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February 25, 2011

Fraud/Corruption Continues in the Spotlight

by jparker

It seems as if there is no end to high profile fraud and corruption cases in the news.  In the past couple of weeks, we’ve seen the two senior executives at China’s leading e-commerce site, Alibaba, resign due to pervasive fraud on their site and the former Security Director for Rooms to Go charged in a major kickback scheme by federal prosecutors.

In addition to the direct losses caused by these types of frauds, organizations face business disruption, bad publicity, and, in the case of U.S. organizations, potential Sarbannes-Oxley issues or FCPA compliance liability if the fraud or kickback involves government officials.  While this has typically been the domain of the finance or internal audit group, the Loss Prevention/Asset Protection function may have a role to play.  This topic certainly merits a conversation with your organization’s CFO to discuss how your function can support and assist on this important topic.

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