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ZenFraud

ZenFraud. How to become a master thief. Rita Crundwell. Dixon, Illinois Comptroller. Bernie Madoff. Nasdaq chairman owner of investment company. Becoming a master thief. Be Believable Have a Cause Develop Your Plan Calm Your Conscience Execute Your Plan If Caught, Settle Out of Court.

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ZenFraud

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  1. ZenFraud How to become a master thief

  2. Rita Crundwell Dixon, Illinois Comptroller

  3. Bernie Madoff Nasdaq chairman owner of investment company

  4. Becoming a master thief • Be Believable • Have a Cause • Develop Your Plan • Calm Your Conscience • Execute Your Plan • If Caught, Settle Out of Court

  5. Be believable

  6. Want to be a pilot? • Uniform • Pilot's Identification • FAA Identification

  7. Abagnale's Accomplishments • Flew over 250 flights -- free • Flew over 1,000,000 miles -- free • Cashed several hundred thousand in fake checks • Piloted a plane with 140 people on board though "he could not fly a kite" ...all before he was 19 years of age

  8. Trust is the currency of fraud

  9. You are in luck... You are already believable

  10. What does a typical fraudster look like?

  11. “There is one way to tell if a man is honest--ask him. If he says yes, he's a liar.” • –Groucho Marks

  12. Have a cause

  13. Causes • Gambling Habit • Drug Habit • Medical Bills • Keeping up with the Joneses

  14. Compelling unshareable needs

  15. Develop Your plan

  16. How? • Dependent Upon Your Position • Look for Opportunities • Places Lacking Segregation of Duties • See Auditor SAS 115 Letter • Epiphanies

  17. 36% of Frauds Corruption-Related

  18. Kickbacks • Difficult to Detect • No Conversion Problem (Cash) • Fraudster Thinks It Harms No One

  19. Calm your conscience

  20. I am borrowing

  21. I earned it

  22. Ask others to join in (or notice they already have)

  23. “When we do something questionable, the act of asking our friends to join in can help us justify our own questionable actions.” • –Dan Ariely, • The (Honest) Truth About Dishonesty

  24. Above all, you must overcome the objections of your conscience

  25. If you don't have a conscience, skip this step

  26. “Each of us has a limit to how much we can cheat before it becomes absolutely sinful." • –Dan Ariely, • The (Honest) Truth About Dishonesty

  27. Execute your plan

  28. Do so in incrementS

  29. Then...Listen for sirens

  30. The coast is clear

  31. Careful... greed is your enemy

  32. If caught, settle out of court

  33. reasons to settle • You don't want a criminal record, your next employer may perform a background check • Remind the government that this would reflect poorly on the elected officials • Remind the government it's cheaper and easier to keep things quiet

  34. Fraud prevention:Take Aways • Trust Your Mother, But Cut the Deck • Know Your System Weaknesses • Develop a Fraud Prevention Program • Pay Attention to Signs

  35. Charles hall • McNair, McLemore, Middlebrooks & Co., LLC • Email- chall@mmmcpa.com • Phone - 478-330-5248 • Blog - CPA-SCRIBO.com • Book - The Little Book of Local Government Fraud Prevention - Amazon

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