Financial Services Anti-Fraud Risk and Control Workbook

Peter D. Goldmann is founder and President of White-Collar Crime 101 LLC, the parent company of FraudAware and publisher of the monthly newsletter, White-Collar Crime Fighter. He has been the Publisher and Editor of White-Collar Crime Fighter for over twelve years and is recognized as a leading expert in the areas of fraud detection, prevention, investigation, and training. He has written numerous articles on practical approaches to fraud prevention and detection.

Acknowledgments.

Introduction: Brief History of Fraud in the Financial Services Industry.

Chapter 1 Why No Financial Services Institution Is Immune to Fraud.

Statistical Perspective.

What Is Fraud?

Myths and Realities about Financial Services Fraud.

Review Points.

Chapter Quiz.

Chapter 2 The Human Element of Fraud.

Who Are the Bad Guys?

Insider Threat.

The Fraud Triangle.

The Fraud Triangle in Financial Services.

Pressure at Lehman: An Extreme Example.

Opportunity and Rationalization.

Rationalizing High-Level Fraud.

A Fraud Diamond?

Review Points.

Chapter Quiz.

Chapter 3 Internal Fraud: Loan and Mortgage Fraud.

Loan Fraud (Nonresidential Mortgage).

Mortgage Fraud.

Types of Internal Mortgage Fraud to Beware Of.

Red Flags of Employee-Level Loan and Mortgage Fraud.

Preventing Employee-Level Loan and Mortgage Fraud.

Review Points.

Chapter Quiz.

Chapter 4 Employee-Level Embezzlement.

Looting Customer Accounts.

Looting Noncustomer Funds.

Theft of Confi dential Information.

Insider Abuse of Computer Systems.

Red Flags of Employee-Level Embezzlement.

Preventing Employee-Level Embezzlement and Information Theft.

Review Points.

Chapter Quiz.

Chapter 5 Internal Fraud: Management Level.

Looting and Embezzlement.

Illegal Financial Transactions/Corruption.

Fraudulent Financial Reporting.

Deceiving Borrowers, Investors, and Regulators.

Red Flags of Management-Level Internal Fraud.

Management-Level Fraud Prevention Checklists.

Review Points.

Chapter Quiz.

Chapter 6 External Fraud against Financial Services Companies.

Externally Perpetrated Loan Fraud (Nonmortgage).

Externally Perpetrated Mortgage Fraud Schemes.

New Forms of Identity Theft and Fraud.

Red Flags of External Fraud.

External Fraud Prevention Checklists.

Review Points.

Chapter Quiz.

Chapter 7 Conducting a Successful Fraud Risk Assessment.

Getting It Done.

Procedures for Conducting a Fraud Risk Assessment.

Roles of the Board and Management in Fraud Risk Assessments.

Review Points.

Chapter Quiz.

Chapter 8 Legal and Regulatory Compliance for Controlling Fraud Risk.

Fraud Rules to Take Seriously.

Hypothetical Case: Compliance and InfoSecurity.

Develop and Implement a Response Program.

Future Regulation: A Prediction.

Review Points.

Chapter Quiz.

Chapter 9 Fraud Detection in Financial Services Companies.

Basic Detection Methods.

Advanced Fraud Detection Tools and Techniques.

Essentials of Fraud Auditing in Financial Institutions.

Essentials of Automated Auditing.

Conclusion.

Review Points.

Chapter Quiz.

Appendix A: Answers to Chapter Quizzes.

Appendix B: Answer Key for Case Studies.

Notes.

Glossary.

About the Author.

Index.

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