Fraud News Update 11.08.16 – This week’s edition of the Fraud News Update features: Roach (Mis) appropriation (oh my!), Wine Fakery (probably more common than you think), Playing Doctor (now this is scary), Incentives Lead To Corporate Failure (no newsflash here!), Breaker-Breaker 19 (you got your ears on?) and Social Media (cyber war’s new frontier).
As leaders in the fraud consulting arena, read on for more topical information and our insights, observations and unique commentary on some of the weekly fraud news stories.
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Roach (Mis) appropriation – They’re Valuable…Who Knew?
Just when you think you’ve seen it all in this business comes a story which makes you realize that someone will (allegedly) take just about anything.
It’s true…roaches are disgusting and if they’re in your house you have a big problem. I guess you have a bigger problem if you raise them for resale (yes, people actually do this) and several former employees (allegedly) steal millions of them along with your intellectual property, trade secrets and the ever so precious roach poop!
The story’s completely true. No one can make this kind of stuff up!
Wine’s Big Business – But So Is Counterfeiting
People sniff their wine glasses, swirling the contents around while simultaneously staring intently if to figure out whether the contents will meet their incredible expectations.
Wine is certainly big business and it’s in the news lately. For starters, there’s lots of talk about “Brangelina” reportedly selling two international wineries. So, if you have a spare $60-100 mil laying around with nothing else to do with it you’re in luck.
Now, however, from the Bay area comes a story about an arrest in a counterfeit wine case. I’ve written about wine fakery (and food fraud as recently as last week) so this is certainly nothing new. Where there’s money there’s always fraud, so fraud in a bottle should surprise absolutely not one.
Playing Doctor (Now This is Scary!)
Kids of all ages “play doctor” at a young age… then they get older and stop.
That didn’t happen in this case, or the one before it, and it’s where fraud crosses the line from being a paper crime to a physical, life threatening crime.
The next time someone lamely tries to tell you that fraud’s a “victimless” crime, share with them examples like this doctor playing dude, any of the environmental disasters, caused by corporate greed and neglect, or the infamous Ford Pinto case. That should “cure” the uneducated of their ridiculous fraud/”victimless” crime notions.
Fraud kills… fortunately no one did here!
Incentives Lead To Corporate Failure
Let’s play word association.
You: My research shows that “incentives leads to corporate failure.”
Me: “Wells Fargo. No research needed.”
You got your ears on? c’mon.
Big rig trailer (cargo) thefts are on the rise and the insurance industry’s fighting back with the use of a variety of sting operations, hi-tech and analytic tools to thwart the theft of billions of dollars worth of merchandise annually.
The bad guys aren’t stupid however. They’re now using technology of their own to look for the anti-theft devices before they run off with the load. This is akin to “sweeping a room for bugs” before having a meeting in it.
Scott Cornell, VP at Travelers, does a great job explaining the issues, the technology, the counter theft challenges and rising problem in this article on FleetOwner.com: Watch out: 5 reasons cargo theft is a top concern for trucking.
Beware, steal a trailer and you may find the “County Mounties” out there watching your every move in a flying donut!”
Social Media – Cyber War’s New Frontier
Lastly, social media’s the new frontier for everything from marketing to sales to the customer experience and everything imaginable between.
Well, apparently, we can add cyber crime threats to this list as well. Surprised? You shouldn’t be.
The bad actors who use (abuse) technology migrate to the same hip places we’ve all migrated to in an attempt to find vulnerabilities they can exploit.
And since social’s where it’s at right now… don’t be surprised to find cyber criminals lurking around the social scene preparing to launch the next big attack. I’ve said it before and I’ll say it again, technology’s a “double-edged sword!”
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,we’re passionate about helping customer’s mitigate enterprise fraud risk management losses. 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?
For more information on how we can help your businesses prevent enterprise fraud risk, conduct fraud risk assessments, provide fraud training, develop fraud content, reduce major fraud losses and improve operational ROI, contact us to schedule an initial consultation. No obligations…just unique insights from an industry leader.