Investigation

5 most scandalous fraud cases of 2018

The ACFE has found that large, noteworthy fraud cases — like Enron or Bernie Madoff — will live on in infamy and can provide valuable lessons for fraud fighters. That’s why we, along with input from our members, have selected these five stories of 2018 as the most scandalous frauds of 2018. We chose the stories based on money lost, lives impacted and relevance to the anti-fraud profession.

Why don't auditors find fraud?

Organizations continue to be at risk because their auditors and accountants often don’t know about, or continuously look for, fraud red flags. And they don’t apply additional audit procedures to offer reasonable assurance that financial statements are free of misstatements due to fraud. Let’s help them and engage everybody in this good fight.

Did ‘psychic’ Maria Duval make a deal with the devil?

Burgeoning fraud against consumers is affecting millions. Two young investigative journalists at CNN recently reported an immense global mail fraud scheme targeting senior citizens.

Journalist finds strength in numbers to keep truth alive

Pulitzer Prize-winning investigative journalist Bastian Obermayer isn’t afraid of investigating the global elite. He’s spent his career digging into the uncomfortable truths of Nazi war criminals, abusive Catholic priests and crooked politicians. Obermayer set into motion the largest collaborative event in the history of journalism when he initiated the Panama Papers. He’ll receive the ACFE’s Guardian Award and speak at the 30th Annual ACFE Global Fraud Conference in Austin, Texas, June 23-28.

Unified truth seekers expose fraud and corruption

The initial exchange of the Panama Papers began at Bastian Obermayer’s parents’ home in Germany. His wife and kids were sick with stomach bugs, and he was graciously cleaning up one mess after another. In his words, it was a “really bad day.” He couldn’t know that one strange email would change his life, his newspaper and investigative journalism forever. The subject line read, “Interested in data?”

Old-school tenacity

Digital analysis and search apps are invaluable. But nuanced interviewing, with an eye to discerning audiences, can yield solid evidence.

Spoofed emails enable purchase-order fraud

This case involved a Nigerian crime ring that stole Apple computers and devices by impersonating U.S. defense officials. Make sure purchase orders pass the “smell test,” and call agencies to confirm.

Ripple effects of fraud

We often focus on a fraud’s perpetrator, the conditions that allowed the fraud, plus the victim business and its owners. In this case, the authors cover the bases but also discuss the forgotten aspect: how the fraud affects so many more who live in the concentric circles around the fraudster.

Victimization of the Massachusetts State Police

If the oldest, largest and arguably most prestigious law enforcement agency in New England can become a victim of multiple frauds, what does that say about your organization’s exposure?

Dirty contracts

Contract and procurement fraud, collusion and corruption can rob profits from victims. Bid riggers conspire to eliminate fair and open competition and allow some to monopolize industries. Here’s some help in detecting common contract and procurement fraud schemes, and improving the integrity of the contract-award process.

Jewelry magnate on the run after fraud exposed

Nirav Modi supposedly was one of the richest men in India. He came from a respected family and had close connections to the government. Could he really have pulled off a huge banking fraud to finance his business ventures?

Dixon's quiet hero

The ACFE’s 2018 Sentinel Award recipient had no intention of changing her orderly life as the city clerk of Dixon, Illinois. And then she found a secret account in city ledgers that led to discovery of Comptroller Rita Crundwell’s astounding $53.7 million fraud. Kathe Swanson’s life will be forever marked by her simple heroic decision.