Introduction

• Statistical overview of the fraud problem
• Who commits fraud
• Why employees commit fraud (The Fraud Triangle)
• Lessons from fraudsters

Common Types of AP Fraud Today

• Vendor/billing fraud schemes
• ACH fraud
• Fraudulent AP financial reporting
• Kickbacks/bribery
• Conflicts of interest
• P-Card fraud

Red Flags of AP Fraud

• Conducting a Fraud Risk Assessment and Recognizing the Red Flags of Internal Fraud
• The Fraud Risk Mitigation Cycle
• Implementing an organization-wide system for detecting, preventing and investigating fraud

Fraud Detection

• How Frauds Are Most Often Detected
• Additional General Detection Methods
• Data Mining/Analytics for fraud detection
• Examples of Fraud Audit Techniques at Work

Anti- Fraud Controls for Account Payable

• Internal Controls and Other Fraud Prevention Measures:
• Who Should Manage Anti Fraud Activities for AP
• Internal Controls: Do’s and Don’ts
• General controls: Segregation of Duties, Delegation of Authority, Background Investigation
• Specific AP Operations-Level Controls.

Sophisticated ways fraudsters are targeting your Accounts Payable department especially during the current global pandemic

• Fraud during COVID-19 and mitigating the risk
• Business Email Compromise, the associated red flags, and how to prevent it
• Working in partnership to prevent fraud in AP

Critical Anti-Fraud Audits under Procurement and Accounts Payable

• A basic understanding of fraud and the different types of fraud that can occur
• The fraud triangle and statistics from the ACFE
• Different data analysis tools that can be utilized (ACL vs. IDEA or just Excel)
• Understanding the data that A/P or IT can provide for analysis
• Different data analysis tests that can be performed on accounts payable data
• Examples of proactive accounts payable anti-fraud reviews
• Different data analysis tests that can be performed on purchasing data

Electronic Payment Fraud Prevention Best Practices

• Identify the types of ACH payments
• Differentiate between six types of ACH payment fraud, including the two fastest growing types
• Understand and address the issues around the BYOD issue as it affects your organization’s payment process
• Navigate around the limited legal protection from your bank
• Instruct your bank to use certain products to protect your company
• Implement best payment process practices that affect ACH payments to protect your organization

New Fraud to be aware off in 2022/23

• Phishing: How Organizations Can Immediately Protect Their People From This Dangerous Threat
• Training plans are needed to train employees on how to recognize phishing emails.
• Add internal controls such as multi-factor authentication by calling the recipient and confirming the bank account information. For all wires, add a verbal approval with your bank.
• Stop giving special treatment to C Levels. Always follow the process that has been put into place, because they are put into place to protect not only the company but also the employee.
• Passwords
• Enable Multi-Factor Authentication on each eligible account. This can be via SMS (text message) or via a separate security device (key fob) or software that generates a single-use authorization code.
• Password Managers – especially if MFA is not possible.
• USB Flash Drives

USB flash drives are being used by Cybercriminals. How? They can be loaded with malicious code, and that code can imitate a keyboard, entering commands when you plug them in. all it takes is one innocent team member plugging a USB drive.

• Disabling USB flash drives in company-owned devices.
• Some companies fill the drives with Epoxy glue to fill the USB connections
• Employees need to be trained to not pick-up random USB flash drives. (Or charging cords, etc. at airports)