Detecting Fraud in Organizations: Techniques, Tools, and Resources

Afterword

AS OF THE FINAL WRITING of this book, Superstorm Sandy hit the East Coast and caused severe damage. In addition to the unprecedented damage, the storm also brought the potential for massive fraud. Hopefully, people affected by Superstorm Sandy have learned from past frauds associated with Hurricane Katrina and other similar catastrophic events to safeguard themselves from potential fraudsters. Here are some fraud examples and indicators (motivations) that may be present during the aftermath of a natural disaster:

• People are desperate. This makes them vulnerable due to the immediate needs (for example, shelter, food, clothing) created by the natural disaster.
• The economy is already distressed (no jobs). High unemployment and a sluggish economy create a ripe environment for scams.
• People are very charitable. Avoid bogus charitable websites, and do not give cash gifts (use credit cards or checks instead). Watch out for phony or fictitious charities that have similar names to well-established and well-known charities. Make sure the funds you contribute are going directly to those affected.
• There is lots of value (money) available in the form of federal aid and insurance claims. Government agencies, such as FEMA, and insurance companies are subject to potential false claims.
• Contractor fraud can include overstated pricing by dishonest repairmen. Watch for contractors who take your money and then vanish without completing the work you hired them for. Make sure any contractor ...