FRAUD PREVENTIONDetection & Investigation

Background of Fraud Types of Fraud Detection & Investigation

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Hegestratos vs. Boat

300 BC a Greek merchant Hegestratos took large insurance policy. 

Hegestratos planned to sink his empty boat, keep the loan and sell the corn. But he drowned.

Is correct to to assume that fraud has been around since the dawn of commerce. BALTIC SECURITY LLC

Background of Fraud

In the broadest sense,  fraud is intentionaldeception made for personal gain or to damage another entity.

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Types of Fraud

Fraudulent activity mostly performed over the media and social network.

Apx. 20 types of fraud Securities fraud, tax

embezzlelement, insurance fraud, charlatanism, advance fee etc.

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Purpose of Fraud

Defrauding people or entities of money or valuables is a common purpose of fraud.

Fraudulent "discoveries", e.g. in science , to gain prestige rather than immediate monetary gain.

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CORPORATE ENVIRONMENT

•Trust & empowerment > Creates

opportunity.• Internal or external circumstances >

Creates motivation.• As a result loss apx. 5% of Y revenue.

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Policy

Not to create environment of suspicion and mistrust.

Moreover, constant reporting to multiple controllers has to be reasonable, cost and time effective

Bureaucracy drawbacks. BALTIC SECURITY LLC

Assistance

No universal approach External independant

consultants View from aside Knowledgeable specialists

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DetectingTips/ hints may lead to uncover fraudulent activities and reduce losses. E.g. round numbers, presence of offshore firms, simple mistakes in dates, and indeed the existence of the companies.

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Investigating

Information gathering followed by interview or other relavant actions.

First hints of possible fraud are detected it has to be investigated.

Covert investigation. Not to be biased and look at the

issue from all the possible angels.

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Interview As enough info is

gathered the subject and ideally possible links shall be simultaniously approached for explanations.

Finally, depending on the harm possible solutions may be offered to correct the mistake the person done.

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Summary

Every action has a reaction. Thoroughly developed fraud

prevention proceedures able to save thousands on losses, law suits or harm to reputation.

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