Blog 5 - Lecture 12 Interviewing and Reporting fraud

If i was to put myself into the shoes of a criminal being interviewed, I think i would want as much information as possible to be able to make up better answers and also prefer the interview to not be recorded in case i said something i didn’t mean to, therefore it is clear that this statement was made without thinking of the benefits it would have on the interviewee.

The one point i do agree with is that the interview should follow a natural path and pre-determined questions need to be made and still allowing for some flexibility, otherwise there is the risk of not asking enough or receiving enough information from the interviewee. I think recording the interview is crucial as it allows for re-evaluation of the answers and the voice pitches etc. And as for how much detail is provided, that should be minimal to none to ensure that any cracks in an answer is uncovered.

When referring to Buchanan-Cook’s article, it is made apparent there are guidelines to a successful interview, which I believe to be the most important step in an interview of a fraud case (Buchanan-Cook, 2008). Interviewing requires important skills and abilities, most come with experience although some can be gained through research and understanding the importance of information. Documenting every step of the investigation and compiling your report is also an important part of the process. When referring back to the points made by the keynote speaker it is obvious how wrong those techniques are in conducting an interview for a fraud case.

-          Buchanan-Cook, D. 17 March 2008, http://www.journalonline.co.uk/Magazine/53-3/1005067.aspx, Question of Technique

Blog 4 - Lecture 11 Identifying and preventing fraudsters

I believe awareness and education is the key to defeating fraud within today’s organisations. If business owners are better educated on how and why  fraud occurs then it will encourage them to seek out strategies to ensure their business isn’t open to it happening to them. In my experience, i have seen people commit fraudulent activity and i have seen the opportunities for people to commit fraud in the workplace. It can be as simple as authentication and passwords.

According to Grippo, it is apparent that many organisations rely on their auditors to detect fraud, although it is actually the organisations responsibility to detect it and auditors are only there to keep an eye out for fraudulent activity.

A survey by the Association of Certified Fraud Examiners traced many frauds to a lack of good internal controls. The same survey noted common behaviors of employees who perpetrate fraud. One of the best ways to uncover fraud is to be alert for these red flags. Better than uncovering fraud is to keep it from happening in the first place. You can prevent fraud in your organizations in three key ways: 1. Maintain a positive, open, ethical culture. 2. Evaluate & minimize risk. 3. Create an oversight process. (Grippo, 2012)

Fraud costs the Australian economy at least $8.5 billion per year, therefore it is extremely important for organisations to understand how to prevent fraud. According to the KPMG 2010 Fraud Survey  Key finidings, the value per fraud and the cost of fraud is increasing, this means it is only going to get worse so knowing how to prevent it using education and awareness is a must.

-          Grippo, F. 2012, How to Prevent, Deter, and Uncover Fraud, page 22-24, vol. 30, issue 1