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How to Spot a Fraud

Published by MacQuarrie on 2009/11/21 (469 reads)

The following description comes from a bank in the UK, which distributed a handout to its employees as part of a staff training program.

Common Features of a Fraudster
  • Dictator
  • Promiser
  • Bearer of gifts
  • Charmer
  • Entertainer
  • Never there
  • Excessively secretive
  • Permanently short of money
  • Living beyond their means
  • High roller
  • Bad business record
  • Imply victim is stupid if asks explanation of anomalies in fraudster's patter
  • Manipulative
  • Psychopath
  • Believe themselves to be a victim of conspiracy

Key tips to managing a Fraud
  • Manage problem
  • be decisive
  • Have an actiion plan
  • What do you want to achieve?
  • money?
  • Identification of culprit(s)?
  • Zero tolerance policy?
  • Publicity?
  • Principle?
  • Call any advisors you have early
  • Gather evidence
  • bottom out problem / black hole
  • Asset search
  • Injunction
  • Stamina
  • Reality check on expectations
  • The money is rarely found overnight
  • Expect endless/pointless delays
  • Often late instruction of lawyer / change of lawyer

DON'T
  • Bury head in sand
  • Sit on the problem
  • think it will go away
  • think it won't get worse
  • Be emotional