You realize you are a victim of fraud XI

OK - you've done the leg work, made the hard decisions, stopped the fraud and taken steps to ensure that it never happens again.  What is left?

     Well, as we leave this subject, I will state that it can't hurt to at least become familiar with some of the well-known techniques of fraudsters.  Blogs such as this one (ahem) are a good place to start with learning about fraud and fraud related issues.  But, every so often, it can't hurt to do a scan of the internet to find out about what is occurring in the world and how fraud and confidence scams change and evolve.  In some ways, fraud never really changes - it is the use of deception to take money or possessions from other people and, as we have seen, this has been going on since the dawn of time.  However, the method and means of fraud is always changing.  Fraudsters are incredibly inventive in coming up with new schemes.

     Take some time to read up on what is going on in this murky world.  I find this reading to be absolutely fascinating.  It doesn't take much of an effort, it is often times an easy read and also enjoyable.

    We will move to a new topic tomorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

You realize you are a victim of fraud X

OK - so we discussed what happens when you are a victim of active fraud and the prevention measures that need to be taken.  What happens if you are a victim of passive fraud?

     There is really no way to sugar coat this - the best course of action is to retain a fraud professional for your business to install security and safety procedures to reduce the chances of it ever occurring again.  Unfortunately, unlike with active fraud, where you have to take some affirmative step to get involved with the fraud, with passive fraud, you were the victim because someone found an opening and exploited it.

     The best course of action is to retain a professional to "seal" these gaps.  There is just too much information to speak about this that cannot fit into this blog (although I may try later).  There are certain things for which you will need a fraud professional and this is one of them.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

You realize you are a victim of fraud IX

OK - you have found that you are a victim of fraud and you have also taken the corrective measures.  In medical terms, you have found the wound, staunched the flow of blood and closed the wound.  What's next?

     The next step is to ensure that it will not happen again.  If you have been the victim of fraud, you are somewhat more experienced and (hopefully) somewhat wiser.  You know that fraud is not only something that happens to "other people" it is something that can happen to you and has happened to you.  The real trick, therefore, is to prevent it from occurring again.

     Let's start off this discussion assuming you have been the victim of active fraud.  You sent money to a 419 scam in Nigeria (or any other country).  Once again, to have been a victim of active fraud you somehow must  have participated in this action (in this case, by sending the money).  It's easy to say "well, the answer is simple, I just won't do it again."

     Take steps to ensure that it does not happen again.  This is more than just saying "well, I'm never going to accept an e-mail invitation to send money abroad (or in the U.S.) again."  Talk to a financial advisor.  Talk to someone who can tell you if a program or scheme that is offered to you is legit or something that is indeed "too good to be true."  Get some kind of backup system in place so that you can get a second opinion BEFORE any money is sent or any contracts are signed.

     This step alone is enough to deter most fraud.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

You realize you are a victim of fraud VIII

OK - let's take the position that whether you have been the victim of a passive fraud or an active fraud, you took your case the District Attorneys' office (or the Justice Department depending on the size of the fraud) and it was accepted for prosecution (or you retained a legal or fraud specialist to help you with this and it was accepted for prosecution).  Now what?

     Two things:

1.  First, cooperate with the DA or the Justice Department.  You brought the case to them, they accepted it and they will need your help to fully prosecute the matter.  Just because you brought a case to the DA or to the Justice Department, it does not mean that it ends there.  The case may end up going to trial and, if you were the victim of fraud, it is almost certain that you will be a witness in the case, if not the star witness.  The DA or the Justice Department will need your help to keep the case going to its conclusion.

2.  Second, remember that if a case is being prosecuted, it is not wise to go around talking about it.  Until the case is resolved, it is best to keep quiet about the matter, unless of course you are talking to the DA or Justice or to your own legal counsel.

On a personal note, I will not be posting this Thursday (11/24) because of the holiday.  I wish everyone a happy Thanksgiving.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

You realize you are a victim of fraud VII

OK - we discussed yesterday what to do when you are a victim of passive fraud and the (usual) necessity of speaking to a lawyer because of the legal overtones of dismissing the employee who was causing the fraud (causing employment issues) and/or going to the District Attorneys' office to file a criminal complaint (bringing criminal issues into the mix).

     The issue for today is: if you are the victim of active fraud, do you still need to take the same steps and precautions?

     Remember, with active fraud, normally the only victim is yourself.  You were the one sending the money so you were the one who experienced the loss.  In this case, there are (usually) no other parties).

     It is still good advice, however, to speak with an attorney before filing any documents or complaints with the D.A.  In this case, "attorney" means a competent criminal defense attorney.  There are three main reasons for doing this:

1.  First, a competent professional should review your case
2.  Second, there is always the possibility that, inadvertantly, you may have committed a crime.  Money that was sent overseas (which occurs in some frauds) may have been sent, even without your consent, to groups that the United States Department of State classifies as terrorist groups.  Also, once again without your consent or knowledge, money transfers could have been in violation of the Foreign Corrupt Practices Act.  It is a good idea, therefore, to get an informed opinion on this.
3.  Finally, it is important to have an attorney see if this is something that a District Attorneys office can handle or if it needs to go the Federal government, or anywhere at all.

   When you have been the victim of fraud, it is important to report the fraud and how much you lost.  But, once again, getting assistance from an attorney can be important before proceeding forward.

You realize you are a victim of fraud VI

OK - we've had the humbling experience of computing our losses and determining just how big of a hit we have taken.  Now, the next step is to determine the steps that are needed to prevent this from happening in the future.

     Today, however, we are going to discuss what happens if you have been the victim of a passive fraud, i.e. you work for a company and discovered that one of your employees was stealing from the company.  This involves an extra step that may not occur with active fraud (i.e. where you were sending money to someone, such as the infamous Nigerian 419 scams).

     At this point, your company needs to determine if criminal charges need to be filed.  And, at this point, this blog will have to "take the 5th" and simply say the best course of action is to consult with an attorney.  My blog's purpose is to educate as many people about fraud and how to avoid being a victim of fraud, but there are some aspects of fraud related events that are just too specific and complex to discuss on a forum such as this.

   So - here goes.  The general advice for situations when you have discovered that your company has been the victim of fraud because of an employee is to speak with an attorney as soon as reasonably possible.  Anytime an employee will be terminated involves potential litigation.  An employment attorney may therefore be needed.  Also, if criminal charges are to be filed, it is often not as easy as "filling out a form."  There are other legal implications which must be considered and a competent criminal defense attorney can be of assistance with this area.

   So - in the case of passive fraud involving a company, it is best to consult with an attorney after the steps described in previous blog postings have been done.  In situations such as the ones described, competent legal representation will be needed.

   More, of course, tomorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

You realize you are a victim of fraud V

OK - you've done the financial calculations and have tallied your losses.  It is not fun, not pleasant and certainly a humbling experience.  But, it is necessary.

    After the calculations have been done, the next step is to defined just how serious are the losses.  There is a vast difference between losing a few bucks on a scam that will prevent you from having dinner in your favorite restaurant for the next month or a major financial blow that will seriously redefine your concept of "retirement."  Once again, this is a critical, yet humbling, step.  But, it is also important.  You need to know just how damaging has been this exposure.

     Once again, at this point you may need to consult a financial advisor.  Before we can move on, however, you need to know just how much exposure has occurred.

  Next step tommorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

You realize you are a victim of fraud IV

OK - if you are the victim of an active fraud, stop immediately.  If you are the victim of a  passive fraud, go tell someone.  What next?

     The next step is to calculate your losses.  Find out how much money you have lost.

    For many people, this is the second-hardest step (the hardest step will be discussed in a future post).  It is painful to realize and discover how much money you have lost to a fraud scheme, but it is incredibly important.  You need to have a fixed number which details your losses so you can detail not only what you have lost, but begin to look at recovery.

     If you are the victim of an active fraud, where you actually had to send money, then detailing your losses should not be that difficult.  However, you may want a CPA or other financial professional to review it with you.  If you are the victim of a passive fraud, then you should most definitely get a CPA or a financial professional since you may have to present this to the police or to someone within your organization and you will need expert backup.

     As state, it is not easy to sit down and put a dollar-and-cents figure on how much you have lost because of fraud.  To move ahead, however, it is essential.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

You realize you are a victim of fraud III

Yesterday we discussed what to do if you discover that you are being defrauded and it is an active fraud.  Once again, the Nigerian 419 scam is the best example of this.  And, the advice is simple - the first step is to stop sending money.

     What if you are the victim of a more passive fraud, however?  What happens if, for example, you are in the accounting department of a company and you realize that fraud is occurring?  For example, while going over the receipts of an employee who is asking for a refund or a reimbursement.  What happens then?

     It is unwise to simply confront someone in this situation because, as the person doing the confrontation, you may be accused of libel, slander and other torts if your accusations turn out to be baseless.  So, if you find that you (or your company) are the victim of a passive fraud, the best first step is to contact the next person in your department (or the company) who is responsible for oversight and have them check your work.  Or, if you are in a small company, the person who is above your level of responsibility.  Or, if you are self-employed and you think a vendor is committing fraud, ask your accountant.

   You get the idea.  Get an opinion first from someone other than yourself.  Don't go directly accusing people.

    Unlike active frauds, where you actually have to take some action to be a victim of the fraud (i.e. send money), passive fraud means that someone is committing fraud without you having to take any action (other than perform a reimbursement or something of that nature).  You are not being asked to send money to a person or organization, quite the opposite - someone is taking money from you.

This then is a good first step if you are the victim of passive fraud.

More tomorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

You realize you are a victim of fraud II

OK - you have suddenly realized that you are a victim of fraud.  What's next?

     The first thing to do in the situation described (the case of Nigerian 419 fraud) is to STOP DOING IT!  Seriously.  If a fraudster is tricking you into sending money to him, then stop sending money.  The first step is always to cut your losses.

     Note, however, that the advice to stop doing it is in the case of ACTIVE fraud.  Active fraud is where you are actually taking some affirmative action or step (in this case actually sending or transferring money).  In the case of an ACTIVE fraud, such as the Nigerian 419 fraud, stopping the situation means to stop sending money.

 In the case of a PASSIVE fraud, such as discovering that an employee of a company is defrauding the company, then it becomes a little more complicated.  The first step might involve speaking with an attorney or other counsel first.

We will talk more about this tomorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

You realize you are a victim of fraud I

Time to move on to another thread.

     After being in communication with a mysteriously named Nigerian prince or former ruler or medical doctor or bank account manager in Lagos by email for the past few months, you suddenly start getting the feeling that all is not right.  You are supposed to get a deposit in your bank account of $20 million dollars, but there have been delays.  Your contact in Lagos is telling you that they need an additional $5000 for the transfer.  This is after the previous requests for $5000 and another for $7000 that you dutifully paid.

     Your contact in Lagos keeps telling you everything is fine, everything is working but there are just a few unexpected glitches that keep popping up.  A local police inspector needs to get some money to look the other way.  The bank administrator died and someone needs to be placed in a temporary position to cover so that the new administrator won't catch on.  Now there is a problem with the transfer office.  Just one more payment and it will be worked out.

    No big deal, right?  You have to spend money to make money.  You've already sunk $12,000 into the project, what is another $5000?  The payoff will be enormous.  Keep the faith, all will be fine.

     Or will it?

    Suddenly it hits you - your the victim of a scam.

    Now what?

http://www.tauskvega.com

-------------->>>>>>>>>>>>>>>gene tausk