Fraud and Forensic Services

Mitigate a potential fraud and safeguard your Business

One of the most effective ways to deal with the problem of fraud is to adopt methods that will decrease motive, restrict opportunity and limit the ability for potential fraudsters to rationalise their actions. Prevention techniques include the introduction of policies, procedures and controls, and activities such as training and fraud awareness to stop fraud from occurring.

Any type of fraud can result from varied relationships between victims and offenders for instance

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At Crowe, our team combines in depth knowledge of the business and market with extensive experience to prevent potential fraud risk. Our fraud detection and prevention strategy aims at designing an effective strategy to manage the risk of fraud. A sound ethical culture and an effective system of internal control are essential elements of an anti-fraud strategy.

Our diagnostic process mostly involves the following;

  •   Firstly, we perform the risk analysis of the organisation in order to understand where the risk potential exists
  •   We then initiate fraud prevention activities, to help ensure the stability and continued success of the business. This is approached systematically, both at the organisational level and at the operational level, through introduction of controls and procedures
  •   The team then develops and implements an anti-fraud strategy across the entire structure of the business, including reporting mechanisms that provide for communication of suspected fraudulent acts7

a) Know Your Employee Services #kye 

   

Know Your Employee Services is the process of verifying the qualifications, suitability and experience of a potential candidate for employment. The techniques we use includes however does not limit only to as mentioned below.

  •   Verification of employment history including checking the authenticity of the organization
  •   Verification of educational &/or professional qualifications along with verifying the accreditation of the University/Institute 
  •   Checking the credit history of the applicant
  •   Global database checks

Screening applicants reduces the likelihood of people with a history of dishonest or fraudulent behaviour being given a role within the company, and is therefore an important fraud prevention procedure.

 

Wrong hires are expensive. It is estimated that resume fraud costs employers approximately $600 billion annually.

Entrust your business in the right people.

 

 

Crowe’s proprietary online secured platform automates the process of conducting background checks, reduces the human intervention to the extent that the reports are generated on the platform and dispatched to the client. Clients also do have real time update by accessing the platform. 

 

b) Due Diligence 

 
Do you ‘Know Your Customer’ well enough?


Are you doing or planning to do business with an organisation that is not quite well known to you or your company?

 

As it is said, your customers are the lifeblood of your organisation, however, not knowing them well enough may expose and subject your business to potential risks such as the hazards of losing reputation, operational and legal risks.

 

Hence the principle of ‘Know Your Customer’ goes well beyond knowing the customer’s type of business to understanding the business relations that the customer has with other entities and networks, in order to mitigate the risk of the likelihood of getting caught in a web of potential criminal activities.

 

This briefing note sets out the principles to be implemented when new customers are acquired, and the importance of continuous monitoring of the operations of existing customers.

 

The objective is to emphasise that just ‘Knowing Your Customer’ is not enough, rather, a comprehensive due diligence carried out by experts is crucial for your business. The cost and time for conducting such due diligence procedures is not even a fraction of the financial and/or reputational loss that a business may face.

 

Importance of conducting due diligence

  •   To assess the credit history of the business
  •   Determine the likelihood of absconding odds of the business
  •   Identify any red flags – no surprises
  •   Knowing the business owners, current status of the business and understanding the future plans - independent review
  •   Analysis of financials, stocks and credit worthiness of the business – window dressing
  •   Relationships with other customers, suppliers and other stakeholders – reputational check
  •   Complying with the regulations and legal requirements
  •   Ongoing monitoring

 

c) Third-party 

 

Managing Your Organization’s “Network” of Relationships

 

In the race to stay competitive, organizations are partnering with more third parties than ever. While the rewards may be compelling, identifying, quantifying, and mitigating the risk can be an overwhelming task. Crowe’s suite of third-party risk management services can assist your organization in optimizing its program, analyzing its portfolio of relationships, and assessing individual third parties to help minimize potential harm and maximize return.

 

Crowe provides solutions, technology, and ideas to make the most of your third-party risk management activities. Whether it’s supporting discrete assignments, augmenting staff, or performing a holistic assessment of your program, our experienced team of professionals can assist you in understanding and managing third-party risks. If the third parties you work with span the globe, our team can provide you with qualified resources overseas for third-party risk management activities.

 

d) Mystery shopping 

 

At Crowe, we specialise in conducting mystery shopping for banks on their agencies, sales staff etc. We customize our solutions to suit the requirements of our clients which enhances the clients experience and assist them in mitigating the fraud risk which may have raised.

 

The methodology is as below.

mystery

 

So, can your business afford to skip the most important, yet inexpensive procedure such as mystery shopping which could save time, money and unexpected surprises?

 

e) Independent files review 

 

An independent assessment / review of the client files help in identifying the gaps and taking preventive & corrective measures before it is too late. Our team reviews the files with an investigative audit process and raises red flags, if any.

The process involves a thorough screening to check the process followed, background profile of the customer and various external/internal employees involved in processing of facilities.

 

Why independent review?

  •   To check the controls in place and ensure that the controls are effective.
  •   To closely monitor the various functional units of the bank and ensure that the process is followed as per the Regulator & bank’s guidelines, policies and procedures.
  •   To minimize the chances of fraud.

 

f) SME clients portfolio & quality monitoring process  

 

We, at Crowe, assists banks in conducting due diligence on banks clients on quarterly/annually basis as per the procedure agreed with the bank. This is in line with the with the recommendations of the United Bank Federation in 2015 for all UAE banks to develop capabilities for sourced portfolio quality and business performance through an external vendor.

 

The process would involve a field visit and capturing below details in a prescribed report format or in a specific format as required by the bank.

  •   Field visit details
  •   Legal & regulatory details
  •   Exposure of the company in the market
  •   Industry / market check
  •   Company overview (products/services, customers, suppliers and trade Profile)
  •   Key areas (revenue, fixed assets, Inventory receivables and payables, related party transaction, cash flow)
  •   Review of facilities (warehouse, factory)
  •   Site pictures

The methodology is as below.

 

sme

g) Forensic investigation 

 

Crowe team specializes in conducting forensic investigations for our banking clients in the region. Our forensic team consists of fraud examiners, anti-money laundering specialists, legal and former employee of enforcement agency. We perform the forensic investigations as per agreed upon procedures (ISRS 4400).

 

The investigation will help the bank to ascertain red flags and will include below.

  •   Ascertaining money trail and end use of funds granted for the company operations
  •   Analysing related party transactions &/or major transactions
  •   Verifying revenue from operations
  •   Verification of sales
  •   Verification of receivables
  •   Analysis and verification of purchases and major expenses during the audit period with review of payment process
  •   Review of management controls, minutes of the Board Meeting and Internal Audit System

The methodology is as below.

 

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Crowe brings unmatched expertise and experience to each fraud-prevention engagement and works fast to address and preserve your company’s financial and professional integrity.

Contact Us

Nadeem
Nadeem Maniar
Director, Risk Consulting