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Do you know how technology is currently being used to fight fraud? Learn more from the key findings of the 2024  ACFE Anti-Fraud Technology Benchmarking Report . Access the full report. Here's one Key Finding you may find interesting. What's your organization's position? See other Key Findings here in this cool inforgraphic: These are just a small sample of things to come. Fighting Fraud is an ever-changing landscape and we must adapt accordingly. AI is definitely part of that adaptation. Join us in spreading the word as part of #FraudWeek.

Blevins Associates Consulting is an Official Supporter of International Fraud Awareness Week, which helps demonstrate our commitment to preventing and detecting fraud. What's Fraud Awareness Week? International Fraud Awareness Week, or Fraud Week, was established by the Association of Certified Fraud Examiners (ACFE) in 2000 as a dedicated time to raise awareness about fraud. The week-long campaign encourages business leaders and employees to proactively take steps to minimize the impact of fraud by promoting anti-fraud awareness and education. Organizations and individuals are encouraged to register as Official Supporters prior to International Fraud Awareness Week, and to host training opportunities, distribute anti-fraud information or otherwise promote anti-fraud activities during the week. But wait, there's more! Download this FREE guide on how you can be a fraud fighter in your organization. Get tips on how to spot red flags and what to do if you suspect there's fraud in your organization. Be sure to subscribe to our site so we can stay in touch. Blevins Associates Consulting is dedicated to helping other organzations prevent and detect fraud. #FraudWeek #FraudAwareness #FraudPrevention #BlevinsAssociatesConsulting

A recent case underscores the severity of this issue: In March 2024, the former general manager of La Casita Mexicana Restaurant in Bell, California, was arrested for allegedly embezzling approximately $40,000. The manager reportedly used the identities of 16 employees to write duplicate checks, one for the employee and another for himself, depositing the latter into his personal account. This fraudulent activity not only caused significant financial strain on the restaurant but also breached the trust between management and staff. The Importance of Robust Internal Controls To safeguard against such fraudulent activities, restaurant owners must implement and regularly review robust internal controls. Blevins Associates Consulting specializes in assisting restaurants in enhancing their internal controls to prevent fraud and theft. Their expertise includes preventing cash, inventory, and payroll fraud within the industry. Conducting a Fraud Risk Assessment Engaging a Certified Fraud Examiner to perform a comprehensive fraud risk assessment is a proactive step toward identifying and mitigating potential vulnerabilities. While this assessment involves an upfront investment, it is a prudent measure that can prevent more significant financial losses and protect the establishment's reputation in the long term. Contacting Blevins Associates Consulting Restaurant owners concerned about fraud risks are encouraged to contact Blevins Associates Consulting for a thorough evaluation of their internal controls and to conduct a fraud risk assessment. Michael Blevins, a Certified Fraud Examiner and owner of the firm, can be reached at Michael@BlevinsAssociates.com  or by phone at (760) 206-3717. Conclusion Proactively addressing fraud through robust internal controls and regular assessments is essential for the sustainability and success of any restaurant. By investing in these preventive measures, owners can safeguard their businesses against financial losses and maintain the trust of their customers. #RestaurantFraudPrevention #InternalControls #FraudRiskAssessment #BlevinsAssociates #CertifiedFraudExaminer #FinancialLossPrevention #ReputationalProtection #RestaurantCompliance

Download this fun way to learn about fraud - you get to choose your own adventure to catch the bad guy. International Fraud Awareness Week, or Fraud Week, was established by the Association of Certified Fraud Examiners (ACFE) in 2000 as a dedicated time to raise awareness about fraud. The week-long campaign encourages business leaders and employees to proactively take steps to minimize the impact of fraud by promoting anti-fraud awareness and education. Organizations and individuals are encouraged to register as Official Supporters prior to International Fraud Awareness Week, and to host training opportunities, distribute anti-fraud information or otherwise promote anti-fraud activities during the week. Fraud Week starts next week, and @BlevinsAssociatesConsulting is a proud sponsor.

At Blevins Associates Consulting , we understand that fraud is an ever-evolving threat to your business. The risks you face today, from vendor fraud to internal threats, can disrupt operations and impact your bottom line. But that’s where we step in. We don’t just help you identify risks—we provide the expertise and solutions needed to protect your business and ensure long-term success. Our Comprehensive Approach to Fraud Risk Our team goes beyond simple fraud detection. We dig deep into your business processes, identify vulnerabilities, and work with you to create customized strategies that safeguard your assets. Fraud risks come in many forms, including: Vendor Fraud:  Whether it's invoice manipulation or false billing, our team helps implement rigorous controls to detect and prevent these threats. Internal Fraud:  Employee misconduct or collusion can go unnoticed without strong internal safeguards. We assist in building frameworks to prevent, detect, and respond to internal fraud. Cybersecurity Threats:  Phishing, impersonation, and other cyberattacks are on the rise. We equip your team with the tools and training to recognize and mitigate these risks. Trusted Solutions with Proven Experience At Blevins Associates Consulting, we pride ourselves on our experience  and reliability . We’ve worked with businesses of all sizes, across industries, to create tailored fraud prevention strategies . Our hands-on approach ensures you get practical solutions, not just recommendations. Partnering for Your Success Our goal isn’t just to offer services but to partner  with you as a trusted advisor. We believe in creating long-term relationships, where your success is our success. By combining our expertise with your business’s unique needs, we’ll help you stay ahead of fraud risks and achieve sustainable growth. #FraudRiskManagement #BusinessConsulting #FraudPrevention #VendorFraud #InternalFraud #CyberSecurity #BusinessSolutions #BlevinsAssociates #BusinessSecurity #TrustAndExperience

Vendor relationships are the backbone of any successful business, but what if that trust is betrayed? Fraudulent activities by vendors can be financially devastating, so it’s essential to recognize and prevent vendor fraud before it harms your operations. ⚠️ Red Flags to Watch for: 1. Invoice Fraud: Watch for inflated or duplicate invoices, or bills for goods or services that were never delivered. Scrutinize every invoice and verify the authenticity of vendors and their billing practices. 2. Kickbacks and Bribery: Vendors offering incentives to employees in exchange for favorable treatment or inflated contracts are a serious concern. Strict no-gift policies and constant oversight can prevent these unethical practices. 3. False Billing Schemes: Vendors may conspire with employees to submit fake invoices or overcharge for goods. Implement internal checks to verify the accuracy of all invoices before approving payments. 4. Phishing & Vendor Impersonation: Cybercriminals frequently pose as vendors, using fake emails or calls to trick employees into unauthorized payments or disclosing sensitive information. Train your team to identify phishing attempts and verify vendor identities before acting. 5. Contract and Procurement Fraud: Regularly audit contracts and procurement processes. Be wary of inflated prices or unauthorized changes, which are often indicators of fraudulent activity. 🚨 Take Action: Staying vigilant and enforcing strong verification processes are crucial for protecting your business from vendor fraud. Prioritize security, accountability, and constant review to safeguard your finances and reputation. #VendorFraud #BusinessSecurity #FraudPrevention #InvoiceFraud #Kickbacks #CyberSecurity #BusinessTips #ProtectYourBusiness #FraudAwareness #ProcurementFraud

Growth is an exciting phase for any company. It signifies success, market acceptance, and potential for future expansion. However, along with growth comes an increased complexity in operations, which can introduce new risks, especially in terms of fraud. For companies that have expanded their product lines or services without updating their fraud risk assessments, the consequences can be severe. This blog post will delve into why it's crucial to conduct thorough fraud risk assessments during periods of growth and how neglecting this can put a company's future at risk. Understanding Fraud Risk Assessments Fraud risk assessments are systematic evaluations of an organization's susceptibility to fraudulent activities. These assessments identify vulnerabilities within a company's processes, systems, and controls that could be exploited by internal or external parties. They are essential for maintaining the integrity of financial reports, safeguarding assets, and ensuring compliance with legal and regulatory requirements. Growth and New Risks As companies grow, they often introduce new products or services, expand into new markets, or undergo organizational changes. Each of these developments can introduce new risks that were not previously considered. Here are a few examples of how growth can lead to new fraud risks: 1. New Products and Services: Launching new products or services can create opportunities for fraud. For instance, a company entering the digital services market might face cyber fraud risks that were not present with its traditional products. 2. Geographical Expansion: Expanding into new regions can expose a company to different regulatory environments and local fraud schemes. Understanding these local risks is critical to preventing fraud. 3. Increased Transactions: Growth often leads to a higher volume of transactions, which can make it easier for fraudulent activities to go unnoticed within the larger dataset. 4. Complex Supply Chains: A more extensive supply chain increases the risk of fraud through vendor kickbacks, counterfeit goods, or false invoicing. 5. Organizational Changes: Rapid growth can lead to organizational restructuring, which might disrupt existing internal controls and create opportunities for fraud. The Consequences of Ignoring Fraud Risk Failing to reassess fraud risk in the face of growth can lead to several negative outcomes, including: Fraud can result in significant financial losses, impacting profitability and shareholder value. Reputational Damage: A company’s reputation can be severely damaged if fraud becomes public, leading to loss of customer trust and loyalty. Legal and Regulatory Penalties: Non-compliance with anti-fraud regulations can result in hefty fines and legal actions. Operational Disruption: Fraud investigations can disrupt daily operations, diverting resources away from core business activities. Implementing Effective Fraud Risk Assessments To mitigate these risks, companies should integrate fraud risk assessments into their growth strategies. Here’s how: 1. Regular Updates: Fraud risk assessments should be updated regularly, especially after significant changes in the company's operations or structure. 2. Comprehensive Approach: Assessments should cover all aspects of the business, including new products, services, and markets. This involves understanding the specific fraud risks associated with each area. 3. Employee Training: Staff should be trained to recognize and report fraudulent activities. This creates a culture of vigilance and accountability. 4. Technology Utilization: Implement advanced technologies like AI and machine learning to monitor transactions and identify unusual patterns that may indicate fraud. 5. Third-Party Audits: Engaging external auditors can provide an unbiased perspective on the company’s fraud risk and the effectiveness of existing controls. 6. Whistleblower Mechanisms: Establish clear and confidential channels for employees to report suspected fraud without fear of retaliation. Conclusion Growth is a double-edged sword. While it brings numerous opportunities, it also introduces new risks that need to be managed proactively. Fraud risk assessments are not just a regulatory necessity; they are a strategic tool that helps safeguard the company’s future. By continuously evaluating and updating these assessments, companies can protect themselves from the potentially devastating impacts of fraud and continue to grow with confidence and integrity. In today’s fast-paced business environment, staying ahead of fraud risks is not just a matter of good practice—it’s a critical component of sustainable growth and long-term success. If your organization has not conducted a fraud risk assessment lately, or if you're not sure where to start, we can help. It's what we do. For more information, visit our website today at www.BlevinsAssociates.com

If not, you are at risk for fraud. If you do not have internal controls or have not refreshed your fraud risk program, now is the time to do it. It's far less costly to prevent fraud than it is to be a victim of it.

In the Association of Certified Fraud Examiner's 2024 Report to the Nations, the number and estimated costs associated with each fraud scheme "bucket" has some alarming numbers. Notable is that a typical fraud case lasts longer than 12 months before it's detected. Not good. Take a look - these are stats for "a typical organization". This graphic issustrates the importance of effective fraud risk management within any organization. If you need help protecting your company, contact us .

In today's intricate business environment, the looming threat of fraud poses significant challenges, jeopardizing both the financial health and reputation of organizations globally. As a Certified Fraud Examiner (CFE), I recognize the urgency of adopting proactive measures and maintaining vigilance against increasingly sophisticated fraudulent tactics. My expertise in conducting occupational fraud risk assessments plays a pivotal role in fortifying my clients’ businesses against potential threats. At the core of a CFE’s skill set lies the ability to unravel, analyze, and mitigate risks associated with fraudulent activities. Our responsibilities extend beyond mere detection; we systematically evaluate vulnerabilities within an organization's operations, processes, and internal controls. CFE’s bring a unique blend of skills to the table, combining forensic accounting, investigative prowess, and a profound understanding of fraud methodologies. We also identify red flags, patterns, and anomalies indicative of fraudulent behavior. In my consulting practice, we specialize in: Identifying Fraud Risks: We delve into the intricacies of business operations to pinpoint areas vulnerable to fraudulent activities. This involves scrutinizing financial transactions, internal controls, procurement processes, and employee behavior to uncover potential risks. Assessing Internal Controls: We go beyond identification to evaluate the effectiveness of existing control mechanisms in mitigating fraud risks. This entails assessing the design and implementation of internal controls, segregation of duties, and adherence to regulatory standards. Conducting Investigations: In cases of suspected fraud, we leverage our investigative acumen to uncover the truth. From gathering evidence and interviewing stakeholders to analyzing financial data, we employ a systematic approach to uncover fraudulent schemes and perpetrators.   Fraud risk assessments serve as a proactive mechanism for organizations to preemptively identify and mitigate potential threats. By partnering with us to conduct comprehensive assessments, businesses stand to gain several pivotal advantages: Preventative Measures : Fraud risk assessments empower organizations to proactively identify vulnerabilities and implement preventive measures before fraudulent activities escalate. By fostering a culture of vigilance and accountability, businesses can deter potential perpetrators and safeguard their assets. Cost Savings : The financial repercussions of fraud can be staggering, encompassing monetary losses, legal fees, reputational damage, and regulatory penalties. By investing in robust fraud risk assessments, organizations can mitigate these risks and avert potentially catastrophic financial losses. Enhanced Compliance : In an increasingly regulated environment, compliance with regulatory standards is non-negotiable. Fraud risk assessments enable organizations to demonstrate due diligence and compliance with regulatory mandates, thereby mitigating the risk of legal sanctions and reputational harm. Preservation of Reputation : The fallout from a fraud scandal can tarnish an organization's reputation irreparably, eroding stakeholder trust and credibility. By proactively addressing fraud risks through comprehensive assessments, businesses can uphold their integrity and preserve the trust of customers, investors, and partners. In an era defined by evolving threats and unparalleled complexities, the role of Certified Fraud Examiners in conducting fraud risk assessments cannot be overstated. By leveraging our specialized expertise, CFEs enable organizations to navigate the treacherous waters of fraud with confidence and resilience. Proactive fraud risk assessments are a strategic imperative—one that safeguards assets, preserves reputations, and fortifies the foundations of integrity and transparency. The collaboration between organizations and CFEs is a testament to our unwavering commitment to combat fraud and uphold the principles of accountability, transparency, and ethical conduct in the corporate landscape.

By: Michael Blevins, CFE Restaurants, like any business, need robust internal controls to ensure the quality of goods and services, maximize profits, and mitigate fraud and theft. Effective internal controls are particularly vital for restaurants due to the industry's unique characteristics, including frequent cash transactions, high daily transaction volumes, numerous employees handling cash, and rapid employee turnover. These factors complicate the establishment and enforcement of internal controls. The Fraud Triangle Preventing fraud and embezzlement is a primary focus of internal control systems in restaurants. According to the Fraud Triangle theory, three conditions are necessary for fraud to occur: Need : Economic or psychological deficiencies driving individuals to steal. Opportunity : Lapses in fraud prevention enabling dishonest actions. Rationalization : Justifying the act of theft.     Key Areas of Internal Control Cash Handling Cash theft is a prevalent and challenging issue in restaurants. It can happen before transactions are recorded or after, but before deposits are made. To prevent cash theft, restaurants should: Limit and know check signers. Reconcile bank accounts monthly and review reconciliations. Segregate accounting functions, such as separating cash management from disbursement documentation. Compare daily deposit reports with bank deposit records and point-of-sale (POS) reports. Inventory Management Food and beverage theft is a significant problem due to their portability and universal usage. Internal controls should include: Independent physical inventory checks compared to book inventory. Use of pre-printed inventory forms, orderly item arrangements, and dual-person inventory counts. Investigating and approving significant inventory discrepancies. Restricting inventory access and securing stock in locked facilities. Payroll Payroll is the largest expense for most restaurants, making internal controls in this area critical. Restaurants should: Segregate responsibilities, such as authorizing employment and wage rates, maintaining the payroll system, generating checks, and reconciling payroll bank accounts. Routinely examine payroll records, including employees' names, authorized gross pay, hours worked, deductions, and net pay by an independent authority. Accounts Payable Internal controls in accounts payable are crucial to prevent fictitious vendor creation and cash misappropriation. Restaurants should: Establish control over received vendor invoices. Compare vendor invoices with receiving reports and purchase orders. Cancel all vouchers, invoices, and supporting documents when paid. Restrict new vendor setups and segregate duties among payroll personnel. Financial Controls Financial controls involve reviewing financial statements and leveraging technology, such as POS systems and financial accounting software. Effective measures include: Limiting POS system access and functions to specific employees. Creating rigorous cash and credit card tracking systems. Monitoring and analyzing income statements and balance sheets to avoid unexpected adjustments. Routinely inputting sales, invoices, and payroll records, and reconciling all balance sheet accounts. Using financial statements to monitor weekly and monthly results promptly.   Case Study: The Importance of Robust Internal Controls A study by the Association of Certified Fraud Examiners (ACFE) found that the average loss per fraud incident in the hospitality industry was $62,000. In one notable case, a restaurant in Chicago discovered a long-time employee had embezzled $300,000 over several years due to weak internal controls. The employee manipulated payroll records and created fictitious vendors to divert funds. Implementing stricter controls, such as segregation of duties and regular audits, could have prevented this fraud. Conclusion Restaurants' susceptibility to theft necessitates robust internal controls. By scrutinizing every operational function and establishing comprehensive internal controls, restaurant owners can effectively mitigate fraud and embezzlement risks. Investing in these systems builds a solid financial foundation and enhances the likelihood of detecting and preventing fraudulent activities. Michael Blevins is a Certified Fraud Examiner and the founder of Blevins Associates Consulting.  Blevins Associates Consulting  specializes in fraud within the restaurant industry.  Michael can be reached at Michael@BlevinsAssociates.com  or by phone at 760-206-3717. #CertifiedFraudExaminer #RestaurantFraud #BlevinsAssociatesConsulting #ProtectYourBusiness #FraudInRestaurants #InternalControls

Fraud can lurk within the shadows of any organization, a threat that undermines trust, integrity, and ultimately, the success of a business. From embezzlement to falsifying records, workplace fraud poses a significant risk to the financial health and reputation of a company. In this blog post, we delve into the world of workplace fraud, shedding light on effective strategies to detect, prevent, and mitigate this insidious threat. Understanding Workplace Fraud Workplace fraud manifests in various forms, often camouflaging itself behind seemingly legitimate transactions and activities. Misappropriation of assets, financial statement manipulation, and corruption are just a few examples of how employees can exploit their positions for personal gain. Recognizing the red flags and vulnerabilities that leave organizations susceptible to fraud is the first step in fortifying against this clandestine danger. The Cost of Fraud The repercussions of falling victim to workplace fraud extend beyond mere financial losses. Trust among employees and stakeholders erodes, tarnishing the reputation of a company for years to come. The aftermath of a fraud incident can be devastating, with legal battles, damaged relationships, and a diminished market standing all part of the fallout. It's clear that the stakes are high when it comes to safeguarding against fraudulent activities within the workplace. Strategies for Mitigating Workplace Fraud Risks Strengthening Internal Controls Implementing robust internal controls is crucial in creating a layered defense against potential fraudulent schemes. Regular audits, segregation of duties, and clear policies and procedures can act as deterrents to individuals contemplating engaging in fraudulent activities. Clear communication of expectations and consequences reinforces the organization's commitment to upholding ethical standards. Encouraging Whistleblowing Establishing channels for anonymous reporting empowers employees to speak up when they suspect fraudulent behavior. Encouraging a culture of honesty and integrity, where employees feel safe to report malfeasance without fear of retaliation, can help identify and address fraudulent activities at an early stage. Conducting Regular Training and Awareness Programs Educating employees on the signs of fraud and the importance of ethical conduct is vital in creating a vigilant workforce. Regular training sessions that highlight common fraud schemes, emphasize the importance of data security, and provide guidance on reporting suspicions can bolster the organization's defenses against fraudulent activities. Take Action Today In conclusion, safeguarding against workplace fraud requires a proactive and multi-faceted approach. By understanding the nature of fraud, recognizing its potential impact, and implementing comprehensive strategies to detect and prevent fraudulent activities, organizations can mitigate the risks posed by unscrupulous individuals seeking to exploit vulnerabilities within the workplace. Together, let us shine a light on the hidden threat of workplace fraud and take decisive steps to protect the integrity and success of our businesses. Remember, the fight against fraud begins with each one of us. Stay vigilant, stay informed, and together, we can thwart the schemes of those who seek to compromise the values and principles upon which our organizations stand. Let us rise to the challenge and secure a future where transparency, trust, and accountability reign supreme.