

 

The Hard Truths about Managing Fraud

fraud

Organizational fraud is everywhere, and it is costing businesses trillions of dollars in annual loses. As we’ve mentioned before, fraud can and does occur at all levels and at all types of organizations. Fraudsters are everywhere! They occupy all rungs of the organization ladder and are always finding ways to steal from their organization to enrich themselves. Why would you place your organization at a financial peril when there are ways that you can minimize or dismiss fraud?

The Backgrounder on Fraud

For every fraudster there is, there is an underlying need, a rationale, and an opportunity. Situations such as financial pressures, addictions, or family troubles can turn even the most trustworthy individuals into conniving thieves. It is just human nature and everyone is susceptible to it. Question is, will you let yourself fall victim to this?

Managing Fraud

Though it is true that fraud exists in every nook and cranny of all organizations, there is no need to see fraud prevention as an exercise in futility. Fraud, just like any other not-so-palatable things in this world is manageable (yes, just like any other risks!) and how you approach it will determine whether you’ll fall victim to it or be a victor.

But how?

It truly is all about risk management!

When you know the sources of the risks, what you stand to lose with those risks, and the what tactics you can use to minimize those risks, you’ll be in good hands, especially if you do the following actions:

Identify Fraud Opportunities

Fraudsters will tend to go for the biggest opportunities for committing fraud. This means that employees involved in financial operations and the like have a higher probability of committing fraud. Another factor is the position in the organization, since higher loses results if someone with a higher position commits fraud.

Work with Everyone

You’ll need all the help that you can get to detect fraud, and that involves help from possible whistleblowers. Having a great whistleblower program that protects the tipper from retaliation can be one of the best tools for fraud prevention.

A well-designed whistleblower program goes a long way in fraud detection and prevention. It helps facilitate an anti-fraud culture that eradicates fraudsters and favours the organization.

Periodically Tweak Your Process        

Because of the pressures of cyber-automation and globalization, organizations are evolving at a very fast rate these days as compared to just a few years ago. This means that the fraud-control measures that your organization installed a few months or a few years ago may now be obsolete.

Don’t forget that technology is continually evolving and that with changes comes new ways to exploit any weakness in your process. This is why it is of utmost importance to revisit your anti-fraud policies (on a yearly basis at the very least) to evaluate if they are still at par with what’s needed to keep loses at a minimum if fraud should occur.

Fraud is never going to go away, but you can minimize your losses to near zero by protecting yourself and understanding the hard truths about managing fraud. Want to know more about how you can do this? Then contact us and experience how it is to have the best private investigators in Toronto on your team!