Fraud

Fraud is a misrepresentation with the intent to deceive. Fraud generally occurs when there are weak internal controls in an organization and costs organizations billions of dollars every year. According to a 2011 PwC survey, almost 1 in 10 of the nearly 4000 survey respondents experienced some type of fraud in 2011 and those responding reported more than 5 million dollars in losses. Another effect of fraud is collateral damage. In the same survey:

  • 28% of respondents reported fraud negatively affected employee morale;

  • 19% of respondents reported that fraud damaged business relationships; and

  • 19% of respondents reported that fraud damaged the company’s reputation or brand.

Some common examples of fraud include:

  • Stealing office supplies

  • Forging signatures

  • Falsifying records (personal information, corporate documents or financial statements)

  • Making false statements about product quality

  • Using corporate vehicles for personal travel

The key to any fraud investigation is to gathering information and begin investigative planning as soon as an incident has occurred. Special Investigations Group, with over 50 years of fraud investigation experience, gathers the data needed to minimize exposure and collateral damage so common with fraudulent activity. We will work with local law enforcement and provide litigation support as needed. Additionally, Special Investigations Group will work with leadership to improve controls to safeguard against future incidents of fraud.

Test Your Knowledge

The most common method employees use to steal cash from an organization is ...

A.) Fraudulently billing for goods or services

B.) Skimming money before it is entered into the books and records

C.) Collusion between bookkeepers and cashiers

D.) None of the above

The main reason employees commit occupational fraud is ...

A.) Poor internal controls

B.) Greed

C.) Personal Financial Problems

D.) Dissatisfaction with the Employer

The greatest deterrence to fraudulent conduct is …

A.) Corporate Policies and Procedures

B.) The perception that the illegal act will be detected

C.) Nosy co-workers

D.) Inquisitive Auditors

E.) The morals of the employees

The number one method by which fraud is discovered in an organization is...

A.) Analytical Techniques

B.) Accidental Discoveries

C.) Tips and Complaints

D.) None of the Above

Answers: A, D, B, C

To learn more about our services and how we can help, please Contact Us for a free consultation. 

Special Investigations Group

 

2951 Thornhills Ave. S.E.

Grand Rapids, MI  49546

 

Tel: 616.956.7000

Fax: 616.949.9041

info@specialinvestigationsgrp.com

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