PONZI SCHEME
My friend John Doe was introduced to a forex platform that pays a monthly interest rate of 15% plus. He had the option of investing his money for six months or a year. According to the investment contract, he might withdraw his funds before the end of the investment period, but only 70% of the amount invested would be returned to him. He was eager to join this investing platform, so he conducted a background check on the investment firm, checking their corporate affairs registration, confirming their registered address, and validating the directors of the firm, but he received no tangible information.
Synthetic Identity Fraud
Synthetic identity fraud, often referred to as synthetic identity theft, involves combining fake credentials with a suggested identity that isn’t connected to a real person. In order to build a new identity, thieves may use actual and fraudulent information, such as names, social security numbers (SSNs), and fraudulent personally identifying information (PII), to construct fake identities. By opening fictitious accounts and making fraudulent purchases, this new identity is used to defraud financial institutions, governmental organisations, or private citizens.
TRADE-BASED MONEY LAUNDERING (TBML)
Money laundering is no new term, especially in the world of fraud. Yearly, agencies are consistently updating their methods of prevention when it comes to money laundering schemes. Money is moved by criminal organizations and terrorist financiers to hide its source and integrate it into the formal economy through three main methods. The first includes […]
PHISHING
My friend John Doe was introduced to a forex platform that pays a monthly interest rate of 15% plus. He had the option of investing his money for six months or a year. According to the investment contract, he might withdraw his funds before the end of the investment period, but only 70% of the amount invested would be returned to him. He was eager to join this investing platform, so he conducted a background check on the investment firm, checking their corporate affairs registration, confirming their registered address, and validating the directors of the firm, but he received no tangible information.
THE FRAUD TRIANGLE
It is important we understand the factors behind the occurrence of fraud from the how, why, what, where, and who in order to combat fraud. The circumstance that leads embezzlers to the act of committing fraud was of keen interest to Donald R. Cressey, a known criminologist who developed the Fraud Triangle. The Fraud Triangle […]
PONZI SCHEME
My friend John Doe was introduced to a forex platform that pays a monthly interest rate of 15% plus. He had the option of investing his money for six months or a year. According to the investment contract, he might withdraw his funds before the end of the investment period, but only 70% of the […]
BUSINESS EMAIL COMPROMISE
Business Email Compromise (BEC) is also known as email account compromise, man-in the-email attack. Not only is this type of fraud one of the most financially damaging online crimes, but it is also costlier than other fraud attacks combined. It is becoming more targeted, there are fewer victims, but the losses are greater. In BEC […]
INSURANCE FRAUD
A person or company arranges a guarantee of compensation when there are specific losses, illness, damage and even death by paying a specified premium. This is called Insurance. Insurance can also be referred to as a contract which is represented by a policy. Here, a company, an individual or entity receives protection financially or in […]
FRAUD RESPONSE PLAN
If fraud is suspected, it should be reported to either Your line manager Internal audit Director of finance Procurement or monitoring officer An external agency A fraud response plan should be in place to help ensure that an organization responds to suspicious fraud-related activity efficiently and effectively, whether fraudulent activities have occurred. This plan acts […]
OVERVIEW OF WHAT DUE DILIGENCE AND BACKGROUND CHECKING PROCESS IS
What is Due Diligence Background Checks – This simply means checking things or conducting comprehensive investigations on companies and individuals. This could be in various areas such as when: Buying a property – here you check titles of the property and verify information in the contract Buying a business – it is important to do […]