Fraud & Embezzlement | An expensive lesson about lack of adherence to policy.
When the founder of a non-profit foundation received word from a trusted employee that another may have engaged in fraudulent activity, the founder started his own investigation and quickly realized he needed help. He called in Risk Confidence Group. Our investigators established a pattern of fraud, associated a dollar value to the fraud, and identified and gathered evidence necessary for civil and criminal remedies. We conducted interviews of employees and forensic examinations of electronic devices. Documentation including financial, personnel and policy records were reviewed. As a result, evidence of fraud was found along with information that showed there was intent, planning, and a pattern of employees failing to adhere to established organization policies. Our findings provided the founder and organization executives with a clear picture of the scope of fraud and the documentation necessary to seek civil or criminal remedies. Additionally, foundation executives were armed with a host of recommendations to mitigate compliance and communication gaps and reduce the risk of future fraud.
We worked with: Founders, CEO, CFO, Human Resources, and Outside Legal Counsel
Insider Threat | What is an angry insider capable of?
When the president of a global industrial association was advised the business entity had been administratively dissolved by the State’s department governing corporate registrations the initial thought was, ‘This is an administrative oversight and a simple fix.’ Then it was discovered that the association’s name had been claimed by an individual with no ties to the organization and registered at an abandoned address. Identity fraud? Not so fast. Risk Confidence Group was contracted to get to the bottom of the questions: Who, how and why? Our investigation uncovered a scheme specifically devised to compromise the association, and it was carried out from the inside. By conducting a strategic deep-dive into the organization’s complex web of relationships with contractors, sub-contractors, employees, and clients, we narrowed the possibilities and uncovered an obscure relationship between an industry outsider and a trusted insider. An inconspicuous but long-simmering insider threat was exposed. Exposure brought clarity and enabled the association president to make informed strategic decisions, confidently present the facts and solutions to the governing Board, and put in place our recommended actions to mitigate future risk.
We worked with: Governing Board, Association President, Members of the Leadership Team, Prime Contractor, Outside Legal Counsel
Harassment | An Executive Team Divided
When a Florida-based organization was faced with allegations of a hostile work environment within the senior staff, the governing Board took the allegations seriously. Risk Confidence Group was called on to investigate the facts and circumstances. Our independent investigation provided the Board with clear and objective visibility into the core issue and identified more complex underlying issues related to organizational structure, communication processes, and competing strategies, all of which affected the work environment. Increased visibility brought clarity to the Board and provided a road map to resolution. Furthermore, the Board showed wisdom and a commitment to maintaining a safe and healthy work environment for all employees.
We worked with: Governing Board and Human Resources
Cyber Intrusion | Business email compromised, manipulated and a million dollars lost
When the CEO and CFO of a manufacturing organization learned more than $1 million in supplier payments were sent to the wrong account, the CEO and CFO believed they had a computer breach. One of their trusted advisors recommended the two executives have a conversation with Risk Confidence Group consultants. After a brief conversation, we assessed the situation was not a computer “breach” in the legal sense, and therefore did not fall under public notification rules. Rather, we assessed the matter was likely a business email compromise that facilitated a theft and fraud scheme. Once hired, relevant computer devices were forensically imaged and analyzed. We determined an accounts payable employee had fallen victim to a phishing email. Having clicked on a phishing email link, the unwitting employee’s credentials were exposed and allowed single sign-in access to accounts payable emails and associated folders by unauthorized users. Moreover, our forensic examiners and investigators uncovered evidence the unauthorized users successfully manipulated the company’s electronic communications system by making changes to email routing, thereby preventing accounts payable from seeing critical emails from suppliers. As part of the scheme, the unauthorized users sent a spoofed email impersonating a frequent customer and instructed a change to the ACH routing information for future payments. Through the Risk Confidence Group network of contacts and technical capability the method of the unauthorized access, manipulation, and fraud were confirmed, and a series of banks were identified where the money quickly flowed in and out of fraudulent accounts. Of note, our engagement report was of significance in seeking coverage under three separate insurance clauses: unauthorized access, intrusion, and fraud.
We worked with: CEO, CFO, Outside Contacts, Outside Legal Counsel