This document discusses the background and types of fraud as well as detection, investigation, and prevention. It begins by noting that fraud has existed since ancient times. The document then defines fraud as intentional deception for personal gain or harm and notes there are approximately 20 common types. Detection of fraud can come from tips and clues during information gathering and investigation while prevention relies on developed procedures.

1.  Background of Fraud
 Types of Fraud
 Detection &
 Investigation
BALTIC SECURITY LLC

2.  300 BC a Greek merchant Hegestratos
took large insurance policy.
 Hegestratos planned to sink his empty
boat, keep the loan and sell the corn. But
he drowned.
 Is correct to to assume that fraud has
been around since the dawn of
commerce.
BALTIC SECURITY LLC

3. Background of Fraud
In the broadest
sense, fraud is
intentional
deception made for
personal gain or to
damage another
entity.
BALTIC SECURITY LLC

4.  Fraudulent activity mostly performed
over the media and social network.
 Apx. 20 types of fraud
 Securities fraud, tax
embezzlelement, insurance
fraud, charlatanism, advance fee etc.
BALTIC SECURITY LLC

5.  Defrauding people or entities of money
or valuables is a common purpose of
fraud.
 Fraudulent "discoveries", e.g. in science
, to gain prestige rather than immediate
monetary gain.
BALTIC SECURITY LLC

6. •Trust & empowerment >
Creates opportunity.
• Internal or external circumstances >
Creates motivation.
• As a result loss apx. 5% of Y
revenue.
BALTIC SECURITY LLC

7.  Not to create environment of
suspicion and mistrust.
 Moreover, constant reporting to
multiple controllers has to be
reasonable, cost and time effective
 Bureaucracy drawbacks.
BALTIC SECURITY LLC

8.  No universal approach
 External independant
consultants
 View from aside
 Knowledgeable specialists
BALTIC SECURITY LLC

9. Tips/ hints may lead to
uncover fraudulent activities
and reduce losses.
E.g. round numbers, presence
of offshore firms, simple
mistakes in dates, and indeed
the existence of the companies.
BALTIC SECURITY LLC

10.  Information gathering followed by
interview or other relavant actions.
 First hints of possible fraud are
detected it has to be investigated.
 Covert investigation.
 Not to be biased and look at the
issue from all the possible angels.
BALTIC SECURITY LLC

11.  As enough info is gathered
the subject and ideally
possible links shall be
simultaniously approached
for explanations.
 Finally, depending on the
harm possible solutions
may be offered to correct
the mistake the person
done.
BALTIC SECURITY LLC

12.  Every action has a reaction.
 Thoroughly developed fraud
prevention proceedures able to save
thousands on losses, law suits or
harm to reputation.
BALTIC SECURITY LLC