Lessons can be learned from major fraud cases. Whether the victim is a company, public agency, nonprofit, foundation, or charity, there is a high likelihood that many of these frauds could have been prevented or detected sooner if early Red Flag warning signs had been identified and acted upon. Fraud Prevention and Detection: Warning Signs and the Red Flag System will enable officers and directors, internal and external stakeholders, as well as outside analysts to protect themselves and their organizations against fraud by effectively detecting, analyzing, and acting on early Red Flag warning signs. Based on an empirically tested strategy, the Red Flag System reflects the authors’ more than 100 years combined experience in the investigation of fraud in high-profile, global cases in North America, Africa, Europe, and the Far East.
Readers of this book will:
Fraud can lead to significant financial loss as well as bad press and publicity with significant reputational impact for officers, directors, corporations, and their stakeholders. This book’s no-nonsense approach empowers those charged with protecting organizations to stop these frauds before the organization’s livelihood is jeopardized or to mitigate damage when fraud has occurred.
"Fraud mitigation, timely detection, and thorough investigation are crucial elements for asset and brand protection. This book seeks to provide a foundation to recognize fraud during its incipient stages and identify actions to stop it. The authors have collectively leveraged their extensive international investigative experience into an exceptional resource…Any corporate leader or investigator should strongly consider adding this book to their library."
—ASIS Dynamics, March/April 2015
An Introduction to the Red Flag System
Fraud 101: A Primer
The Dynamics and Root Causes of Fraud
The Red Flag System
Financial Statement Fraud
Red Flags for Financial Statement Fraud
Procurement Fraud Methods and Red Flags
Bribery and Corruption
Fraud and Money Laundering
High-Risk Corporate Activities and Market Manipulation
Fraud and the Absence of Good Governance
The Board of Directors and Its Responsibility to Safeguard
Enterprise Risk Management, Fraud Risk Management, and Compliance Risk Management
The Board of Directors—First Line of Defense against Fraud and Corruption
Screening, Scrutinizing, and Investigating Red Flags
Appendix A: Summary of Red Flags
Appendix B: Glossary