Business theft and fraud : detection and prevention

Youngblood, James 1960- (author.).

Record details

ISBN: 9781498742436
ISBN: 1498742432
Physical Description: print
xvii, 338 pages ; 24 cm
Publisher: Boca Raton, FL : CRC Press, Taylor & Francis Group, [2017]

Content descriptions

Bibliography, etc. Note:

Includes bibliographical references and index.

Formatted Contents Note:

Machine generated contents note: SECTION I INTERNAL EMPLOYEE THEFT AND FRAUD (NONRETAIL ORGANIZATIONS) -- 1. What Type of Business Is More Susceptible to Internal Theft/Fraud? -- Introduction -- Do Small Business Operations Decide Not to Prosecute Internal Theft Offenders? -- Is an Employee Who Steals from a Large Organization More Likely to Be Prosecuted? -- Are Security and Loss Prevention Procedures More Lax in Small Business Operations? -- Is a Majority of a Large Business's Operating Budget Devoted to Preventing Internal Employee Theft and Fraud? -- Do Small Business Activities Have to Rely on Individual Employees Performing Multiple Job Functions? -- Do Large Business Activities Have the Operating Budget Necessary to Prevent Employees from Performing Cross-Functional Job Duties? -- Is It Easier to Get Hired by a Small versus a Large Business Operation? -- Why Do Many Small Business Employees Not Go through a Detailed New-Hire Background Check? -- Do Most Employees Who Steal from Their Employer Commit the Act Immediately after Being Hired? -- Who Created the Opportunity for the Theft/Fraud---The Employer or the Employee? -- Developing Intelligence from Talking with Past Offenders -- Develop Intelligence from Current Employees as to How They Would Carry Out Theft-/Fraud-Related Activities -- Create Organizational Working Groups That Meet for the Purpose of Discussing Theft-/Fraud-Related Opportunities -- Consider Using Fraud Tip Hotlines -- Develop Intelligence by Using Security/Loss Prevention Personnel to Conduct Departmental Threat Analyses -- Participation in Professional Security/Loss Prevention Organizations (ASIS, ACFE) -- Participate in Tracking Security/Fraud Trends via Private and Government Organizations -- Endnotes -- 2. New-Hire Verification -- 3. Establish Operating Procedures -- Introduction -- Organizational Mission Statement -- Employee Code of Conduct -- Conflicts of Interest Policy -- Organization's Acceptance Statement on a Whistleblower Program -- Policy Outlining the Organization's Fraud Hotline Program -- Business-Related Extortion -- Theft/Fraud Awareness Training -- Endnotes -- 4. Main Components of Occupational Fraud -- Introduction -- Asset Misappropriation -- Lack of Dual Control -- Corruption -- Financial Statement Fraud -- Balance Sheet -- Cash Flow Statement -- Income Statement/Profit and Loss Statement -- Accuracy in Purchasing -- Accuracy in Invoice Payments -- Phony Invoicing -- Phony Purchasing Invoices -- Background Check for Suppliers/Vendors -- Redundancy in the Accounts Payable/Accounts Receivable Process -- Need for Job Rotation in Organizational Finance-Related Positions -- Mandatory Vacation Policies -- Employee Assistance Programs -- Endnotes -- 5. Additional Internal Theft/Fraud Prevention and Awareness Guidelines -- Analyzing Financial Statements -- Inventory Control -- Auditing and Bank Statement Reconciliation -- Endnote -- SECTION II UNDERSTANDING FRAUD/THEFT IN THE FRANCHISEE/FRANCHISOR INDUSTRY -- 6. Overview of Franchise Operations -- 7. Franchise Sales Underreporting and Brand Integrity -- Introduction -- What Is Sales Underreporting and Who Are Its Victims? -- Sales Underreporting Causing a Negative Chain Reaction -- Why Is It Necessary to Protect Brand Integrity? -- Making Sure That All Sales Are Reported (Sales Integrity) -- Sales Underreporting Victims Can Be the Parent Organization or an Unknowing Business Partner -- Employee Skimming and Sales Integrity -- Sweethearting -- Taking Advantage of Customer Reward Programs -- Endnotes -- 8. Understanding Established Comparable (EC) Sales -- 9. Operations Pending Bankruptcy and Lower EC Sales Are a Catalyst for Theft and Sales Underreporting -- Introduction -- Terminating Employees or a Reduction in Hours -- Monkey See, Monkey Do -- Reverse Sting -- Endnotes -- 10. Using Yield/Usage Programs to Identify Potential Sales Underreporting -- 11. Why the Income Statement/Profit and Loss Statement Is Vital in Detecting Theft/Fraud -- 12. Using Franchisee Tax Documents for Identifying Sales Underreporting -- 13. Understanding the Franchise Agreement -- 14. What Can Be Found in an Asset Search/Background Check -- Introduction -- Individual Asset Search -- Corporate Asset Search -- 15. Hiring a Third-Party Sales Integrity Company/Mystery Shoppers -- Introduction -- Video Surveillance/Large Purchases -- Building Blocks -- Endnote -- SECTION III UNDERSTANDING FRAUD/THEFT IN THE RETAIL INDUSTRY -- 16. Understanding Differences between Franchise and Company-Owned Operations -- Introduction -- Is There a Difference in Product/Services Offered by Company-Owned and Franchised Operations? -- Would a Company-Owned or a Franchised Retail Operation Be More Susceptible to Shoplifting/Theft? -- Is a Company-Owned or a Franchised Operation More Susceptible to Internal Theft? -- Endnote -- 17. Understanding Large Retail Operations Fraud/Theft Prevention Structures -- Introduction -- Additional Security/Loss Prevention Benefits of Large Retail Operations -- Who Can Better Protect Property and Prevent Losses---Company-Owned or Franchised Operations? -- Endnote -- 18. Understanding Shrinkage -- Introduction -- Administrative Errors as Part of Shrinkage -- Vendor Fraud as Part of Shrinkage -- Inventory Items Damaged in Transit as Part of Shrinkage -- Cashier Errors That Benefit the Customer as Part of Shrinkage -- Employee Theft and Shoplifting, the Other Main Causes of Shrinkage -- Endnotes -- 19. Employee Theft -- Introduction -- Proper Hiring Procedures for Retailers -- Rationalization of the Potential Stealing Employee -- Getting Hired to Steal -- Endnotes -- 20. Retail Theft/Fraud Identification and Prevention Measurers -- Introduction -- Benefits of Using Mystery Shoppers -- Benefits of Using an Investigative Company -- Tracking Established Comparable Sales -- Understanding Internal Retail Store Trends -- Employees Using Local Situations for Their Personal Benefit -- Endnotes -- 21. Retail Shrinkage Prevention Measures -- Introduction -- Involve All Associates in Customer Awareness -- Understanding Popular Theft Items -- Using Technology to Prevent Shrinkage -- Video Monitoring -- Electronic Article Surveillance (EAS) Tags -- Security Locking Hooks -- Product Tie-Down Devices -- Using Package Inspection at the Register or Exit Door -- Controlling Product Returns -- Never Assume Shrinkage Is from Shoplifting -- Endnotes -- 22. Identifying Loss in the Retail Restaurant Industry -- Introduction -- Tracking Established Comparable Sales -- Tracking Cost of Goods Sold/Sales Ratio and Food Costs -- Creating Yield/Usage Programs -- Tracking Voids and "No Sale" Numbers -- Tracking Sales Based on Specific Employee Shifts -- Dangers of Being a Hands-Off Manager -- 23. Convenience Store Theft and Fraud -- Introduction -- Addressing Convenience Store Employee Theft -- Preventing Convenience Store Shoplifting -- Understanding and Preventing Convenience Store Vendor Fraud -- Maintaining an Audit Presence in the Convenience Store Operation -- Protecting Customers from Credit/Debit Card Skimming -- Endnote -- 24. Creating and Delivering Effective Loss Prevention Training -- 25. Creating the Ideal Loss Prevention Team -- 26. Brandjacking -- SECTION IV EXTERNAL FRAUD/THEFT -- 27. Organized Retail Crime/Theft -- 28. Cargo Theft -- 29. Financial Institution Fraud -- Introduction -- Understanding Identity Theft (Individual and Business) as It Relates to Financial Institution Fraud -- Business Takeover Fraud -- New Account Fraud -- Online Financial Institution Fraud -- Business Takeover Fraud -- Endnotes -- 30. Medical Identity Theft -- 31. Vendor Fraud -- SECTION V CYBER SECURITY AND CYBER FRAUD -- 32. Understanding Cyber Security and Cyber Fraud -- Introduction -- Future of the Threat -- Importance of Full Disclosure on Fraud Threats to the Employee Base -- Necessity of Learning the Aspects of Cyber Fraud for All Loss Prevention/Security/Law Enforcement Professionals -- Endnotes -- 33. Keeping Malware/Spyware Off Office Computers -- Introduction -- Is Scareware the First Threat? -- Understanding Phishing, Spoofing, Smishing, and Vishing -- Phishing -- Spoofing -- Smishing -- Vishing -- Spear Phishing -- Whaling -- Raising Awareness of Unsolicited E-Mails and Texts -- If It Sounds Too Good to Be True, IT IS -- Mobile App Fraud -- 34. Technology-Based Fraud -- Introduction -- Unauthorized Access to Company E-Mail Databases -- Need to Protect Vendor History Transactions and Vendor Identities (Payment Redirect Fraud) -- Hijacking Legitimate Websites -- Endnotes -- 35. Understanding and Preventing Data Breaches -- Introduction -- Outside Hackers versus Internal Ignorance (Both a Threat to Internal Company Information and Data) -- Younger Technology Users and Impatience as a Catalyst for Fraud -- Millennials Quitting over Not Being Able to Access Social Media While at Work -- Social Media Website Hijacking -- How Is the Internal Business (Customer Information) Accessed? -- Separation of Business Computers for Personal and Work-Related Activities -- Educating Employees on Computer-Related Fraud (Deliver as Concerned about Individual Victimization) -- Avoid Using a Personal Cell Phone to Check Company E-Mail -- Warn against Placing Company Information on Personal Computers and Cell Phones -- Remove the Hyperlink -- Do Not Remember Me -- How Can This Remote Computer Affect the National Office? -- Always Remember to Log Out --