| Q: |
What percentage of fraud is detected by tips from employees? |
| A: |
According to the Assocation of Certified Fraud Examiners' 2008 Report to the Nation, nearly 50% of all detected fraud was detected as the result of a tip from an employee or vendor.
See ACFE Graph. |
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| Q: |
How large are the average incidents of occupational fraud? |
| A: |
The Association of Certified Forensic Examiners' (ACFE) 2008 Report to the Nation estimates that the average company loses seven percent (7%) of its bottom line annually to this type of activity. When this loss percentage is applied to the GDP for 2008, it equates to losses of $949 billion from the U.S. Economy in 2008 alone. Losses from occupational fraud, such as embezzlement, theft of intellectual property, competitive intelligence gathering and other like activities fall under the industry terms of economic or corporate espionage. |
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| Q: |
How effective do you expect Insight Tactics' CEPR training to be? |
| A: |
The Association of Certified Fraud Examiners (ACFE) published its 2008 Report to the Nation on occupational fraud. Based on responses from 949 certified fraud examiners who investigated discovered fraud from 2006 to 2008, it was determined that nearly 50% of all discovered fraud was detected by a tip from an employee. Because Insight Tactics' CEPR Training is designed to make your employees more able to objectively identify potential incidents of occupational fraud, and provides them a strong reporting structure, we expect our clients to experience a reduction in the actual incidents of the various forms of economic or corporate espionage. We also believe that the mere presence of this training and reporting structure in our client's company culture will result in those deciding whether or not to carry out these types of actions will be discouraged from doing so. |
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| Q: |
How does an employee give a tip anonymously? |
| A: |
An anonymous tip line [(800) IT-CEPR-0] is provided by Insight Tactics as a part of our training package. |
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| Q: |
What if I saw something, but don't know how to report it or who to report it to? |
| A: |
Your company will be provided a robust reporting structure, including forms and training in their use. As a part of the training package, Insight Tactics also trains an On-Site Security Officer, generally a member of the management staff, who has long seniority, is highly stable, and is considered to be of sound judgment. This On-Site Security Officer (OSSO) is responsible for receiving reports of suspected incidents of occupational fraud, and determining whether or not to escalate each incident to management, or request that Insight Tactics provide liaison services to appropriate law enforcement agencies. |
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| Q: |
What do I do if I believe a management employee is stealing from the company? |
| A: |
Do not confront the suspected person, and do not report the incident to the On-Site Security Officer. This is exactly the type of incident the anonymous reporting line was designed for. Your identity is protected by using this tip line, and will be kept confidential by Insight Tactics. |
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| Q: |
How serious does the FBI think economic and corporate espionage is? |
| A: |
The DIrector of the FBI, Robert Mueller, has stated that economic and corporate espionage, in its many forms, is the number two priority of the FBI, right behind international terrorism. On its website (http://www.fbi.gov/hq/ci/economic.htm#contact), the FBI notes that espionage did not die with the Cold War. In fact, the FBI states that many intelligence service veterans have opened businesses that provide a service called Competitive Intelligence gathering. This is another way of saying these companies use the same tactics and approaches to obtain information about competitors for their clients. There are nearly 4,000 such companies in the United States. |
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| Q: |
What does the FBI recommend for stopping losses from employee fraud? |
| A: |
The FBI's website (http://www.fbi.gov/hq/ci/economic.htm) provides a listing of six recommended steps that American corporations can use to mitigate losses from embezzlement, employee fraud, corporate espionage and other, similar loss types.
The first item on the list is "Realize the threat is real." The last item on the list is "Provide ongoing security training to your employees." |
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| Q: |
What is INFRAGARD? |
| A: |
The FBI's INFRAGARD program is a private sector outreach and information sharing initiative between the FBI and INFRAGARD members from private industry, academia and government. The mission of the INFRAGARD program is to increase information and intelligence sharing between the FBI and INFRAGARD members to strengthen the defense of our nation's critical infrastructure.
Insight Tactics is proud to be a member of the INFRAGARD program. |
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| Q: |
How long does the average incident of occupational fraud go undetected? |
| A: |
According to the Association of Certified Fraud Examiners' 2008 Report To The Nation, the average fraud goes undetected for two years. |
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| Q: |
Does Insight Tactics' Business Counterintelligence Program affect compliance with the Sarbanes Oxley Act ? |
| A: |
Yes. Insight Tactics' BCI Program is a valuable asset in the compliance with the Sarbanes Oxley Act in that instituting controls to mitigate occupational fraud is one of the directives of the Act. Our program not only institutes a robust reporting structure, but makes the employees more aware of what they should be reporting, provides and trains a specific person in the company to field the reports, thus increasing the effectiveness of all controls to protect critical or personal information that have been instituted by our clients. |
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