Fraud News Update 01.15.15

Fraud News

01.15.15 – This week’s edition of the Fraud News Update features: Fraud Prevention (Is the President A Poor Pool Player?), Data Diagnoses Fraud (Hardly!), Pigskin Fraud (Attend Class?), Food Fraud (Read The Label – Why?) and Theft North of the Border (Embezzlement, Eh?).

As leaders in the fraud consulting arena, read on for more topical information and our insights, observations and unique commentary on the weekly fraud news.

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White House Behind the “8 Ball”

The President is said to be discussing two anti-fraud protection measures in his upcoming State of the Union address.

Unfortunately, in this fraud news story, written by for Time Magazine, experts are already saying that the proposed measures are either inadequate personal protections or will override existing state mandated fraud breach reporting requirements. Looks like the White House is behind the 8 ball once again.

This is really nothing new however as legislation is almost always far behind most fraud and cyber crimes by the time it’s enacted.

The key to all fraud prevention is proactively getting out in front…something these measures appear to fall well short of doing.

Big Data Diagnoses Fraud?

Uh, no. Cute headline but it misses the boat completely. Big data actually diagnoses nothing. Data is data. Absent a data mining tool data just sits there in a state of inactivity.

The subtitle more accurately describes the point of this story.

So, again, let’s be perfectly clear here…data doesn’t diagnose fraud…technology tools analyze large data sets looking for the red flags and patterns which may be indicative of fraud.

Those tools are programmed by human beings which tell the technology tools what to look for in the data sets. The people then analyze and investigate the flagged data to determine if fraud is occurring.

If A = B and B = C then A = C: the reality being that its human beings that really diagnose fraud!

Data does nothing by itself.

Pigskin Fraud

Last year we spent quite a bit of time discussing academic fraud in major D1 College Sports.

It was only a matter of time before this happened…

In this fraud news story, several members of the University of South Dakota football team stand accused of orchestrating a six figure, tax fraud scheme. Why go to class when you can do this?

A perfect example that sports imitates life. If convicted, perhaps they can play on the prison football club! The Longest Yard?

Read The Label

We’ve previously featured stories about fraud at the farmers market and seafood fraud.

Everyone tells you to read the label from food you’re purchasing to ensure you know what you’re getting. What if there are no labels? Then, what?

Or, what if there are labels…but they’re either false or misleading? Then, what?

In this fraud news story, the reporter suggests that FDA cost cutting is preventing the agency from  eliminating a significant amount of food fraud.

So, the next time someone says “you should read the labels,” ask them why?

Embezzlement, Eh?

Lastly, God Fraud. Something we’ve talked about extensively over the last year.

This fraud news story proves that fraud is fraud is fraud. People steal from churches everywhere. The country, language and denomination are irrelevant.

As with most fraud cases, there’s usually more to the suspect’s actions than the case they’re charged in. This case appears to be no different.

Not only were there a series of suspicious fires set at the church (authorities are still investigating…) but there’s also information suggesting a possible connection between the suspect and financial irregularities with several other business ventures.

Fraud News – The Bottom Line

Fraud – empowering people to break the law. It’s a way of life for some and every fraud has a story. At Fraud Solutions, fraud is our world and we’re passionate about prevention. Being proactive is key, so, follow us each week as we cover the fraud beat with added insights, information and unique commentary on stories making the fraud news.

Those are our insights. What are yours?