First Steps in the Fraud Investigation The first steps in a fraud investigation are crucial to setting the tone and can set the stage for a successful, or lack thereof, investigation. This article details the first steps a company should take when initiating a fraud investigation, what experts will be necessary to uncover illicit behavior, and what parties need to be notified. Introduction Fraud is a pervas ...

Part Two in a Series Addressing Advances in Forensic Accounting and Financial Forensics The author of this series of articles is co-founder of Valid8 Financial Forensics Software, a Seattle, WA and Boulder, CO-based professional service provider. This second article, and those in the forthcoming series, set forth techniques used to investigate financial fraud allegations and the reliance and value of artifi ...

Currency Investment Scams Step aside e-mail compromises and romance scams. Make way for the crypto investment scam, the newest in an ever-changing sea of schemes and scams available on the World Wide Web to minimize your life savings in as little as a few weeks. This article is a refresher for traditional indicators beyond the “too good to be true” mantra and will detail the slight modifications occurring w ...

A Primer for Business Valuation, Forensic, and Litigation Support Professionals This is the first article in a series related to the cryptocurrency valuation and litigation. This is an emerging area of practice. In this first article, the author explains what is a blockchain and the purposes blockchains serve. Cryptocurrency litigation in the past decade has appeared in various dispute types: Matrimonial di ...

The Layered Approach There is a maxim in forensic accounting that investigations take twice as long as anticipated, yet the final report appears to have taken half the time. This article provides an overview of the forensic methodology to balance client expectations with the appropriate level of service. Each progressive layer allows for the milestones reached to be evaluated before expanding the scope. Thi ...

Part I in a Series Addressing Advances in Forensic Accounting and Financial Forensics The author of this series of articles is co-founder of Valid8 Financial Forensics Software, a Seattle, WA and Boulder, CO-based professional service provider. These articles set forth techniques used to investigate financial fraud allegations and focus on the flow of funds. As 2023 comes into clearer view, it is evident th ...

Foundations for Prevention and Mitigation This article focuses on the professional expertise, processes, and technologies that are needed to mitigate the ever-increasing risk of cyber-attacks and potential business interruptions on companies, organizations, and individuals. The modern security ecosystem is diverse and ever-changing, a place where cyber risk is top of mind for leaders at all levels, and thre ...

Taking Another Look at Perpetrators and Their Schemes—Can a Testifying Expert Witness Rely on the Financial Statements and/or Other Financial Reports Provided? For more than a decade, the Association of Certified Fraud Examiners (ACFE) has published its report on global occupational fraud. The term occupational fraud refers to frauds that are committed by individuals against the organizations that employ th ...

Strategies for Resolving Litigation Disputes The cryptocurrency market is down approximately 57 percent for the year as of the time of this writing. For many, this news may bring a feeling of JOMO (Joy of Missing Out). For practitioners involved with crypto-litigation, however, it just further complicates a complex subject matter. This article explores the considerations and strategies to help resolve these ...

With Examples From Asset Misappropriation to Financial Statement Fraud (Part II of II) This two-part article (Read Part I here) focuses on the two significant, but different, roles forensic accountants play in quantifying employee losses and how—in the normal course of the analysis—they may find instances of fraud that require further investigation. The authors first provide detailed guidance for forensic a ...

With Examples From Asset Misappropriation to Financial Statement Fraud (Part I of II) This two-part article focuses on the two significant, but different, roles forensic accountants play in quantifying employee losses and how—in the normal course of the analysis—they may find instances of fraud that require further investigation. The authors first provide detailed guidance for forensic accountants in how to ...

Behavioral Underpinnings of Greed In this article, the authors discuss the unprecedented growth of cryptocurrency and the accompanying risks and fraud. They ask, Why does a person choose the characteristics of cryptocurrency to be not only a secure medium of exchange, but also one with upward price potential? The recent price drop in the spring of 2022 shows the magnitude of loss of value Bitcoin has suffer ...

in Detecting Fraud in Business Interruption Claims (Part II of II) Business interruption claims are generally closely scrutinized by insurance carriers and can range from thousands of dollars, to claims exceeding $100 million. Insurance carriers often seek the assistance of either internal or external forensic accountants to analyze such claims. During their analysis, forensic accountants often detect the p ...

in Detecting Fraud in Business Interruption Claims (Part I of II) Business interruption claims are generally closely scrutinized by insurance carriers and can range from thousands of dollars to claims exceeding $100 million. Insurance carriers often seek the assistance of either internal or external forensic accountants to analyze such claims. During their analysis, forensic accountants often detect the pos ...

A Guide for Forensic Analysts As cryptocurrencies become more mainstream, it is vital for forensic analysts to understand and analyze digital currency data. Forensic analysts are increasingly being brought in to trace and help recover crypto assets in criminal matters, such as money laundering and other fraud prosecutions. There is also a noticeable increase in the use of forensic analysts in civil litigati ...

Signs of Ethical Deterioration The 21st century has brought not only the worst pandemic in over 100 years, but also an alarming deterioration in ethical culture. We see examples of this in the types of fraud being perpetrated, as well as in the behavior of elected officials, athletes, business owners, and wealthy parents of students. Where is this trend headed, and can it be reversed? In this article, the a ...

Following a Ransomware Attack As businesses continue to rely on computers and digital storage of important data, cyberattacks are a growing potential threat to these organizations—especially now, as businesses have transitioned their workforces to work remotely. There are many types of cyber threats, and the pandemic has driven a surge in ransomware attacks. Ransomware is malware specifically designed to di ...

Fraud Issues in the Hospitality Industry Post-COVID-19 Pandemic The hospitality industry is already experiencing an increase in fraud, and everyone associated with the business—including operators, owners, managers, employees, and even guests—is at risk of being affected. In this article, the author identifies areas of fraud and provides recommendations to mitigate risk.  As a self-proclaimed foodie, I am e ...

The Dark Web Criminals Both the Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) have issued recent advisories concerning ransomware payments. This article provides an overview of those advisories. Both the Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) have ...

The Evolution of Digital Forensics and Growth of the Industry The rapid growth of technology has resulted in the computer age, which has given rise to cybercrimes. Savvy criminals today use devices such as tablets, computers, smartphones, and cloud storage in the planning and commission of cybercrimes, whether to wreak havoc in the system of an organization or in the commission of a crime of self-enrichment ...