Blog

Fraud-Ponzi scheme 25

Posted by: Christopher Arunkumar on Thursday, March 22, 2018
A fraud scheme which is named after a person himself should be an interesting one. Charles Ponzi was an Italian immigrant who moved from Italy to Boston. He was a hustler for to make a quick buck. He devised a plan to sell postal reply stamps in ...

Fraud and Tax Fraud Scammers

Posted by: Christopher Arunkumar on Friday, March 2, 2018
Three years back, it was just another ordinary day in the month of February during the Tax Season. I received a call from Mr. Rogers from the Internal Revenue Service (IRS). He threatened me with an arrest, that I would be handcuffed for not paying ...

Fraud and erroneous refund

Posted by: Christopher Arunkumar on Monday, February 26, 2018
This is an old scam with a new twist. In this new wave of tax scams during the tax season scammers have come with a novel idea of directing tax refunds to legitimate taxpayers. Once the funds are deposited into the taxpayers account a call from a ...

Fraud and your Social Security 21-2018

Posted by: Christopher Arunkumar on Monday, February 12, 2018
Thieves have now started targeting the Social Security Administration to unintentionally release funds to scammers. The fraudsters are able to get the PII (personal identifiable information) either through the Equifax breach from last year when ...

Jackpotting

Posted by: Christopher Arunkumar on Friday, February 2, 2018
Jackpotting is an attack on an ATM machine by installing malware which then spits out cash just like in Atlantic City Casino slot machine. This has been a trend in Europe and Asia but has not yet reached on the same large scale in the US. Thieves ...

Fraud and prison sentences

Posted by: Christopher Arunkumar on Friday, January 5, 2018
This year, let us start with looking at prison sentences, some of them so lengthy it goes beyond our imagination. I believe Ponzi scheme convictions rank the top in-prison time in any country. Thai fraudster sentenced to 13,275 years in prison ...

Holiday Scams

Posted by: Christopher Arunkumar on Thursday, December 21, 2017
It is the season to celebrate the holidays. Joy and laughter is in air. Perhaps snowfall on Christmas day? Black Friday Shopping and more Cyber Monday shopping online is in the past and the last minute rush to buy them in time to give gifts to your ...

Pay it Forward |Tax Hotline | Master your finances

Posted by: Christopher Arunkumar on Monday, November 20, 2017
Tax Help Hotline
Pay it Forward is volunteer program from the NJCPA wherein CPAs go to High Schools and encourage students to choose Accounting as a Major in the colleges. One of the benefits should students chose Accounting as their major can apply for scholarships ...

Fraud Awareness Week November 12th-18th 2017

Posted by: Christopher Arunkumar on Tuesday, November 14, 2017
It is the season to scam, con, swindle and sucker the gullible, the sophisticated and the average Joe or Jill. The ACFE has great resources on fraud prevention, detection and investigation. Their Motto “Together, reducing Fraud ...

Scammer attempting to con Sir Richard Branson

Posted by: Christopher Arunkumar on Friday, October 27, 2017
Sir Richard Branson received a call from the “Ministry of Defence” from Britain when he was hunkered in his bunker in Virgin Islands during the recent hurricane for $2 million dollars. The scammer was requesting his assistance in ...

One man and 100 Million reasons to steal

Posted by: Christopher Arunkumar on Friday, October 13, 2017
Could an ethics office of a company steal a One Hundred Million Dollars? Yes, it is possible. That DID really happen a few months back this year. The treasurer of ABB Myeong-se Oh, a Swiss based global engineering company in South Korea ...

Profile of a Fraudster

Posted by: Christopher Arunkumar on Friday, October 6, 2017
The ACFE (Association of Certified Fraud Examiners) prepares a report called The 2016 Report to the Nations on Occupational Fraud and Abuse based on a survey conducted among all the CFEs in the Association. This Survey is a very informative tool ...

Breaches

Posted by: Christopher Arunkumar on Friday, September 29, 2017
It is the season for breaches. Yes, cyber breaches, that is. Valuable, crucial and client sensitive information is exposed to the world wide web for malicious use. September was not a great month for these three companies: Deloitte, Equifax and ...

PNC Bank presentation on September 13, 2017, a monthly Plainsboro Networking event

Posted by: Christopher Arunkumar on Monday, September 25, 2017
The topic was how to protect against business fraud. Usually my presentations begin with a quiz. I show pictures of famous fraudsters and ask them to who did what and reward them with prizes. The audience could guess 2 out of three names who ...

Ghost Employees

Posted by: Christopher Arunkumar on Friday, September 22, 2017
A ghost employee is defined as one who is on the payroll of the company who is NOT actually working for the company. He or she could be a former employee who has no longer with the company or a real person or fake person whose information is entered ...

Misrepresentation of financial statements

Posted by: Christopher Arunkumar on Friday, September 15, 2017
A company may commit financial statement fraud to deliberately misrepresent the ‘health’ through an intentional misstatement, omission of material facts such as amounts on the Balance Sheet, Profit and Loss and Cash Flow Statements or ...

Whistleblowers

Posted by: Christopher Arunkumar on Thursday, August 31, 2017
Whistleblowing is type of reporting made by either by an employee or a private person for fraud, waste, abuse, non-compliance with rules or misrepresentation of financial statements. An act of wrongdoing by a public employee working for the ...

Ponzi Scheme

Posted by: Christopher Arunkumar on Friday, August 25, 2017
Ponzi is a type of fraud made infamous by Charles Ponzi in 1920s. His idea of making money was to take advantage of different prices due to currency fluctuations between countries for stamps. He had these coupons which could be exchanged for stamps ...

Bribery and Corruption

Posted by: Christopher Arunkumar on Friday, August 18, 2017
The Association of Certified Fraud Examiners (ACFE) formally bribery as the offering, giving, receiving or soliciting anything of value to influence an official act. Corruption as "the wrongful use of influence as a benefit for the actor or another ...

Fraud and Reputation Loss

Posted by: Christopher Arunkumar on Monday, August 14, 2017
It takes 20 years to build a reputation for the company and five minutes to ruin it. Warren Buffet The tone from the top in a company is hyper critical on how a company conducts itself in the marketplace, provides value to the shareholders and jobs ...

Useful Websites

Posted by: Christopher Arunkumar on Friday, August 4, 2017
Informational Filing an online complaint ICC (Internet Crime Complaint) with the FBI (Federal Bureau of Investigation) https://www.ic3.gov/default.aspx Do you want to information on your financial adviser or your brokerage firm? ...

Types of Fraud

Posted by: Christopher Arunkumar on Friday, July 28, 2017
Generally, per the ACFE (Association of Certified Fraud Examiners), there are three primary types of fraud and they are Corruption, Asset Misappropriation and Financial Statement Fraud. Corruption Corruption occurs when one party pays to obtain ...

What is Synthetic identity theft?

Posted by: Christopher Arunkumar on Friday, July 21, 2017
A fraudster picks a victim by combining real with fake information. The fraudster uses real Social Security number of the victim but with a different date of birth and provides a fake name and address. The synthetic identity is established by ...

CEO Fraud

Posted by: Christopher Arunkumar on Saturday, July 15, 2017
CEO fraud is another name for BEC= Business Email Compromise. This is not the typical type of fraud perpetrated by the CEO of a company. In the past CEOs from Worldcom-"Bernie" Ebbers, Enron-Kenneth Lay & Jeff Skilling, Adelphia Communications ...

Reputation

Posted by: Christopher Arunkumar on Friday, July 7, 2017
Why is reputation so important for a business? Let me give you an example. I had a Cross gold plated ballpoint pen, which I had received from a client for a job well done. This pen may have been used for five years or so when the turning ...

Mitigate Fraud

Posted by: Christopher Arunkumar on Friday, June 30, 2017
One of the preventative measures to stop fraud in a company is that all employees should take mandatory vacation. One of the reasons why a fraud goes undetected in a company for a prolonged period of time is that the fraudster needs to be in total ...

Asset Misappropriation-Cash Receipts

Posted by: Christopher Arunkumar on Friday, June 23, 2017
When a business has significant cash transactions such as restaurant, nail salon, gas station or a grocery store it is susceptible to fraudulent schemes-cash skimming and cash larceny. Cash skimming Cash skimming happens when cash does not hit ...

Internal Control Structure

Posted by: Christopher Arunkumar on Thursday, June 15, 2017
Internal Control structure means the processes, which are in place in a company by way of policies and procedures to mitigate, prevent and detect fraudulent activities. ICOFR stands for Internal Control over Financial Reporting, which can summed in ...