1. What You Dont Know About FraudCan Hurt You (ID 27644) Nauri AhmedNorthern Virginia CC Gwen YoungThomas Nelson CC Paul Weitzel Eastern Shore CCApril 4, 2013 (3:15-4:15pm)-Buck Mountain Roanoke, Virginia1

2. Overview of PresentationConsumer Fraud SchemesOccupational Fraud & Abuse SchemesFraud StoriesFraud Awareness at Your CollegeAnti-Fraud Resources2 3. Consumer Fraud Schemes Nauri AhmedOverviewCommon fraud scams Telemarketing fraud Nigerian letters Identity theft Advance fee schemes Health care/insurance fraud Redemption fraudInvestment-related scamsInternet scamsSenior Citizen Target Fraud3 4. Consumer Fraud Schemes Nauri AhmedTelemarketing FraudNigerian LettersIdentity TheftAdvance Fee SchemesHealth Care/Insurance FraudRedemption Fraud4 5. Consumer Fraud SchemesNauri AhmedInvestment-related scamsInternet ScamsSenior Citizen Target Fraud 5 6. Consumer Fraud Schemes Nauri AhmedSome Tips to Avoid Identity TheftNever disclose your financial or personal information in response toan unsolicited e-mail regardless of who sent itNever click on a link embedded in an unsolicited e-mail, regardlessof who sent itUpdate anti-virus software weeklyCheck your credit report once a yearInstall a locked mailbox at your residence to reduce mail theft or usea post office box. Keep a list or photocopy of all of your credit cards, accountnumbers, expiration dates, and the telephone numbers of thecustomer service 6 7. Occupational Fraud & Abuse Schemes Gwen YoungOverviewACFE definition of occupational fraud &abuse The use of ones occupation for personalenrichment through the deliberate misuseor misapplication of the employingorganizations resources or assets.7 8. Occupational Fraud & Abuse SchemesGwen Young ACFE recognizes 3 basic categories of occupational fraud & abuse: Asset misappropriations Corruption Fraudulent statements 8 9. Occupational Fraud & Abuse SchemesGwen YoungTips to Protect an Organization fromOccupational Fraud SchemesPreventionDetection and investigationProsecution 9 10. Occupational Fraud & Abuse SchemesGwen YoungWhy teach about occupational fraud &abuse?Serious problem for organizationsA knowledgeable employee is a morevaluable employeeA knowledgeable individual is a protectedindividual10 11. Occupational Fraud & Abuse Schemes Gwen YoungACC 240-Fraud ExaminationMajor Topics to be Included:Overview and introduction to fraud examinationAsset misappropriation schemes the most common type Thefts of cash Thefts of inventory and other assetsCorruption schemes often involve vendorsFraudulent statements management fraudCourse useful for: business, accounting, administrationof justice, psychology, and other students11 12. Occupational Fraud SchemesGwen YoungACC 240-Fraud Examination (3 credits)Business and accounting faculty can offerthis course at your campus in a face-to-face, blended, or online formatThis course will also be offered onlinethrough the Shared Services DistanceLearning (SSDL) program with NorthernVirginia Community College beginningsummer 201312 13. Occupational Fraud & Abuse SchemesACC 240-Fraud ExaminationCourse Description:principles and methodology of frauddetection and deterrence.How fraud and occupational abuses occurmethods to identify the fraud riskPrevention, detection, and investigationapproaches 13 14. Fraud StoriesPaul WeitzelK-Mart Closure -ExmoreClosest Big Box competitor44 miles North in Pocomoke City, Maryland or55 miles and a $17 round trip toll South to NorfolkExmore K-Mart Closed as under performing storeWhy? The Story of Two StoresCost to the communityJobsTax Revenue to Town of ExmoreTax Revenue/Revenue to Northampton CountySliding through in Food Lion 14 15. Fraud StoriesPaul WeitzelCounty, Town and GownCounty Department of Social ServicesChristmas Toy Fund Cash DonationsOnley Volunteer Fire Department --$400,000 missingOnancock Town Clerk Unknown amountEastern Shores Own Arts CenterEastern Shore VA Tech Family and Consumer ScienceEastern Shore MD Teachers Union --$443,000 missing 15 16. Fraud Stories Paul WeitzelExample in a Professional PracticePhysicians Office Partnershiptwo physicians and a single officeone physician did not rely on income from partnership family wealth Receptionist/Bookkeeper Followed best practices at the timeReceptionist/Bookkeeper paid well for the positionemployee of long standing and family friend of one of the partnerstook maximum allowable vacations and in large time unitspractice income benchmarked to averages in area Family of one of the physiciansCommented that receptionist wand husband were taking annual and multiple vacations to exotic locals that physician couldnt affordReceptionist and husband had new cars every yearPhysician was working excessively long hours with full load Detailed audit, embezzlement found and the Practice closed16 17. Fraud Awareness at Your College Paul WeitzelOffer periodic lectures to the college communityEstablish a student chapter of the Association ofCertified Fraud Examiners Business and accounting faculty can provide guidance and become certified fraud examiners (CFEs) Students and faculty can conduct anti-fraud education programs in the community Resources can be provided by the ACFE Worlds largest anti-fraud organization and premierprovider of anti-fraud training and education. www.acfe.com17 18. 18 19. Anti-Fraud ResourcesAssociation of Certified Fraud Examiners(www.acfe.com) Virginia Attorney General (www.oag.state.va.us)VCCS Forensic Accounting OrganizationEmail Nauri Ahmed to joinNational White Collar Crime Center(www.nw3c.org)FTC (www.ftc.gov)FBI (www.fbi.gov) 19 20. HOW TO REACH USNauri D. Ahmed, CPA, CFE Assistant Professor of Accounting/Business Northern Virginia Community College-Woodbridge Campus nahmed@nvcc.edu 703.878.5650Paul Weitzel Associate Professor of Accounting Eastern Shore Community College pweitzel@es.vccs.edu 757.789.1765Gwen Young, CPE, CFE Associate Professor of Accounting/Business Thomas Nelson Community College youngg@tncc.edu 757.258.6599 20