Action to Tackle Fraudulent Asbestos Surveyors Defrauding Householders and Businesses and Threatening Health

The British Occupational Hygiene Society, the leading awarding organisation for professionals involved in the identification, protection and analysis of asbestos is leading a national initiative to drive out criminals from the asbestos surveying industry.

Asbestos, a substance found in hundreds of thousands of UK buildings becomes cancer causing when it is disturbed, resulting in around 5,000 preventable deaths a year. 

Identifying the presence of asbestos requires specialist knowledge to safely survey, identify likely places where is present and to safely take samples.

However, around 100 companies in the UK are offering asbestos survey services without any training or qualification or using fraudulent certifications. The result is seriously endangering the health of householders and often goes hand-in-hand with sharp business practice and unlawful and dangerous removal practices.

BOHS has been assisting trading standards and a separate investigation by the Daily Mail newspaper to bring fraudulent asbestos surveyors to justice.

Responding to a national initiative, announced this week to tackle qualifications fraud Ofqual’s action plan for the prevention of qualification fraud – GOV.UK, BOHS is announcing the launch of several initiatives aimed at keeping businesses and homeowners safe from this criminal enterprise.

A national Register of Qualified Asbestos Surveyors is being launched, in consultation with the Royal Society for Public Health, which also awards in this area. The register will go live next month to enable individual surveyors to have their qualifications checked by those using their services, their employers and regulators. 

The scheme runs alongside work being done by ARCA, the asbestos contractors trade body, to ensure asbestos surveyors using the CSCS scheme have validated qualifications when working on construction sites. It also underpins the national quality scheme run by UKAS to accredit asbestos surveying companies.

Asbestos surveyors will have six months to verify their qualifications and have the opportunity to join a voluntary complaints scheme run by the professional body for asbestos experts, the Faculty of Asbestos Assessment and Management (FAAM). Verified surveyors will be able to use a logo, with an embedded verification QR code to provide clients with assurance of certification.

FAAM will also be issuing a “buyer’s guide” in March, aimed at helping businesses and individuals make procurement decisions to minimize risk and help them comply with the law.

In addition, FAAM will issue a standards statement, which outlines the competences and skills required to undertake safe and effective surveys, bringing together regulatory guidance and standards to help businesses, lawyers and insurers have a clear understanding of the professional standard of competence and care for contracts and in the case of claims in negligence.

BOHS CEO, Professor Kevin Bampton told That's Business: “Last year the scale of fraud on homeowners had got to the extent that a Google search was more likely to offer you a scam provider than a legitimate one. You can’t see, smell or taste whether asbestos is present, but the health consequences of disturbing it can be very significant and it can be a blight on property. 

"Criminals have been exploiting a loophole in the law that puts the burden on the building owner to manage asbestos. By preying on fear and the difficulty in detecting the substance, they have been ripping off businesses and home-owners and putting their health at risk.”

He continues, “As the awarding organisation for those who have been trained in this complex area, we feel the need to do more to make the public aware of the risks. 

"We have to be clear that surveying a building for the presence of asbestos is a highly complex task and a qualification on its own is not enough. But without doubt, you should never employ a surveyor without a valid BOHS P402 or RSPH Level 3 Survey qualification.”

BOHS has been the leading awarding body for asbestos surveyors for decades, but recent years have seen an alarming growth in criminal activity, including the falsification of certificates. BOHS is a charity and registration including the cost of the complaints scheme and administration of the logo verification will cost each surveyor only £20.

“We strongly advocate that people use UKAS accredited surveying firms, but also recognize that there are excellent surveyors who are not in that scheme. 

"As the professional body, FAAM want to ensure that those who have a duty to manage asbestos can access the appropriate level of professional advice and guidance. 

"Our three-fold approach to tackle qualifications fraud, help intelligent procurement and make a clear statement of minimum standards of competence aims to help deliver this. We want to avoid as many unnecessary deaths and reduce criminal activity as far as we can.”

https://www.bohs.org

ScamAid Launches Global Fund Recovery Services to Support Victims of Online Scams

ScamAid has announced the launch of its global fund recovery services, aimed at helping individuals recover money lost to online investment scams.

ScamAid supports victims of unregulated trading platforms, including binary options, forex and cryptocurrency schemes. 

The company works with clients worldwide, assisting in a structured recovery process designed to pursue lost funds clearly and transparently.

With offices in London and Zurich, ScamAid operates internationally and offers multilingual support to clients across Europe, North America, and other regions. 

The company combines financial and legal expertise to assess each case individually and determine the most appropriate recovery path.

In addition to fund recovery, ScamAid places strong emphasis on education and prevention. The company aims to help clients better understand how online investment scams operate, reducing the risk of future financial loss.

ScamAid’s mission is to assist scam victims in recovering their funds as efficiently as possible, while contributing to greater awareness and accountability within the online investment space.

For more information, visit: https://scamaid.io

VAT fraud offset by selling gold bars

Image of Anthony Bond courtesy of HMRC

Gold bars, luxury watches and rare coins will be auctioned off to recover public money stolen in a VAT fraud.

Anthony Bond, 66, from Great Missenden, Bucks, was jailed for seven-and-a-half years in April 2019 for a ‘missing trader’ VAT fraud.

He lived a luxury lifestyle after stealing millions of pounds and some of his assets will now be sold to recover money for the public purse.

The auction follows a court order that requires Bond to pay back over £1.8 million or face an extra eight years in jail.

Bond’s companies, all of which were based in Chesham, Bucks, dealt mainly in scrap silver and platinum but he used the business to steal VAT through a ‘missing trader’ fraud.

Bond used stolen money to fund a lifestyle that included regular overseas travel, a Spanish holiday home, high-value cars and jewellery worth hundreds of thousands of pounds.

Seized items including gold bars, luxury watches and rare coins will now be auctioned to recover the stolen money.

Debbie Porter, Operational Lead, Fraud Investigation Service, HMRC, said: “Bond stole vast amounts of money to fund a lavish lifestyle he had neither earned nor deserved.

“Our work does not stop when a fraudster is jailed, which is something Bond has discovered with the loss of his luxury assets.

“We will continue to pursue criminals until they repay the money they stole from honest taxpayers which should be used to fund vital public services.

“We urge anyone with information about tax fraud to report it to HMRC via the online form. Search ‘Report Fraud HMRC’ on GOV.UK.”

Bond claimed to have paid millions of pounds in VAT to suppliers over a six-year period.

He used missing traders, companies he knew would disappear and default on VAT payments, to evade paying £17 million.

If Bond does not pay back £1.839,317 by 18 April 2024, he will serve an extra eight years in prison and will still owe the money when he is eventually released.

The Consequences of Fudging the Truth: Why Lying on Your Resume or CV is a Very Bad Idea

Your resume or CV is often the first impression a potential employer has of you, serving as a snapshot of your professional background, skills, and qualifications. 

In a highly competitive job market, the temptation to embellish or exaggerate accomplishments may arise, but the consequences of lying on your resume can be severe. 

In this blog post, we will explore the various reasons why dishonesty on your CV is a detrimental practice that can harm your career in the long run.

Loss of Trust:

Trust is the foundation of any professional relationship, and when you lie on your resume, you erode that trust from the start. Employers rely on the information provided in resumes to make informed hiring decisions. If they discover that you have fabricated details, it not only damages your credibility but also raises doubts about your integrity.

Damage to Professional Reputation:

In today's interconnected world, professional reputations can be easily tarnished. Employers often share information about potential hires, and word can spread quickly if you are caught lying on your resume. This damage to your reputation can follow you throughout your career, making it challenging to secure future opportunities.

Termination and Legal Consequences:

If you manage to secure a job based on false information, you may find yourself facing termination once the truth comes to light. In some cases, this could lead to legal consequences, especially if the misrepresentation is substantial. Employers have the right to terminate employment if they discover that a candidate provided false information during the hiring process.

Underperformance and Unpreparedness:

Lying on your resume often leads to a mismatch between your actual skills and the requirements of the job. This can result in underperformance and an inability to meet expectations. Employers hire candidates with specific skills and experiences because they believe those individuals can contribute effectively to the organization. When the reality falls short of the promises made on the resume, it can lead to disappointment and frustration on both sides.

Negative Impact on Company Culture:

Honesty is a core value in most workplace cultures. If you start your employment with dishonesty, it sets a negative tone for your relationship with colleagues and superiors. Building strong professional relationships is crucial for success, and being truthful from the beginning fosters an environment of trust and collaboration.

In the competitive world of job hunting, the pressure to stand out can sometimes lead individuals to make poor decisions, such as lying on their resumes. However, the potential consequences of such actions far outweigh any short-term gains. Building a successful and sustainable career is based on trust, honesty, and authenticity. By presenting an accurate and truthful representation of your skills and experiences, you not only enhance your chances of securing a job but also set the stage for a successful and fulfilling professional journey.

I have had personal knowledge of this type of situation. A barman at my local pub was very rude to me and to a colleague of his and he got a fairly simple drinks order wrong.

When I voiced my concern to the manager who was also behind the bar he said: "He is a problem, he doesn't get on with his colleagues, isn't very good at the job, but I don't see why. His CV was absolutely perfect. In fact, his last job was as the manager at the cafe in the next street."

I shook my head and said: "That's the cafe that closed down earlier this year?" He nodded in agreement. 

I added: "So, you have no way to check out his CV as the business closed down? The truth is he was never the manager. He was only ever a Saturday boy and he would sometimes spend an hour or so until closing time after school helping to clean up."

When was challenged on his bogus CV he just left the office and never returned to work.

In the UK at least lying on a CV or a resume can be a serious legal matter known as "Gaining a Pecuniary Advantage by Deception."

https://www.cps.gov.uk/legal-guidance/fraud-act-2006

(Image courtesy of Robin Higgins from Pixabay)

Time is the biggest loss when fraud takes place, claims report

New research from CIFAS, the UK's Fraud Prevention Service, has revealed it is the time taken to sort out the problems caused by fraud that has the greatest impact on victims. In response Equifax, the leading instant online credit information provider, is urging consumers to use the tools available to them to prevent fraud occurring in the first place as well as act on it quickly if they do become victim.

“We are not at all surprised to see that 41.9% of respondents to the CIFAS survey said the time wasted trying to clear up the mess of fraud was the biggest loss”, said Neil Munroe, External Affairs Director, Equifax. Also Chair of the Identity Fraud Communications Awareness Group (IFCAG), Neil Munroe believes it’s crucial that consumers take preventative measures to reduce the risk of fraud as well as arm themselves with the knowledge to able to take action as soon as fraud takes place, to reduce that loss.

“Many ID fraud victims simply don’t know that they’ve been targeted and they only realise there’s a problem when they try to take out new credit or check their credit report” continued Neil Munroe. “That’s why we introduced our alerts services that tell consumers whenever any information changes on their credit report. This is both a powerful preventative measure against ID fraud as well as helping consumers act quickly if they do become victims.”

The Equifax ID fraud alerts prompt consumers to check their credit report whenever any change occurs to their data. This could be a credit search registered by a lender when someone attempts to obtain credit in the victim’s name. Acting on this information, the innocent party can quickly get in touch with the lender to confirm that they did not authorise the search, hopefully preventing fraud from occurring.

Or it could be when a new credit agreement is registered against an individual. Whilst this means the fraud has already taken place, the victim will still be able to act quickly to confirm to the lender that they have been subject to a fraudulent application.

Tackling the threat of identity theft and fraud, Equifax Identity Watch Pro gives consumers unlimited instant, easy online access to their latest credit file, with automatic alerts within 24 hours of key changes to their credit report. It costs £7.50 per month. Or for just £2.99 per month, Equifax Identity Watch Lite makes monitoring a credit report easy by automatically alerting the individual within seven days of key changes.

“As fraudsters are getting more unscrupulous and determined, consumers must remain on their guard and review the measures they are taking to protect their personal details” concluded Neil Munroe. “Sadly many fraud victims know the person who has committed fraud against them, so when it comes to your personal information, it’s vital not to make it easy for fraudsters by being too trusting. And receiving alerts to any changes in their credit information will give victims a vital head-start if they have been targeted by fraudsters.”

If you think you have become a victim of fraud, alert your banks and credit reference agencies immediately.

You can notify CIFAS, which runs a Protective Registration service and a notice will be placed on your credit file informing lenders that you may be at risk of identity fraud on 0870 010 2091

You can also call Action fraud for advice and support on 0300 123 2040 or visit their website www.actionfraud.org.uk

Visa certifies Entersect transaction authentication solution

Visa has certified the ENTERSECT award winning second factor transaction authentication solution allowing issuers to authenticate online card purchases.

Credit cards continue to be the easiest and most convenient way to shop online. A passport to international purchases, cards provide a one-click payment solution, allowing funds to move around the globe. This has fuelled and facilitated the e-Commerce revolution and will in all likelihood continue to be the way we pay online for many years to come. 

This very simplicity has allowed fraudsters to cash in on the anonymity of the Internet. All that is required is access to a few details on the credit card, all available in plain sight, to enable fraudulent online transactions. 

“Card not present” fraud continues to be a problem for both consumers and banks, costing the UK ₤296 million in 2010 and with the increase in online purchases in 2011, this is likely have increased significantly.

The Entersect software prevents both “Man in the Middle” fraudster attacks on online banking and effectively prevents fraudulent credit card transactions, using the user’s mobile phone as a 2nd factor to authenticate the transaction. The simplicity of the software for the end user has created worldwide interest in the Stellenbosch based company as users are typically not interested in complex password solutions.

Once a card purchase is sent through to the bank, the message containing the transaction details are relayed instantly to the customer’s mobile device. The customer can then choose to either “Accept”, or “Reject” the purchase. The response is sent back to the issuing bank, and relayed to the merchant using the Visa 3-D Secure infrastructure. The software provides a number of fallback solutions based on user connectivity i.e. sms transaction authentication, USSD transaction authentication and OTP generation on the phone. A key benefit is that users travelling internationally are able to continue banking even when they use an alternate international SIM card.

Schalk Nolte, CEO of Entersect says “We are extremely proud to be one of only a handful of companies, internationally, accredited by Visa. Our software is being integrated into local and international banks infrastructure and shortly banking consumers will have first-hand experience of the Entersect solution”.

www.entersect-mobile.com

Anti-Fraud Organisations Predict Fraud Surge In 2012

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Research by UKFraud.co.uk (www.ukfraud.co.uk) of over 50 UK and European Fraud consultants reveals an expectation from over 80% of those polled, that fraud will increase dramatically across the UK and the rest of Europe in 2012.

The areas likely to be most affected include: insurance, merchants and retailers, telecoms, government departments and local authorities.

The most common fraud activities are expected to be cybercrime, internal fraud, supply chain and procurement fraud. The only area where fraud is expected to remain stable or to fall is the credit card sector where recent aggressive anti-fraud measures have forced fraud levels to fall.

Unsurprisingly, the leading cause of the increase, highlighted by the research, is the current global economic outlook, as austerity bites deep into most European states alongside rising taxes and increasing unemployment.

One of the more specific concerns in the UK, is the pressure on budgets of the state anti-fraud organisation the National Fraud Authority (NFA). Their own current estimate of UK fraud runs at GBP38bn, which is more than double the £13bn projection in 2008. Many commentators expect an even bigger rise in the new year, when the latest figures are announced. It has also become a major concern to some respondents that the NFA has had to fight for their budget since being brought under the wing of the Home Office.

And whilst some feel that government departments lack the commercial anti-fraud expertise to drive the fight against fraud forwards, the research suggests that the existence of the NFA means that the UK is seen by some as conceptually ‘ahead of the game’ across Europe.

One of the fastest growth areas of fraud is expected to be internal fraud, as employees are put on notice of potential redundancy or those disgruntled long term members of staff whose career advancement is placed on hold by budget cuts. The other major growth area is expected to be global cybercrime, not least as the UK government is seen as attempting to tackle this recently with the launch of the UK Cyber-Crime Strategy last month.

Commenting on the research, one of those surveyed Malcolm Gardner, Managing Director of Visionary Network said, “Quite simply the unusual combination of circumstances has created the ideal environment for a ‘perfect storm’ for global fraud growth. 2012 could well be remembered as the year of fraud and corruption”.

Bill Trueman, CEO of UKFraud.co.uk was keen to stress that there are options for the more adaptive organisations to avoid the impact of fraud. He commented “At the moment the international and domestic picture of increasing fraud most closely resembles a tidal surge. It is likely that despite all the organisation and effort to combat fraud, that the currently unprecedented frequency and scale will brand 2012 as the year when fraud risk was at its most pernicious. Rather than waiting for macro-economic or pan-European policy to take effect, individual and organisations are best to prepare and strengthen their own individual defences quickly and increasingly more comprehensively.”

To help organisations prepare UKFraud.co.uk believes that the most useful steps that can be taken include:

1. Ensure that your IT people understand the technical risks and they know how to protect your business from attacks, theft of customer information and infiltration. Customer details and payment details are the most ‘at risk’ data; and that access security is the most important to the police.

2. Remember though that with the best systems in the world, one of the weakest points of vulnerability is always the people using the systems, as they can easily be mis-led or conned. Ensure that customers have strong advice and warnings of the dangers. Also make sure that staff cannot access sensitive areas of your systems without proper controls and whatever they do is stored and available for audit. Make sure, when recruiting, that the bad-eggs that can get into the fabric of organisations are properly screened out before you are at risk by employing them.

3. Look at your processes for weaknesses. These include: paper that need not be used, access to unnecessary customer data, who can access what and why people may need to access such details. Ensure that people have what they need to do their jobs, but no more.

4. Make sure that your anti-fraud efforts are not just ‘after the event’ investigation-led. Ensure that you set deterrents and prevention. You should consider deploying early detection processes, systems, solutions and technology and that when you see a problem you take action to fix it properly and permanently.

5. And finally, if you employ a fraud specialist, make sure that they have the ability to take action and change the business for the better.

Those seeking more in-depth advice on fraud can write to UKFraud.co.uk’s helpdesk at fraudhelp@ukfraud.co.uk

Experian reveals identity and fraud solutions for the insurance sector

Experian has announced its solution to the growing illegal business of insurance fraud, suggesting insurers should use online tools and data analysis technology instead of traditional, error-prone methods.

Fraud in the UK is a growing billion-pound illegal business with fraudsters finding new and inventive ways of targeting weaknesses in data systems. Insurers are far from immune. Indeed, the latest estimate from the Association of British Insurers is that insurance fraud costs £2 billion a year, adding, on average, an extra £44 a year to the insurance bill for every UK policyholder.

Nick Mothershaw, Director of Identity and Fraud at Experian, said: "Over the last five years insurance fraud has risen fast and deceptions become ever more devious. It has never been so important for insurers to have the latest techniques and technologies in their armouries to help protect themselves and their customers."

Online tools enable insurers to investigate individuals under suspicion of fraud in real time, with access to a range of data sources. The most sophisticated tools allow access to a comprehensive range of household, motor and personal injury insurance claims, vehicle information, motor insurance policy details and linked addresses.

At Experian, the data, technology and expertise that is offered has helped many insurers become more sophisticated in how they combat fraud. They increasingly require robust tools to verify the identities of those they are dealing with as well as strong anti-fraud measures at the point of application and claim.

Traditional methods of identity checking can be time-consuming, costly, error prone and an inconvenience to customers, often resulting in a drop-off. Also, the results generated are not standardised, so insurers can't compare like with like and get the complete picture. Thus, this process takes time and leads to inconsistent decisions.

Experian's Identity Solutions for Insurance offers bank account verification in real-time at point of quote, sign-up and claim. The Identity Solutions also allow insurers to pick and choose what elements they want to check, combine the results and see the complete picture of a client's identity.

Investigating customers who represent a potential for fraud is time-consuming and complex. By accurately assessing risk at the earliest opportunity Experian's fraud solutions for Insurance identify fraud at the point of policy. The fraud solutions can also help identify fraud networks within the current customer base, and help identify:

-Fronting
-False Payment Details
-Use of stolen identity to obtain policy
-Use of stolen/forged documents
-Undisclosed Claims/ Convictions/Voidance
-Occupational discrepancy
-Staged Accidents

The fraud prevention solutions support a continuous cycle of fraud prevention, detection, investigation and improvement. An audit log of all significant actions performed by both system and users is kept, making it easier to ensure best practice and reduce any misuse of the system.

Experian's Payment Solutions can also help insurers realise the competitive differential of using Faster Payments for claims payments and can identify if a claimant's bank account genuinely belongs to them and is able to receive a faster payment.

FACTFILE:
Experian is a leading global information services company, providing data and analytical tools to clients in more than 80 countries. The company helps businesses with credit risk management, fraud prevention, target marketing offers and automate decision making

Experian also helps individuals to check their credit report and credit score, and offers Identity Authenticate to protect against identity theft. Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2011 was US$4.2 billion.

www.experian.co.uk

Experian data shows identity fraud attempts double in first half of 2011

Experian, the global information services company, has released its latest Fraud Index which reveals that identity fraud attempts doubled in the first half of 2011, compared to Q4 in 2010. This pushed up the overall level of application fraud attempted against UK financial services firms for the third successive quarter. Experian also predicts a nine per cent increase in application fraud attempts during 2011.

The analysis, published at Experian's annual Identity & Fraud Forum, reveals that identity fraudsters were responsible for eight in every 10,000 applications made in Q2 2011 (April - June 2011), double the number of fraudulent applications recorded in the final quarter of 2010. This was driven by a 340% increase in current account identity fraud, from five to 22 in every 10,000 applications.

Experian's analysis also highlights that 18 in every 10,000 applications for automotive finance, credit cards, insurance, loans, mortgages, current accounts and savings products made in the second quarter of 2011 were found to be fraudulent. These were five per cent higher than January to March 2011, and up nine per cent on the year.

Over the same period the number of first-party fraud attempts - where a genuine individual misrepresents their circumstances - remained constant at 10 in every 10,000 applications.

42 in every 10,000 applications for current accounts were detected as fraudulent between April and June 2011, up 20 per cent on the first three months of 2011 and 59 per cent higher than during Q2 2010. For the second quarter in a row, current accounts were the most targeted financial product by fraudsters.

Experian's Fraud Index collects data from both the National Hunter and Insurance Hunter fraud prevention systems, which are managed by Experian on behalf of its clients. Both systems provide a way for financial organisations to protect against fraud by comparing applications with previously submitted ones and pinpointing inconsistencies.

Nick Mothershaw, Director of Identity & Fraud at Experian UK & Ireland, commented: "Identity fraud is back with a vengeance. Our analysis shows that we are witnessing a surge in the number of detected identity frauds, with current accounts the number one target in the UK. Fraudsters see the current account as an easier option, giving them a springboard for money laundering and from where they can also target more lucrative credit products such as mortgages, credit cards and loans."

Fraud in YOUR business or organisation? Ten Early Warning Signs Of Fraud

Leading anti-fraud consultancy UKFraud.co.uk (www.ukfraud.co.uk) has published a list of ten common early warning signs which could alert management that fraud may be occurring in their organisation.

The list draws upon UKFRAUD.co.uk’s substantial experience across an international client base, ranging from major financial institutions, public sector bodies and corporations to SMEs and non-profit making organisations.

The list works on the assumption that whatever tools they use, be it IT based cons and false accounting or other traditional scams, the warning signs are often the same. As UKFraud.co.uk believes that awareness of the signs and a sound approach to countering them can often deter many opportunistic incidents of fraud, they have published the list here to help executives benchmark their own operations.

In the list suggested actions that can be taken to counter the risk of fraud are given following each sign. The early warning signs can include:

1. ERRATIC REPORTING: This sign is just as applicable to suppliers and contractors as it is to internal departments and functions within the organisation. Erratic, incomplete, late or excuse laden management reporting is often a classic sign that something is wrong. One of the possibilities is the existence of fraud. Further investigation will reveal that lip service and increasingly tenuous explanations are given assertively to thwart follow up activity. Common excuses used are often the frequent occurrence of IT failures, technology compatibility issues between different company systems or international systems. It is also often the case that once reports are complete; there are typically delays in them reaching those who need to review the data.

ACTION: Insist on up-to-date reporting, within a set timetable and then build this into the internal GRC (Governance Risk and Compliance) systems. Wherever appropriate adopt an enterprise-wide approach to technology to help with systems issues.

2. APPARENT PROCESS LAZINESS: A weakening of anti-fraud and data security systems can happen naturally, over time; and is normal – especially when things get busy. This occurs where the sage precautions and risk-avoidance measures get by-passed or ignored in practice as time goes by. This could just be the natural adjustment of systems to the practicalities of working life and busy peaks or it could be deliberate and sinister. However, with the seemingly right processes in place, top level management are often lulled into a false sense of security that they are actually being used, whilst the fraudster is busy at work getting around them.
ACTION: Make sure you implement the suggestions of your internal compliance managers and organise appropriate training to reinforce attitudes and practise. Ensure that the control processes, especially in tendering, purchasing, invoicing and customer controls and identifications are ALWAYS kept strong, managed and regularly reviewed. Where systems/processes are under pressure when used in practise, introduce a review process – and then adapt them promptly.

3. ORGANISATIONAL CHANGE AND THE DESIRE TO DUMP DATA: A major indicator can be the act of deletion or pressure on staff to delete, remove or otherwise dump past records following a restructure, a new division launch, a JV or acquisition. An excuse of, “oh I’m sorry those files were destroyed.” should be cause for alarm. It will be an even bigger problem where international operations are involved as it’s far harder to find or recreate evidence in a foreign territory.
ACTION: Take care to establish and log where paper documents are and when they should and should not be stored. Identify who is in control of the system processes and who is responsible for and has ownership of the records. They are not always the same person of course. Ensure that scanning, and indexing works properly and that no-one can intercept/edit documents. Also ensure that storage capacity is enough and controlled properly. Where acquisitions and mergers are concerned, ensure that all documents are available and stored appropriately and securely, especially those that relate to IP protection, IP development records, audit trails and staff contracts. In particular, if you are acquiring a business make sure that you have indemnities/penalty clauses built into the acquisition agreements that relate to the availability of data, logs, audit trails and so forth.

4. DATA INCONSISTENCIES OR ABSENSE IN THE ARCHIVES: Whether it is archive data or cross reference checks that are missing or wrong; factual inconsistencies will also occur naturally. The cheats who seek to defraud an organization will use the possibility to explain such inconsistencies and hide their fraud.

ACTION: Make sure that all files are electronically stored, with appropriate back-ups as part of your compliance systems and that no-one has the access to any files that include a DELETE capability. It is also worth having internal or external auditors sample check key files from time to time as a part of the audit programme. In addition arrange for the HR department to make it a gross misconduct issue to destroy data without recorded approval from above. This may not deter the fraudster but if nobody else is doing it the fraudster is more likely to be spotted at an early stage.

5. AUDIT-TIME DELAYS: Excuses, confusion or wild goose chases when disclosing to auditors, be they internal or external, can be a telltale sign too. We need to remember though that the audit team is not there to find fraud, rather to ensure that the correct processes are in place that will deliver appropriate protection.
ACTION: Ensure that everyone treats audits as important and make sure that they are completed on time and properly, and with appropriate audit skills. Where there have been delays or difficulties investigate why this was the case by drilling down into the detail. Make sure that the business critical and financial exposure areas take a priority and act upon all failings both quickly and completely; with follow-up audits if necessary.

6. BEHAVIOURAL ANOMALIES: These can range from acute defensiveness and resistance to attending review meetings, through to blaming strategies or even aggression when specific questions are asked about processes or figures. These behavioural anomalies have probably already been noticed through the assessment process or by HR staff. Research shows that internal fraudsters are most likely to be either ‘youngsters who cut across the processes and systems’ or ‘middle aged executives with the authority and a gripe’. ACTION: Get HR more closely involved. Then if you still have concerns about such people upon closer inspection, all the relevant files need to be pulled and checked, or you might even consider a private investigator to look deeper into the processes used by such high risk people.

7. GOSSIP MONGERS IN OVERDRIVE: Staff whispers and rumours “that all is not right” should always be taken seriously. These are, however, so often overlooked by senior management.
ACTION: Listen, take all such rumours seriously and investigate the reality.

8. TWITCHY NON-EXECS: Good non-execs provide a considered, independent and external perspective. Often they bring in specific expertise from outside the board’s immediate experience and their skills can vary from financial knowledge through to IT. When their comfort factor ‘goes south’ or when they have a ‘bee in the bonnet’ about something that does not add up or make sense, they often have good reason to worry. So must you.
ACTION: It is always good for the business to maintain a fresh supply of new thinking, new approaches and new concerns. Thus if non-execs have concerns about particular issues, one should fund their thinking by allowing them to bring in the appropriate specialist experts that can investigate matters more deeply.

9. UNOFFICIAL IT WORK: Technical staff working around the enterprise conducting unsupervised IT activity, often outside normal hours can also be a worrying sign, both from a risk and a cost perspective. Not every company is large enough to have a full IT department that might spot such issues through system audit trails. This is more common in smaller organisations where some are working more to help themselves than to help the organisation that is paying for their IT equipment and the software they use.
ACTION: Do the IT security staff look and think further than just password expiry issues? Make sure that someone is on the look out for data-theft, IPR theft, time theft (people spending all day on facebook etc.), or simple theft of IT assets. Make sure you have a proper asset register and IT audit system in place.

10. SCAPEGOATING: Where people are given a title but without actual responsibility, it can effectively cover up what is going on with those who do have responsibility or power in a situation. The fraudster’s hope is that should the balloon go up the scapegoat takes the blame, at least long enough for records to be destroyed and evidence removed.
ACTION: Make sure that you have strong and cascaded accountabilities. Ensure that people know what they should be doing, and that they are doing what is required of them. Make sure that everyone is contributing to the business objectives. Make sure HR is involved in creating or reviewing job specifications.

UKFraud.co.uk believes that by introducing a series of straightforward and cohesive processes and systems, organizations can greatly reduce the risk of fraud and in doing so, alert management to the early warning signs, should they be prevalent.

Says Bill Trueman CEO of UKFraud.co.uk “My first question is always to ask executives ‘do you really know how safe your own organisation is? Some do reply confidently. Most do not. Fraud can happen anywhere, anytime, but it is relatively straightforward to deter or discover at an early stage with the right systems and procedures in place.

"However, putting those systems in place and more importantly maintaining and updating them over time is the hard bit. There are always conflicting priorities and constraints in any organization. By averting or saving fraud losses though, organisations can protect their bottom line from taking an unexpected hit.

But only by having a cohesive anti-fraud strategy as part of the core management culture of the organisation is this be possible. There are generic anti-fraud processes and systems systems that can help support any strategy introduced and consultants such as UKFraud.co.uk are on hand to help introduce the required checks and procedures if required.

"It is our hope having published this list, that those who read it might at least ask themselves if they recognise any of the signs in their own organisations. We hope too that it might help make things that much harder for the fraudster.”

Those companies who have read the list and are worried that fraud may exist in their organisation can contact UKFraud.co.uk’s help-centre by sending an email to fraudhelp@ukfraud.co.uk.

FACTFILE:
UKFRAUD.co.uk is a leading UK based consultancy, with an impressive international track record of eliminating the risk of fraud. Its founder Bill Trueman is widely accepted as one of Europe’s leading fraud experts and a frequent commentator and writer on the issues involved. Trueman has extensive experience of the banking, insurance and the financial services sectors and is a thought leader at the forefront of many industry wide and international debates.(www.ukfraud.co.uk)

(EDITOR: Some of the above ten points can also be attributed to incompetence or laziness. Best to nip them in the bud, too, as they will cost your company money, also)

Expert calls on more to be done about fraud

A survey by UKFraud.co.uk www.ukfraud.co.uk of anti-fraud specialists in the banking, insurance, retail, IT and public sectors has questioned the impact of the government funded National Fraud Authority (NFA) to date and highlighted key areas where survey respondents felt it could do more.

Significantly, the survey highlighted that 92% of those surveyed felt that the NFA could provide greater industry leadership and strategic involvement than it does currently. It was also felt, by 86% of those questioned, that the NFA should encourage the criminal justice system to move towards a greater emphasis on fraud prevention.

Furthermore, when respondents were asked to review perceived progress of the NFA since its inception, 71% of those questioned believed  the NFA had made little or no ‘overall impact’ in supporting the work of those surveyed. Only 29% of respondents felt that they had made ‘some impact’. None of those questioned felt that the NFA had made ‘a major impact’.

But on a more positive note, the survey revealed the majority of respondents felt the NFA had been responsible for ‘improved awareness of key industry issues’ and also that it is seen as a ‘valuable resource for useful information’. There was a feeling too amongst some respondents that the NFA is seen as a valid force in driving best practice.

Amongst the areas where respondents felt the NFA could improve were the need to ‘share data between public and private sectors’ (89%), ‘supporting victims’ of fraud (86%) and ‘developing further best practice standards beyond current levels’ (63%).

Commenting on the survey, Paul Rogers, Chairman of the cards and payments community organisation Vendorcom, emphasized the need for stronger engagement with stakeholders in the fraud prevention ecosystem. 

In his view; “The output from the NFA does not reflect the contribution of its existing partners or the considerably greater impact that the NFA could make if it were to reach out more proactively to the wider cards and payments industry and those on the front line of fraud prevention.”

For his part Bill Trueman CEO of UKFraud called for the debate to widen, “There are positives to note here but there is also a great deal of the UK industry’s frustration visible in these results. Many feel that the NFA could do more and I feel that this would be easier to achieve if there was a more inclusive dialogue. This would allow the NFA to take more of a lead in developing direction and strategy, and to drive forward with action and initiatives, without being inhibited by its political public sector masters.”

FACTFILE:

UKFRAUD.co.uk is a UK-based consultancy, with an impressive international track record of eliminating the risk of fraud. Its founder Bill Trueman is widely accepted as one of Europe’s leading fraud experts and a frequent commentator and writer on the issues involved. Trueman has extensive experience of the banking, insurance and the financial services sectors and is a thought leader at the forefront of many industry wide and international debates. (www.ukfraud.co.uk)