Page 28 - MidJersey Business - July-August 2014

Your Business

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Security

RED

FLAGS

ACCORDING TO THE

ASSOCIATION OF CERTIFIED
FRAUD EXAMINERS, THE

FOLLOWING ARE SIGNS OF
FRAUDULENT BEHAVIOR:

Most frauds are committed

by people who have worked in the
organization for a number of years.

People who have 10 years or more
of experience with the organization

cause higher fraud losses. Why?

The longer a person is employed
by a company, the greater the trust

and responsibility. Likewise, trusted

employees are not often considered
likely candidates for fraud.

KEEP YOUR EYES OPEN
Individuals in one of six

departments commit the vast
Fraud is something that
majority of all frauds: accounting,

Athreatens every business. | operations, sales, executive/upper
by Chuck Gallagher
management, customer service, and

purchasing. If fraud occurs in your
t irst when his wife said Wall-Street defalcations, but the truth is
business, it is likely by someone who
has opportunity; and individuals in that the police were on the that most organizations are more vulnera-
phone and had some ques- ble to fraud than they may think. Whether
these six areas have the greatest op-
portunity to violate trust.
tions, Rev. Bobby thought it is a church, a non-proit, or a small
he might have run a red business that you’ve put blood, sweat, and

light and was caught by a
tears into, the chance that you’re at risk
traic camera. Sadly, the actual problem for fraud is substantial.
Fraudsters displayed one or
was much more grave. The police oicer The conversation between Bobby and
more of these red lags before or began to question him about Sue Hardy, the cops led to the arrest and conviction
during the commission of the fraud:
the church’s treasurer, and the role she of someone he once described as a pillar
living beyond their means, inancial played in the church’s business afairs. It of sainthood in their small but growing

dificulties, unusually close associa- seemed that there were some suspicions of church. Sue was a Christian’s Christian.
tions with vendors or customers, inancial impropriety and that Sue was the The backbone of the church, Sue gave of

and excessive control issues. Any of likely perpetrator.
her time, taught Sunday school, and was
these behaviors could be a sign of
the treasurer for years.
impending danger.
THE SHOCK OF A COLLAPSING ILLUSION
Sadly, regardless of the type of organi-

We hear a lot these days about identity zation, most frauds take place from within
theft, Internet fraud, email scams, or
the company’s own ranks, and more times

26 business.com
midJersey