Archive for the ‘Prevention’ Category

2
Aug/10
18

Criminal Records: Changes in Hiring For Connecticut

As reported in the Journal Inquirer June 28, 2010, Connecticut joins the growing list of states and cities adopting what is termed the “ban the box” movement within the hiring process.

The box the article is referring to is on the job application completed by each candidate.  The question asks if the candidate has ever been convicted of a crime.

The law for Connecticut goes into effect October 1, 2010.  The article states several cities including New Haven, Hartford and Norwich has also adopted the “ban the box” change. It appears the law change will only effect state and city positions at this time.

The change does not prohibit an employer from asking the question, just not on the initial job application form.  The theory is that if the candidate has been successfully screened into a potential hiring position, during a face to face the candidate can offer details and explanations as to why they have the conviction, whereas a check box on the application could lead to a sure fire screening out of being potentially hired.

As a fraud examiner who has dealt with many individuals who have made poor decisions, permanently effecting their family, reputation and career, I encourage every employer to ensure themselves that this question regarding the potential trustworthiness of a future hire is included within every hiring process.  It’s not to say that anyone convicted of a crime should not be hired ever again, certainly that should not be the case.  However, every employer should have all the facts about a candidate’s background to allow for an informed hiring decision.

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8
Jul/10
0

Can You Prevent Employee Embezzlements?

The answer is yes, most employee embezzlement schemes can be prevented. There are practical measures any employer of any size can implement to prevent employee thefts and embezzlement.

However, due to the very nature of fraud, creative employees working within an environment constructed with ineffective or non-existent internal controls, or worse, complacent supervisors and owners who simply do not perform the reviews and control measures, often circumvent any preventive measures.

That is why detection measures need to be incorporated within the control structure, to detect a scheme as early as possible, and to minimize the loss to the organization.  Together preventive controls coupled with detection measures are any employer’s best line of offense against the risk of employee embezzlement.

The third and possibly the most important component is to ensure the organization has adequate employee dishonesty coverage.  When an employee circumvents both preventive and detection measures, the losses add up, and very often the only means to recover the diverted funds is through an insurance claim. Adequacy in this day and age should start at $100,000, but is subjective to each organization.

Last Monday my latest book was released by Wiley, Preventing and Detecting Employee Theft and Embezzlement: A Practical Guide. I encourage everyone who has employees, or who is responsible for employees within the financial areas of any business or organization, to read my latest book. While it appears to be a bit of self-promoting, I wrote this book in response to twenty years of requests from business owners and managers who direly needed a practical resource to easily follow for implementing internal controls within their business. Well, now it exists.

The book can be found anywhere on-line where books are sold. Here is one link for Amazon.

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7
Jan/10
11

Just When You Thought It Was Safe… To Buy Gas.

Credit and debit card skimming has been happening for several years now.  It has evolved over time from dishonest employees skimming your cards at your favorite stores and restaurants, to more sophisticated means – such as attaching skimming devices to ATM machines and the lock systems that allow you access to the ATMs.

It is well known that purchasing gas is one of the first things someone does with a stolen or fraudulent card, because typically there are no cameras and human intervention over the use of the card.  It either works at the pump to buy gas, or it doesn’t.  If it works, a minimal amount is purchased, and then the card is used for the real fraudulent purchases.

Skimming moved into the world of gas pumps, and appeared in articles as far back as 2008.  Identity and credit thieves attach card capturing devices into gas pumps, capturing each customer’s credit or debit card information, and transmit the card information via wireless/cellular to a nearby conspirator receiving the information on their cell phone – each customer unaware their card has been jeopardized, as the devices are installed inside the pumps.

Skimming has become so sophisticated that card information is available to the thieves almost instantaneously to their unlawful skimming, commonly transmitted to a nearby cell phone.

In a recent ad I noticed yesterday, Apple’s iPhones now have an app available to swipe, capture and charge credit or debit cards right through the iPhone.

Provided it hasn’t already been discovered and used, it’s just a matter of time that the thieves will migrate to this technology, capturing the unsuspecting customer’s card information via a swipe on their iPhone, and simply press the send button to transmit the stolen information to their co-conspirator making up fraudulent cards using customer information.

Isn’t technology just wonderful?

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