i-law

Fraud Intelligence

Box clever

In the course of his IIR masterclass “Managing a Fraud Investigation”, Ian Henderson , Managing Director of Advanced Forensics Ltd led two instructive investigative case studies. In a previous issue editor Timon Molloy covered the search for collusive parties in a procurement fraud. This month he wants some answers to why boxes contain bricks rather than electronics stock in a warehouse.
Online Published Date:  01 October 2005

‘How can you manage it if you can’t measure it?’

Understanding the nature and scale of the problem is a first and critical step, fundamental to the development of any counter fraud strategy, says Jill Abethell , Director of Risk Measurement, NHS Counter Fraud and Security Management Service . Every organisation should strive for a robust measure of the amount of fraud that exists and a prioritised action plan for dealing with it. Without this, you will never be sure that you are correctly prioritising your counter fraud action and targeting available resources at the areas most at risk of losses to fraud.
Online Published Date:  01 October 2005

Plugging holes or hiding theft? Fraudulent financial reporting

Financial misstatement but no obvious pay-off: Shane MacDonald , a forensic accountant at The Risk Advisory Group, decodes the entries and identifies the control weaknesses that made it possible.
Online Published Date:  01 October 2005

Wanted - whistleblowers

In the current economic climate when fraud is an increasing risk for companies, why is it that employees who spot and alert the authorities to corporate wrongdoing are often treated so harshly? asks Andrew Durant , Head of the Fraud Investigation and Recovery Team at BDO Stoy Hayward.
Online Published Date:  01 October 2005

Beyond words

Research into the cues that identify deceptive written communications has come on leaps and bounds in the last couple of years, writes Isabel Picornell of QED Limited. Statement analysis is no longer just the province of the criminal investigator, the psychologist or forensic linguist. Recent exploratory studies into identifying deceptive language in textual computer-mediated communication (CMC) aims to develop tools to aid people in deciding whether the emails they receive contain truthful or deceptive information. However computerised technology develops, the basis for detecting deceptive cues in textual material remains grounded in the linguistic and structural features to which deceivers resort during deception.
Online Published Date:  01 October 2005

Bench testing: what to look for in a computer forensics consultant

A few years ago, I was writing articles that were trying to convince investigators of the value of digital evidence, Pat Beardmore , Head of Computer Forensics at Protiviti recalls. I am pretty sure we have all now moved on and most of us realise that in the majority of cases it’s almost impossible to carry out an effective and thorough investigation without looking at the IT side of things. However, it is still a new and sometimes daunting element for the investigator to deal with. This is especially the case when, as so often happens, management of the investigation is left in the hands of internal audit, finance or other personnel who cannot be expected to understand the ‘ins and outs’ of digital evidence.
Online Published Date:  01 October 2005

Bra wars, textile quotas and fraud

Gavin McFarlane of Temple Chambers Cardiff
Online Published Date:  01 October 2005

OLAF seeks to mend fences with media

European Union (EU) anti-fraud unit OLAF is trying to repair relations with EU journalists which were soured by the raid on the home of Stern reporter Hans-Martin Tillack, who was investigating the Eurostat financing scandal. OLAF is organising an..
Online Published Date:  01 October 2005

Ex-chief accountant seeks new role

Almost a year after she was sacked by the European Commission, whistleblower Marta Andreasen is still looking for work. The Commission’s former chief accounting officer, who triggered a major Brussels scandal by exposing serious weaknesses in..
Online Published Date:  01 October 2005

UN oil for food – latest reports

The release of the main report of the Volcker inquiry into the United Nations’ oil for food scandal should provide support for reformers within the global body who are seeking tougher auditing controls. US ambassador John Bolton has called for..
Online Published Date:  01 October 2005

OLAF publishes investigations manual

OLAF, the European Union’s (EU) anti-fraud unit, has published its detailed investigations manual, after a European Parliament hearing in July called for its work to be governed by an EU regulation. The aim of the manual, said an OLAF..
Online Published Date:  01 October 2005

EU fraud unit listens out for whistleblowers

An Internet whistleblowing system is to be established by European Union (EU) anti-fraud unit OLAF, through which investigators will be able to communicate with informers, who will be able to remain anonymous. The new multi-lingual information..
Online Published Date:  01 October 2005

New civil fraud procedures for tax cases

On 1 September HM Revenue and Customs began to operate a new ‘Code of Practice 9’ for cases of suspected serious tax fraud. Under the arrangements, which replace the ‘Hansard’ procedure, HMRC reserve the right to carry out..
Online Published Date:  01 October 2005

Commissioner tells member states to combat EU fraud at national level

European Union (EU) member states must tighten up anti-fraud measures at the point EU-funded services are delivered on the ground if they are to improve the integrity of the Union’s budget distribution, Siim Kallas, the European..
Online Published Date:  01 October 2005

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