The CFO'S Perspective

Financial Scam Checklist During COVID-19 (for business or working from home)

Your most Important Tip: If you receive an email asking you to wire money or send gift cards, assume it is a fraud – every time. CALL the sender to confirm, at a number you know is correct.

We are seeing, and hearing about, an increasing number of online scams and other negative internet-based activity related to COVID-19 and the mass exodus from company offices to home offices.  

As thousands of information workers recreate office processes and routines to work in an online-only world, the scammers, spammers, information manipulators, and meeting hijackers have been busy as well.

Topics: Fraud Security Risk Management COVID-19

The CEO Email Fraud

Carl in accounting receives an urgent email from Erica, the company CEO. 

The unusual email captures Carl’s attention, so he verifies that it is from Erica’s email and notes how the tone and writing style is consistent with her other email messages.  The CEO is requesting a wire be sent immediately to the bank displayed in the email.  Since Erica is out of town, Carl complies and sends the wire as requested. 

Topics: CEO Security Risk Management CFO Responsibilities Controller Responsibilities

Attention Owners, CFOs & Controllers: Is Your Trusted Bookkeeper Stealing?

There are professions that most people would consider trustworthy. Doctors & nurses, firefighters, and teachers all come to mind.  How about accountants?  Do you trust your bookkeeper?  The reasonable answer here is: Yes!  Trust is often built over time, through relationships and evidenced by past and ongoing performance.  The reality is, if you didn’t trust your employees, they probably wouldn’t still be working for you.

Topics: Leadership Fraud Security Portland

Employee Fraud Factor #3: Rationalization

This is Part 3 of a series on the causes of a perfect employee fraud scenario.  Read “Employee Fraud Factor #1: Pressure” here, and “Employee Fraud Factor #2: Opportunity” Part 2 here.

In case you missed Part 1 & 2, there was once a really smart guy, Donald Cressey, who created a theory that said: “If three factors were met, any ordinary, trusted person could bring themselves to commit fraud.”

Topics: Leadership Fraud Security Portland

Employee Fraud Factor #2: Opportunity

This is part 2 of a series on the causes of a perfect fraud scenario.  Read “Employee Fraud Factor #1: Pressure” here.

In case you missed Part 1, there was once a really smart guy, Donald Cressey, who created a theory that said: “If three factors were met, any ordinary, trusted person could bring themselves to commit fraud.”

In other words, given the right situation (or perhaps wrong situation), anybody could commit fraud.  Not just criminals, not simply “unethical” people, and certainly not just somebody ELSE’s accounting staff.

The three factors include:

>  Pressure
>  Opportunity
>  Rationalization

In Part 1 we talked about the first factor, Pressure, and how a person with an apparently SECRET financial problem might feel no other option than to steal company money.  They are on the prowl for just the right opportunity!

Topics: Leadership Fraud Security Portland