Fraud Consulting

According to the Report to the Nations on Occupational Fraud and Abuse, 2016 Global Fraud Study, within the past couple of years, U.S. companies and organizations lost $6.3 billion – billion – to fraud. The report further revealed that:

  • The median loss was $150,000
  • The median loss for a business with less than 100 employees, as well as companies that employ between 100 and 999 employees, was $150,000
  • This type of loss is likely to have a much greater impact on smaller organizations

That means if you’re not actively monitoring your business for occupational fraud, you could be bleeding money and not even know it. Every business has vulnerabilities. What are yours? What impact would a $150,000 loss have on your business? What would such a devastating loss mean for your future stability and the livelihoods of the men and women who depend on your business to help them provide for their own families?

Proactive or Reactive – Your Choice

When it comes to fraud in your business, you have two choices. You can take a proactive approach to fraud, put internal controls in place and monitor your business for potential fraudulent activities. Or you can sit back and wait until it’s too late and thousands of dollars have already been siphoned from your business.


Our Fraud Consulting Services

A fraud risk assessment can help your organization illuminate blind spots within your infrastructure. Essentially, it tells you where fraud is most likely to occur. More in-depth than an internal control study, a fraud risk assessment identifies your cycles and identifies risks. Then, by taking a look at your internal controls, we’ll determine how well you’re covered.

Whereas an internal control study starts with internal controls, the fraud risk assessment starts on the revenue and expense side by asking specific questions about your collection and payroll processes. We also want to determine whether your existing fraud deterrence strategy is proactive or reactive?

Your business will benefit from a fraud risk assessment if you:

  • Don’t have an internal audit department
  • Have several buildings
  • Have many collection points
  • Collect a lot of cash
  • Collect cash after business hours
  • Have had a management comment on your audit about internal control weaknesses
  • Recently implemented a point of sale system

Fraud Risk Assessment and Uniform Detection Screening (FRAUDS™)
Our FRAUDS™ (Fraud Risk Assessment and Uniform Detection Screening) program is designed to evaluate your fraud exposure and detect the most common schemes that could be perpetuated against your company.

No program can guarantee to detect all fraudulent activity, but FRAUDS™ is designed to search for the most prevalent types of employee, vendor and customer fraud, including conspiracy schemes.

Rea’s FRAUDS™ team will work with your management team to pinpoint your risk areas, implement anti-fraud policies, strengthen your internal controls and regularly monitor your transactions. FRAUDS™ is not a one-size-fits-all program. It will be customized to address risk factors common to your industry and further adjusted to meet the needs of your unique situation.

This program will not only help you detect fraud schemes that may be robbing you blind, it will help you develop and implement deterrence measures. A very small fraction of organizations that lose money to fraud are actually able to recover all of their losses. Can you afford to just hope you’re one of the lucky ones?

Email Rea & Associates to find out if our FRAUDS™ program could work for you.

Do you have the structure in place to prevent and detect fraud while promoting accountability throughout your company? An internal control study can help you identify your weaknesses allowing you to confidently manage your business – and the customers and employees you serve and employ. The end goal? Reducing risk.

We’ll first look at all of your collection points – anywhere money is coming in – as part of an internal control study. Then, after talking to the people who collect money for your business, we’ll give feedback on where your internal controls can be strengthened.

Internal control training is available, as well. We can educate your team and your governing body about internal control best practices, empowering them to look out for your entity’s best interests.

You need an internal control study if you:

  • Don’t have an internal audit department
  • Have several buildings
  • Have many collection points
  • Collect a lot of cash
  • Collect cash after business hours
  • Have had a management comment on your audit about internal control weaknesses
  • Recently implemented a point of sale system

Email Rea & Associates to find out how an internal control study could lower your risk of fraud within your business.

John has worked for you for years. And sweet Margie is like a grandmother to everyone in the company. But John’s got three kids in college, and Margie’s part-time salary can’t support her serious quilting habit.

Yes, when times are tough, and when an otherwise honest employee is backed up against a wall, they become capable of things you never thought possible. The fact is, fraud happens.

It happens more than you think, and it could even happen to you. So what happens when it does? How are you supposed to know about something that’s intentionally kept a secret from you?

Why You Need a Fraud Reporting Hotline
Tips – like those collected by fraud reporting hotlines such as Red Flag Reporting – are by far the most likely detection method for workplace theft. In fact, tips as the primary detection method of fraud increases by nearly 40 percent among organizations with a hotline. And, according to the Association of Certified Fraud Examiners, organizations with some form of hotline in place saw a much higher likelihood that fraud would be detected by a tip (47 percent) than organizations without such a hotline (28 percent).

The bottom line is this: if you give your employees a secure, anonymous way to report fraud or suspicious or dangerous behavior, such as the Red Flag Reporting hotline, they will use it.

When you put a hotline in place, you show your employees that your organization is committed to their safety and well-being. After all, if fraud isn’t taken seriously and combatted proactively, what message is that sending? Other employees may rationalize that it’s okay for them to steal, too. And, as an employer, you’ll have comfort knowing that the hotline may help identify employee concerns or complaints before they get worse.

How Red Flag Reporting Works
With a subscription to Red Flag Reporting, your employees will have 24/7/365, secure, anonymous access to a toll-free number and Web reporting portal. If they see something –anything from fraud to safety concerns to harassment to otherwise unethical behavior – they can report it promptly and anonymously.

You’ll also receive material and messages to push out to your team to help educate them about the hotline and encourage them to use it. And you’ll have the peace of mind in knowing that your employees have a place where they can report suspicions without worries of harming their relationships or putting their own safety in jeopardy.

Once someone makes a tip it goes straight to an experienced Certified Fraud Examiner. Then, after a preliminary assessment of the matter, we’ll inform you of the report and figure out next steps, which will vary depending on the nature and severity of the tip.

Learn More About Red Flag Reporting
Many business owners don’t recognize that fraud doesn’t just hurt them – it hurts their employees, too. From having to forgo pay increases because funds were embezzled to experiencing the stress that comes from working with dishonest co-workers, fraud can hurt good employees.

We’re glad that our clients rely on us for their audits and internal controls. But, when it comes to fraud prevention, we know that we need to bring in the specialists and that’s why we’ve partnered with Red Flag Reporting.

Find out how a Red Flag Reporting fraud hotline can work for you; request more information about Red Flag Reporting and other strategies that can help defer fraud in your business or organization.

Do you suspect fraudulent activity within your company? Perhaps the numbers in your company’s financials seem off, or maybe you’ve caught wind of rumors about suspected fraud. Whatever the case may be, you’ll want to thoroughly first investigate any fraud allegations. But do you know what you’re looking for – or even where to begin looking?

Rea’s team of fraud investigators is made up of specially certified professionals who can help you and law enforcement officials investigate fraud charges. Our professionals have accumulated substantial experience working with businesses of all sizes in investigating and identifying fraudulent activity. In other words, they know exactly what to look for.

We also have a strong litigation support team at Rea to provide clients with their specific litigation support needs. By rapidly responding to your needs with accurate and reliable data and analysis, Rea is sure to be a major asset to your litigation team.

If you need support in investigating fraud, presenting a credible legal case, negotiating settlements or calculating damages, Rea can help. Give us a call or send us an email.

Rea & Associates can help you manage your risk for fraud as well as help you investigate active fraud cases and provide litigation support and damage calculations when fraud does occur. Email Rea & Associates to find out what solutions is right for you.