Masterclass series on Fraud Prevention and Data Security

Our forthcoming online series of webinars will be delivered by some of the top legal and security experts in the UK and participants will be eligible for CPD. During the series you will have access to pre-recorded sessions, reference material, online assessments and polls as well as live question and answer sessions with our team of experts. All sessions will be recorded and sent to you for future reference.

 

1.    How and why is fraud committed?

• What is fraud? 
• How motive, opportunity and benefit impact fraud detection
• Cost of fraud
• Traits of the fraudster
• How frauds are committed and concealed
• Indicators of fraud – red flags
• What are the vulnerable points within specific industry sectors that represent opportunities for fraud?

2.    Looming threats in fraud related crime

Fraud continues to increase and shows no signs of slowing down.  According to KPMG, over £1bn of fraud came to court in 2007; this is the highest since 1995 . There are now fears that the credit crunch will lead to personal and corporate pressures fuelling fraudulent behaviour, making 2008 even worse.

As well as the threats from internal employee fraud, organisations face external threats from fraudulent customers eg: mortgage application fraud; identity theft and credit card fraud.

Our presenters will explore the threats that face specific industry sectors and offer suggestions on how you can protect your organisation from the damages of fraud.

3.    Techniques for Fraud Prevention

Employee vetting

This is the first line of defence in the identification of those susceptible to fraud, preventing infiltration and the re-employment of offenders.  By adopting a risk-based approach, the relevant steps that may be taken include:

• completion of a corporate application form by all prospective employees;
• identification checks;
• electoral register checks;
• reference reviews;
• qualification checks;
• Credit Reference Agency checks;
• Criminal Records Bureau checks for high-risk roles;
• Occupational health screening;
• membership of professional bodies checks (if applicable);
• Companies House checks on employers and directors.

• whistleblowing;
• staff fraud prevention;
• Internet policy and computer use;
• disciplinary procedures;
• fraud reporting.

 

(a)    Employee Monitoring, Management and Risk Assessment

The Information Commissioner has issued a code on data protection and monitoring at work which provides organisations with guidance to ensure compliance with the Data Protection Act. Nevertheless, many organisations continue to pay lip service to the DPA. What can they do to ensure that compliance with the DPA is part of a wider culture of vigilance and respect for information security? What can you learn from other organisations that represent best practice in implementing security policies?

RIPA
The Regulation of Investigatory Powers Act (RIPA) legislates for using methods of surveillance and information gathering to help the prevention of crime.

RIPA makes provision for:

• the interception of communications;
• the acquisition and disclosure of data relating to communications;
• the carrying out of surveillance;
• the use of covert human intelligence sources;
• access to electronic data protected by encryption or passwords;
• the appointment of Commissioners and the establishment of a tribunal with jurisdiction to oversee these issues.

In this part of the programme, our experts will issue guidelines on how organisations can operate within the guidelines of the Act and we will explain how the Act affects fraud investigations.


(b)    Third Party Due Diligence

This will cover contractual arrangements with suppliers and contractors.

(c)    Communications and Staff Training

Participants will be provided with material that can be used for internal training purposes, especially induction.

Topics will include: Data Protection Compliance; Introduction to Information Security; Managing Information Security and Encryption techniques.

4.    Audit techniques to uncover fraud

• How to develop fraud audit procedures
• Linking audit procedures to fraud red flags
• Building the fraud audit matrix so that potential areas of business risk are protected against fraud
• Using the fraud scheme approach to uncover fraud
• How to search for fraud
• Ways fraud is discovered

5.    Investigation

This material will help you answer a number of important questions, such as:

• At what stage should the suspect be notified that an investigation is taking place?
• Should the suspect be suspended during the investigation?
• What are the legal issues associated with the collection of evidence?
• At what stage should the criminal authorities be notified?
• At what stage should the organisation’s insurance provider(s) be informed that it may have been the victim of fraud?
• What are the consequences of failing to disclose fraud to insurance providers and criminal authorities? 
• Appointing the fraud investigation team
• Investigation processes
• Procedures for searching relevant offices to ensure all relevant documentation is secured, including the use of computer forensic experts to obtain information from computers/networks and information that may have been deleted. 
• Examination of documentary evidence:
  1. To locate the documents required to prove the case
  2. All documents are admissible in legal proceedings, although judges have a discretion to exclude evidence
  3. The weight of the evidence – how reliable is it? Simply printing off documents may not be enough – hence the need for computer forensic experts.
  4. Other experts may be required to assist with the review of the evidence eg forensic accountants
• Importance of electronic documents:
  1. This can be a highly complex area that requires skill in the collection and preservation of documentary evidence. Organisations often destroy this crucial evidence inadvertently as they lack the specialist forensic skills that are required for fraud investigations.
  2. Webinars will include latest research from computer forensics experts at Napier University who are developing new techniques for fraud related investigations. The research has been commissioned by the Financial Services Authority and the Scottish Institute for Policing Research.
  3. The series will help you implement policies based on best practice for storing electronic data.
• Interviewing of all relevant witnesses to the alleged fraud in the following order:
  1. Third party neutral witnesses. Always begin with the least likely to be involved.
  2. Corroborative witnesses - Interviews from witnesses to corroborate facts should be conducted after the neutral third-party witnesses. Note that these witnesses may or may not be cooperative.
  3. Suspects – further steps may be taken to protect assets and documentation before these interviews take place.
• Conducting Fraud Interviews


Purpose of the interview
Interview skills and methodology
Physical setting considerations
‘Do’s’ and ‘don’ts’ of Interviews
How to evaluate allegations of fraud
Memory recall
Types of interviews
Conducting the fact-gathering interview
Conducting the confession interview
Components of a confession
Legal considerations in interviews


• Review of evidence to see if you have enough evidence to take pre-emptive steps to freeze assets/protect documents

6.   Steps to protect documents/assets  

  
Webinars will cover the correct legal procedures for this task. This is fairly detailed and will be accompanied by reference material.
 
7. Fraud and PR

How can organisations cope with the reputational damage if details of the fraud are leaked to the media? Webinars will cover damage limitation tips and will include a subject expert from a PR agency.

8. Case Studies

Webinars will be accompanied by case studies and scenarios that illustrate good and bad practice.