RSA/InfraGard Meeting 2017

Fascinating presentation at the InfraGard SF Bay Area meeting held at the RSA conference. It was an honor to meet Richard A. Clarke , Special Advisor to the President for Cyberspace, and National Coordinator for Security and Counter-terrorism, who spoke about the current Cyber-threat-map facing the USA.

Fraud Luncheon – Hear and Learn from a Panel of Experts February 9th 2017

Thanks to all the ACFE members who particiated in  today’s SF IIA’s Chapter meeting which was a great success. With well over 50+ attendees, relevant information on the topic of fraud was presented. A special thanks to the IIA’s guest speakers, Kristen Rivera of PWC and FBI Special Agent Lester Kwok who did a phenomenal job presenting their insights and experiences on fraud and corruption in the global landscape.

Attached to this post is a handout provided by Special Agent Kwok on tips and tricks detecting Business e-mail compromises.

Business E-mail Compromise by the FBI SF Division

ACFE Data Analytics for Fraud Detection

The ACFE seminar “Using Data Analytics to Detect Fraud” on Feb. 5-6 at the SF Omni hotel was a successful event. Jeremy Clopton, presented masterfully a mixed overview and detail on how to utilize data analytics in fraud into two packed days of teaching. Over sixty CFE’s from around the country attended the event. Special thanks to our Chapter volunteers Svetlana, Nadia and Melanie for their great support.

SF ACFE Chapter Meeting 1/24/17

Thanks to everyone who helped make yesterday’s SF ACFE Chapter meeting a great success. With well over 50+ attendees we started off the year with passion and boldness like never before. A special thanks to our guest speaker Maureen Downey, DWS, CWE from Chai Consulting who did a great job packing a day long training into an hour presentation on the impact of global wine fraud and counterfeiting. Thanks also to sponsors and host Golden Gate University and Chipotle.

Does the Fraud Triangle properly address Cyber-Fraud?

Years ago when I started my career in fraud investigation I was quite pleased with the quality of fraud resources available to anti-fraud professionals. As a cornerstone to help fraud professionals understand the how, why or when fraud occurs, the Fraud Triangle was developed by Dr. Donald Cressey. This has been a great tool to understand why generally good persons – cross the line – to do bad things. However, over the past few years I have seen a drastic change in the fraud landscape as it pertains to the rise in Cyber-Fraud. Now seems to be the right time to question whether the Fraud Triangle is still the best tool to properly address this shift in fraud.

Historically anti-fraud professionals have looked at fraud from the perspective that most cases of fraud were being done by organization “insiders”. Typically this fit well into the ACFE Fraud Tree major categories of; Asset Misappropriation, Financial Statement Fraud and Bribery & Corruption, where embezzlement, inflated revenues or kick-backs were occurring. We relied on the Fraud Triangle to explain the pressures, rationalization and opportunity that motivated and allowed the fraudster to perpetrate the act. In most instances the Fraud Triangle fits like a glove and is a very useful tool. It is flexible enough to fit into almost any type of organization at any level. It helps us to understand the emotional and psychological motives of fraudsters to identify not only gaps in a control framework, but also guides us to consider other aspects of the organization, such as its ethical culture.

However, with the dramatic rise of Cyber-Fraud over the past 18-24 months, organizations are finding themselves under attack not only from “insiders” but more and more likely from external fraudsters. Fraudsters who do not fit into the classic fraud triangle, due to the fact that they are not “trusted employees” or other traditional insiders who have veered into an ethical dilemma. From what we know, Cyber-Fraudsters can be located anywhere in the world that has an internet connection. They do not share the same language, culture or even legal systems that we do. For some it is simply a job. They are young and free and sometimes are just having fun. It is more about risk and reward than rationalization. Of course, there are also organized crime syndicates involved, or even a foreign government or two. However, none of these variations represent the traditional fraudster as described by the fraud triangle. What our profession now needs is to adapt to the changing fraud landscape. Who’s up for the challenge ?