Mercury Advisors

The benefit of experiences is......

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Thu, 16 Apr 2009 11:48:00 +0000

that you can recognise a mistake when you make it again!

"They" also say "Marry in haste, repent at leisure".

The point of all this?

My decision to stop my blog, Corporate Crime Watch, was premature and wrong.

I LOVE this blog, WHAT was I thinking?

Anyway, I hope you are still around or will come back and if you have no idea what I am rambling on about, it was nothing, forget it, please.

And if you are seeing this for the first time check us out at Corporate Crime Watch.

Ever wondered who "They" are?

Developments at Scam Stop

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Thu, 16 Apr 2009 11:22:00 +0000

We have been very busy putting the services and sites in place to be able to fulfil our vision of assisting our members in STOPPING the scams, schemes, bogus job offers, sales frauds, spam and general abuse that plague us every day both online and in the “real” world.

Scam Stop offers its members a confidential advice and resolution service should they ever fall victim to a scam or fraud.

This service is available from the Scam Stop portal, http://scamstop.co.cc.

Scam Stop has a voluntary panel of experts who are prepared to provide assistance in their area of expertise.

They are:

David Alexander http://davidalexander.co.cc of Mercury Advisors who is a social engineering and fraud prevention education expert.

John Dierckx http://www.visualcv.com/johndierckx, of the Arcis Fraud Discovery and Exposure Centre, http://arcisfdec.com/ , who is an internationally recognised expert on all matters relating to fraud, Insurance fraud, computer fraud and the resolution of fraud situations.

Patrick Dacre http://www.linkedin.com/in/inbusiness4good, of Computer Helpers Without Borders, http://www.computerhelpers4good.net, and a member of the ICAN Anti Spam Task Force since 1995 is our computer safety expert and will advise members on any computer safety related issues.

Deborah Berchem http://www.linkedin.com/in/debberchem, of DLB and Associates, http://www.dlbandassociates.com/, who is a Certified Identity Theft Risk Management Specialist and an expert on all matters relating to identity theft.

This group can only grow and flourish through the active participation of all members so we would request that you visit us often make us part of your online life and invite your friends and family, remember together we can do more!

We are committed to adding value to our members by assisting them to navigate the hazards of the online experience and to providing valuable assistance and advice should it ever be required.

Thanks

The Scam Stop Team

My move to Scam Stop

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Mon, 13 Apr 2009 09:32:00 +0000

I am making some personal changes that have come about due to some very exciting developments in my business and professional activities going into the future.

I recently founded Scam Stop with Lynne Thackeray to aggressively address scams and fraud both online and in the "real" world.

This service is clearly timeous and very necessary as the demand for assistance, advice and information has exploded since the formation of Scam Stop.

This has resulted in me having to take a very close look at what I am doing and how and where my efforts can add maximum value to the members of Scam Stop.

In order to make our vision for Scam Stop a reality I will be making some changes.

One of the changes that I will be making is that this blog will be mothballed for the foreseeable future as I cannot devote the time required to do it justice at present.

I will now be writing on a daily basis on scams and fraud on the Scam Stop blog and I would request that you subscribe to that feed at http://feeds2.feedburner.com/ScamStop. You can also subscribe by e mail here.

I am sure that the Scam Stop blog will provide real value with factual and very well researched information on scams and fraud currently prevalent on the Internet and in the "real" world.

I will also be writing on the ARCIS blog as the South African associate of the ARCIS Fraud Discovery and Exposure Centre.

John Dierckx who operates this highly professional service is THE consummate fraud prevention professional and I know that ARCIS will add real value through it's fraud prevention services, information and advice.

Please join me on the ARCIS blog, it is a great resource for entrepreneurs, small and medium sized business owners and anybody with an interest in fraud prevention.

Thank you for your support over the past few months and I hope to see you at Scam Stop and on the ARCIS blog.

DANGEROUS ATM Urban legend!

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Sun, 12 Apr 2009 12:12:00 +0000

I received this message in one of those infamous, mass hysteria, bulk forwarded e mail messages:

In the spite of armed robbery, here is something you may really need.

WHEN A THIEF FORCES YOU TO TAKE MONEY FROM THE ATM, DO NOT ARGUE OR RESIST, YOU MIGHT NOT KNOW WHAT HE OR SHE MIGHT DO
TO YOU.
WHAT YOU SHOULD DO IS TO PUNCH YOUR PIN IN THE REVERSE, I.E IF YOUR PIN IS 1254, YOU PUNCH 4521.
THE MOMENT YOU PUNCH IN THE REVERSE, THE MONEY WILL COME OUT BUT WILL BE STUCK INTO THE MACHINE HALF WAY OUT AND IT
WILL ALERT POLICE WITHOUT THE NOTICE OF THE THIEF.
EVERY ATM HAS IT, IT IS SPECIALLY MADE TO SIGNIFY DANGER AND HELP.
NOT EVERYONE IS AWARE OF THIS.
FORWARD THIS TO ALL YOUR FRIENDS AND THOSE YOU CARE FOR.

Why do I say that it is dangerous?

BECAUSE IT IS FALSE! 100% URBAN LEGEND.

Picture the scene, your granny, mother or whoever desperately entering her PIN in backwards and waiting for the cavalry to arrive to rescue her.

Not going to happen.

That is supposing she CAN enter the thing in backwards in a moment of extreme stress. Most of us have trouble enough remembering our PIN forwards at the best of times!

The thing that cooks my blood is that 30 seconds on Google, or Snopes or About or any number of other sites will tell you that this is crap and dangerous to boot.

Yes, the technology does exist and has done for a long time but it is not in use.

NEWSFLASH!

NOT EVERYTHING YOU READ IN AN E MAIL OR ON THE INTERNET IS TRUE!

I have written about forwarding e mails here. Please read it again.

This e mail IS NOT HARMLESS because it can lull people into a false sense of security thereby exposing them to danger.

Use your common sense, the layout, language use, the use of capitals throughout should alert you to the fact that this is a hoax.

Just ask yourself if FNB would EVER send out information that looks as bad as this one does.

Common sense tells you that this is a hoax even before you check it out.

It may be a well meaning hoax, maybe the person who sent it believes it but this does not reduce the damage that it could cause.

Please do your entire mail list a favour, STOP FORWARDING THE E MAILS and if you really, really think you must, the information is true and of critical importance, here is some advice that will keep you out of trouble:

Check the veracity of the information, as mentioned just by using Google, or Snopes or About.com you can satisfy yourself if the information has a reasonable chance of being true. Invest the few minutes required and save yourself from a lot of potential embarrassment.
Don't fall for the hysterical, urgent, critically important "you must do this now" appeal that all of these things contain (Don't worry the world will not stop and no curse will befall you if you don't forward the message to at least 10 people)
If you decide that you must inform you entire network about the content of the email, here is what to do:
- Copy the message into a new e mail.
- Address it to yourself.
- Put all your other contact's e mail addresses in the BCC field, this will protect your contact's privacy and not display their address to all and sundry. (Remember that your contact's shared their e mail address with YOU, not your entire network, it is only good manners and practice to respect their privacy)

You should NEVER just forward any e mail to your entire network, do this often enough and your contacts will start blocking you as an irritating, brainless, spammer.

And you are not, are you?

Let's stay safe, sensible and be a good, reliable, considerate contact, one who people know that they can rely on.

Play your part in reducing spam.

Don't give your contact to the "address harvesters".

Business Fraud Focus: An essential event!

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Thu, 09 Apr 2009 13:21:00 +0000

This is a fraud prevention event that you cannot afford to miss.

It features a 5 member panel of experts who will provide essential insights into the critical importance of fraud prevention in South Africa that will empower companies in their efforts to survive the deluge of corporate fraud and abuse.

Details of the event follow:

72% of companies* in South Africa have fallen prey to economic crime. Is yours next? (*Price Waterhouse Coopers survey, published October 2007)

As economic conditions worsen, companies are reeling as employees turn to crooking the books to meet their financial obligations. Forensic auditors say white collar crime 'which includes fraud, corruption, expense claim manipulation and fiddling with financial statements is on the increase as the economy slumps.'
- Fin24.com, March 1, 2009

In October 2007, Price Waterhouse Coopers published a frightening survey which showed that South Africa has an economic crime level 30% higher than the global average. The results revealed that as many as 72% of companies in South Africa had fallen prey to economic crime in the two years leading up to 2007 - this is a staggering 30% higher than the 42% global average.

Since then, experts predict a sharp growth in fraud and white collar crime - much of it linked to the worsening economic crisis - as many previously above-the-line employees find themselves having to take risks in order to meet their obligations as a result of what many predict could be the worst depression since the the 1930s.

Can you afford to ignore a growing problem that could easily end up crippling your business?

Attend this exclusive event and be exposed to up-to-the-minute insights, case studies, success stories, best practices and action plans from our expert panel.

Professor Mervyn King
Chairman, Brait and former Judge of the Supreme Court of South Africa

Advocate Vusi Pikoli
Former Head of the National Prosecuting Authority

David Alexander
Former Fraudster and Fraud and Social Engineering Prevention Speaker and Educator

Advocate Steven Powell
Head: Forensics, Edward Nathan Sonnenberg

Leon Louw
Executive Director, The Free Market Foundation of South Africa

ENQUIRIES

Would you like to make an enquiry about the Business Fraud Focus?
Contact James Harvey on T: 011 880 4808 or E: james@frontfoot.co.za

AGENDA
View the detailed Business Fraud Focus Agenda

REGISTER
Attend the Business Fraud Focus Conference

AGENDA

07:15 AM
Breakfast

08:00 AM

Chairperson’s Welcome
Leon Louw
Executive Director, The Free Market Foundation of South Africa

08:15 AM
Reach a New Level of Business Confidence by Combating Corruption through the Latest Best-Practice Corporate Governance Strategies
Professor Mervyn E King S.C.
Chairman, Brait and former Judge of the Supreme Court of South Africa
BA. LLB (Cum Laude) H Dip Tax (Wits), Ph.D (h.c.) in Law (Wits)

09:00 AM
People, Security and Crime: Managing your “People Risk”
The “people” element in fraud prevention, system security and the protection of the assets in an organisation is a subject that is poorly addressed and of critical importance
David Alexander
Former Fraudster and Fraud and Social Engineering Prevention Speaker and Educator

09:45 AM
Fraud and Corruption in the Government
How corruption in the Government really impacts your bottom line
Advocate Vusi Pikoli
Former Head of the National Prosecuting Authority

10:30 AM
Tea Break

10:45 AM

The Key to Fraud Prevention and Combating Corrupt Activities in Your Organisation
Invest in fraud prevention: Companies lose more money investigating fraud than what they would spend on preventing it
Advocate Steven Powell
Head: Forensics, Edward Nathan Sonnenberg

11:30 AM
Does Fraud go up as the Economy Goes Down?
Leon Louw
Executive Director, The Free Market Foundation of South Africa

12:15 PM
Chairperson’s Closing

Terms and Conditions Apply. E&OE.

Official launch of Scam Stop!

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Tue, 31 Mar 2009 07:51:00 +0000

We are very excited and proud to be officially launching the Scam Stop network today.

Scam Stop is is dedicated to STOPPING the scams, schemes, bogus job offers, sales frauds, spam and general abuse that makes our online lives hazardous, stressful and unpleasant.

Scam Stop functions on participation, on sharing information; by warning others of scams you have come across, by freely sharing information we can all be better protected.

We now have our own blog, Scam Stop, where we will post information, insights and advice as it comes to hand.

The blog will provide information and insights from experts on all scam or fraud situations currently doing the rounds. We suggest you visit the blog frequently, subscribe to our RSS feed or subscribe by e mail; the links are on the blog.

Scam Stop offers its members a confidential advice and resolution service should they ever fall victim to a scam or fraud. This service is available from the Scam Stop web site.

Scam Stop has a voluntary panel of experts who are prepared to provide assistance in their area of expertise. They are:

John Dierckx, of the ARCIS Fraud Discovery and Exposure Centre, who is an internationally recognised expert on all matters relating to fraud, Insurance fraud, computer fraud and the resolution of fraud situations.

Patrick Dacre, of Computer Helpers Without Borders, and a member of the ICAN Anti Spam Task Force since 1995 is our computer safety expert and will advise members on any computer safety related issues.

Deborah Berchem, of DLB and Associates, who is a Certified Identity Theft Risk Management Specialist and an expert on all matters relating to identity theft.

We are committed to adding value to our members by assisting them to navigate the hazards of the online experience and to providing valuable assistance and advice should it ever be required.

Join Scam Stop today and put your weight behind our efforts to make the world a bit safer!

Identity Theft Alert

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Mon, 30 Mar 2009 14:32:00 +0000

This just in from Moneyweb.

ID menace moves to mobiles

South African mobile users could be at risk of identity theft due to the details they store on their phones.

Lezette Engelbrecht
30 March 2009 15:40

As cellphones are increasingly used to store, transmit and access sensitive information, South African users are facing a greater threat of ID fraud, a trend already observed in other countries.

A recent UK report revealed four million Britons were leaving themselves vulnerable to identity theft in the event of their phones being stolen.

In a small poll of mobile users at the ITWeb offices, all respondents stored contact numbers, mostly a mix of business and personal, on their phones, and the majority also kept SMSes and photos.

READ THE FULL STORY AT MONEYWEB

Rules of the Universe

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Mon, 30 Mar 2009 13:32:00 +0000

I know that this has nothing whatsoever to do with scams, fraud or crime but it is great list, take it to heart.

Number 18 has been a part of my life for so long I think I own it.....

1. Never, under any circumstances, take a sleeping pill and a laxative on the same night.

2. Don't worry about what people think; they don't do it very often.

3. Going to church doesn't make you a Christian anymore than standing in a garage makes you a car.

4. Artificial intelligence is no match for natural stupidity.

5. Not one shred of evidence supports the notion that life is serious.

6. A person, who is nice to you, but rude to the waiter, is not a nice person. (This is very important. Pay attention! It never fails.)

7. For every action, there is an equal and opposite government program.

8. If you look like your passport picture, you probably need the trip.

9. Bills travel through the mail at twice the speed of checks.

10. A conscience is what hurts when all of your other parts feel so good.

11. Eat well, stay fit, die anyway.

12. Men are from earth. Women are from earth. Deal with it. Embrace your differences. Love each other.

13. No man has ever been shot while doing the dishes.

14. A balanced diet is a cookie in each hand.

15. Middle age is when broadness of the mind and narrowness of the waist change places.

16. Opportunities always look bigger after they have passed.

17. Junk is something you've kept for years and throw away three weeks before you need it.

18. There is always one more imbecile than you counted on.

19. Experience is a wonderful thing. It enables you to recognize a mistake when you make it again.

20. By the time you can make ends meet, they move the ends.

21. Thou shalt not weigh more than thy refrigerator.

22. Someone who thinks logically provides a nice contrast to the real world.

23. It ain't the jeans that make your butt look fat.

24. There is a very fine line between 'hobby' and 'mental illness.'

25. People who want to share their religious views with you almost never want you to share yours with them.

26. You should not confuse your career with your life.

27. Nobody cares if you can't dance well. Just get up and dance.

28. Never lick a steak knife.

29. The most destructive force in the universe is gossip.

30. You will never find anybody who can give you a clear and compelling reason why we observe daylight savings time.

31. You should never say anything to a woman that even remotely suggests that you think she's pregnant unless you can see an actual baby emerging from her at that moment.

32. The one thing that unites all human beings, regardless of age, gender, religion, economic status or ethnic background, is that, deep down inside, we ALL believe that we are above average drivers.

33. Your friends love you anyway.

34. Never be afraid to try something new.

35. Remember that a lone amateur built the Ark. A large group of professionals built the Titanic.

36. How old would you be if you didn't know how old you are?

The right response to a 419 scammer?

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Sun, 29 Mar 2009 10:01:00 +0000

This person is more than a little peeved to be getting ANOTHER 419 (Advance Fee Fraud) solicitation and quite clearly just snapped, lost all control and blasted the scammer:

NOTE: I have removed the person's name in the interests of privacy and please remember that this is a 419 SCAM so don't answer the mail or click on any links. PLEASE.

Here is the original e mail:

From: Jim Siew

To: xxxxxxxxxx@gmail.com

Sent: Wednesday, March 25, 2009 8:58 AM

Subject: Attn; xxxxxxxxxxxx

Dear xxxxxxxxxxxxx,
Please accept my apologies if this mail does not meet your personal values. I am Barrister Jim Siew, the personal attorney to my late Mr Saenz xxxxxxx whom I refer to as my client. Before the U.S /Iraqi war, my client, a business man made a numbered fixed deposit of ten million two hundred thousand United States dollars for 18 calendar months with the bank here in Malaysia. Upon maturity several notices were sent to him, even during the war in 2005, only to find out that him and his family have been killed in a bomb blast that hit their Bagdad home.
After further investigations I discovered that my client did not declare any next of kin in his official papers including the documents of the deposit with the bank. He confided in me the last time he was at my office that no one knows about the deposit except me. Right now, the ten million two hundred thousand United States dollars is lying in the bank and no one will ever come forward to claim it. What bothers me is, according to the banking law here, at the expiration of 5 years; the fund would be confiscated and reverted to the banks treasure as unclaimed deposit.
And right now, the board of the bank have taken a resolution to confiscate the deposit if I as the attorney fail to provide the next of kin/beneficiary to the deposit within 28 working days. Against this back drop, I propose to you that I present you as the beneficiary to the deposit since you are a foreigner and have the same last name as my client so that the proceeds of the deposit be paid to you for both of us to disburse.
MODALITY:
I want you to know that I have planned for the successful execution of this transaction. As the attorney, I will prepare and file all the necessary documents to back you up as the next of kin/beneficiary to the deposit. All I require from you at the stage is for you to provide me with your name and address so that I can commence the proceedings for the release and transfer of the deposit to the account you would provide to the bank. Remember to include your phone number for better communication.
I assure you that there is not risk involved; all would be executed under a legitimate arrangement that would protect us from any breach of the law. And once the deposit is transferred to your nominated account, we would share in the percentage of 60% for me and 40% for you. Should you be interested, send me you name and address to enable me commence action. According to my plans, this would take us less than two weeks once we commence.
I shall provide you with more details when you respond. Hoping to hear from you soon.
Kind regards,
Jim Siew

Then the response, poor old Jim clearly caught our friend on the wrong day!

From: xxxxxxxxxxxxxx

To: Jim Siew

Sent: Saturday, March 28, 2009 6:48 PM

Subject: Re: Attn; xxxxxxxxxxxxx

Dear Mr Jim Siew

It is sick little shits like you that we intend to get off the internet forever. This reeks like a scam at a spitting distance.

How you obtained my email address is of no importance to me at the moment - what is important to me though is that sick little shits like you are around to try and scam innocent people.

But be warned the innocent is hitting back and we may not get you but we sure will get some of you.

Signed

I'm not stupid you dickhead!

Now while a lot of people may be very happy to see this response an unfortunate side effect of replying to these messages in any way at all is that it establishes for them that they have a real, live person at the other end of the address AND one who responds.

This will result in a whole slew of new approaches and quite possibly other spam.

So my advice is that no matter how angry you may be, no matter how tempting it may be to strike back you are far better off just hitting the delete key.

You can contact us at scamstop@mercuryadvisors.co.cc, if you feel you need professional assistance.

Please join our Scam Stop group on Facebook if you want to help rid the web of these predators.

Vengeance is Mine......

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Thu, 29 Jan 2009 19:59:00 +0000

A never acknowledged but nevertheless integral part of our society is the concept of vengeance.

Of payback.

Revenge.

Hurt the one who hurt you as badly and, if possible, worse than he hurt you.

This concept seldom finds public expression.

It is an ugly and asocial behaviour trait.

A person will not admit that he had done something for revenge, for vengeance as this is an ugly, anti social and somehow fundamentally wrong and inherently evil.

The Bible teaches us that God has said “Vengeance is mine….”

So, theoretically at least, we are supposed to leave vengeance, revenge, payback to God.

Why?

Because vengeance et al always, always has unintended consequence.

Having said all of this there is one area of our society where vengeance has a very public, acceptable even honourable face.

It is in our criminal justice system and more particularly in our jails.

We must punish wrongdoers and evil men and women.

Everybody, even the criminals will agree with this.

There are, very definitely people who should be removed from society.

People beyond redemption, people for whom no hope of redemption or rehabilitation exists or ever will exist even in the very best of circumstances.

People who no civilised society can tolerate.

Fundamentally evil people.

But there are also people who stumble into crime for whatever reason; misguided youngsters who fall victim to the drug plague and commit crime to feed their habit; people who are desperate and steal to feed their family.

Our publicly acceptable love affair with vengeance throws all of these people into one system.

They say “Look at the level of crime, these people are animals, treat them like animals.

We have a right to be protected from them….”

And they are half right. They do have a right to be protected from those people who are animals.

But what about those that are not animals, those who have made a mistake?

The one who makes a mistake could be their son or daughter.

What about the uneducated man who cannot get a job but must feed his family?

What about the drug addict who is himself, after all, also a victim of crime?

Once a person hits the jail system he is thrown into the system with no screening, no differentiation of crime, no protection of any sort at all.

He is at the mercy of jail system.

The jail system is worse than you can ever imagine, no matter how many episodes of “Jail Break” you have watched or how many books you have read.

One well known educator working in our jail system describes jail as being “worse than death”.

In jail you die a little every day.

The part of you that makes you a decent normal person dies, piece by piece, every day and you don’t even know it.

For self protection you become hardened, emotionless, and robotic.

Emotion of the sort expressed in normal society does not exist in jail.

Emotion in jail is weakness and weakness in jail is deadly to your survival.

All that is expressed in jail is emotions of violence, revenge against society.

More payback.

People who come into jail as being normal, those who made a mistake are converted into hardened, emotionless individuals with no compassion for any person.

Petty criminals are turned into hardened criminals.

People who have been in jail have no fear of consequence and it is fear of consequence that causes people to adhere to the rules of society.

So our system is designed for revenge not rehabilitation.

The purpose of the systems may seem to be the rehabilitation of offenders but it only serves to provide society with a means to obtain legal, acceptable payback.

This situation has consequences.

Violence breeds violence, revenge breeds more revenge, humiliation breeds the need to humiliate others.

And so on and on and on.

The truly viscous circle.

When a person is eventually release from the caring hands of the system he has turned from a person who may only have made one mistake into a truly hardened, cold hearted criminal.

Well done the system.

When people complain about the crime levels, the degree of violence present in the crimes committed do they realise that it is the system that they designed to combat crime and punish offenders that is responsible for the degree and type of crime we are experiencing?

No, of course not.

This is not possible.

Not possible but true.

This is why we should leave vengeance to God.

We should design a system based on proper intervention and rehabilitation.

We should acknowledge that no man is beyond redemption, beyond rehabilitation.

Just as fairly innocent young men become hardened criminals in jail, so can hardened criminals can be helped with the correct intervention.

The problem is that no programs of intervention exist in our jails.

The system is in crises because of the overcrowded situation, poor staff morale, staff shortages in the critical areas of rehabilitative services and poor pay levels.

The system concentrates on punishment and security and at the end of the day the system produces what it was never designed to produce.

Hardened criminals.

I am sure that this was not the original intention, but as we know, the road to hell is paved with good intentions.

And we are on the road to hell.

Vengeance is mine saith the Lord……………………………………………..

Moving House!!!!!

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Thu, 01 Jan 2009 11:17:00 +0000

I have moved my blog to WordPress.

You can find me at Corporate Crime Watch

http://corporatecrimewatch.wordpress.com/

Please subscribe to my feed at the new address.

I sincerely apologise for any inconvenience this any cause you and trust that you will enjoy your experience of Corporate Crime watch in future.

Thank you.

Doing "whatever it takes" to meet goals

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Wed, 31 Dec 2008 10:07:00 +0000

Are you prepared to do "whatever it takes" to meet goals?

This sounds like the sort of thing that the ambitious, loyal, executive or manger or employee would be EXPECTED to say in today's fast moving, highly competitive world.

Sounds good: "I do whatever it takes to achieve my goals".

The sort of go-getting approach that will put you on the fast road to career or business success.

Or jail.

In a 2007 Oversight Systems Report on Corporate Fraud, 81% of respondents identified pressure to "do whatever it takes" to meet goals as the primary reason for corporate fraud.

In my interactions with clients I have found time and again that they are their own worst enemies when it comes to fraud prevention.

The pressure to perform imposed by shareholders, owners and other stakeholders is huge.

Fact is that a lot of these pressures are self imposed by way of unrealistic budget and forecasts by executives that then have to be met.

The pressure to meet these unrealistic goals is passed down the line to some poor mug who will be willing "do whatever it takes" to meet the performance expectations.

This is normally accompanied by the old executive "blind eye".

"Please don't tell me what you are doing to make the quarterlies look good"

Price fixing, manipulation of figures, false invoicing, whatever it is, in the process of "doing whatever it takes" to achieve our goals.

No one can be surprised when old Joe, under huge pressure from his BOSS, morally confused to start with, does the wrong thing.

We are causing our own problems.

The demon in this picture is the corporate culture that promotes or allows the "do whatever it takes" approach to business.

When a corporate culture of this type combines with our inherent moral confusion can we wonder that fraud and other corporate malfeasance results?

And isn't it just another manifestation of our broader "go gettum", hard charging, culture?

Win at any cost.

Well the cost of "doing whatever it takes" is to high.

Loss of self respect, integrity,reputation and maybe even your freedom.

Don't "do whatever it takes" NO goal is worth it.

Do the RIGHT thing.

Keep your integrity, self respect and reputation intact.

The Power of Self Delusion

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Tue, 30 Dec 2008 15:52:00 +0000

I am often asked at seminars or workshop how people can continue to operate a fraud scheme for a long period of time when they know that people MUST inevitably be hurt.

Self delusion.

Firstly you tell yourself that you can make it work, you will make up the money in some way and no one will lose.

In the cold hard light of day this is an obvious nonsense, you have stolen the money, you have no viable business only a moron would believe that you can magically make something out of nothing.

But you rationalise and delude yourself that the impossible is a certainty, of course you can make it up.

Then you say to yourself that it is only business, not fraud at all, just a creative way of doing business. You convince yourself that "everybody" does business this way.

No they don't, you are a crook.

I spoke to another fraudster in jail on this very subject. We got talking and it came out that he was also in for fraud.

This chap was horrified when he had explained why he was in jail and I said "Oh, you mean you are in for fraud".

"NO, I am NOT a fraudster, I am a businessman who operates in the gray area of business"

Here was a man who had been sentenced for fraud, had appealed all the way to the Supreme Court of Appeals, lost ALL his appeals but still was able to delude himself that he had done nothing wrong.

Such is the power of self delusion.

This man was able to continue with his scheme because he was totally, absolutely 100% convinced that he was doing nothing wrong.

And, of course, he is likely to do it again when he is released because he has convinced himself that he did nothing wrong.

Please don't think this is an isolated extreme example, I have come across it many, many times and it is one of the primary reasons that fraud still flourishes.

If you can continue to convince yourself that you are doing nothing wrong, you will continue with what you are doing.

Do you delude yourself about anything at all? Is this power in you?

Beware you could find yourself on the road to nowhere.

And watch out for self delusion in partners or employees, it is a huge red flag that you must take note of.

Corporate Crime Watch: How to avoid fraud

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Mon, 29 Dec 2008 12:42:00 +0000

Corporate Crime Watch: How to avoid fraud

How to avoid fraud

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Mon, 29 Dec 2008 12:15:00 +0000

Here are some tips on how to avoid fraud.

These tips were published on Moneyweb in October 2008.

Read the article Convicted fraudster on how to avoid fraud

I hope you find the information useful.

Contact me if you require any assistance with fraud prevention.

Moral confusion facilitates fraud

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Mon, 29 Dec 2008 09:48:00 +0000

80% of us suffer from "moral confusion".

80% of us will engage (indulge?) in some form of illegal or unacceptable activity if the motive (need), opportunity and an acceptable rationalisation is present.

We all have our own unique moral code. What we are be prepared to do or not to do has nothing whatsoever to do with whether or not it is illegal.

What we will do depends on our own moral code, we will break a law but will never violate our own moral standards.

It's what YOU think is acceptable that dictates your behaviour, not what the law says is acceptable.

Your moral code is a living thing, it is continually being formed by your world view, the circumstances in your life, what you see, think, feel and experience.

The key question is "What are you prepared to do?"

Would you cheat on your taxes? Take home company assets for personal use? Cheat on your expenses? Inflate your travel claim? "Adjust" company revenue to get better results? Bill clients for hours not worked or work not done?

The list can be endless.

The point is when moral confusion (I set my own standards), motive or need (I need money, my car has broken, my cat is sick), opportunity (I do my own time sheets so I will just bill a few extra hours, who will ever know that I did not actually work the hours) and rationalisation (they pay badly, they don't appreciate me, the boss hates me, everybody does it, I will make it up next month, it's not really illegal) meet fraud results.

Think this through.

What are your moral standards? Do you have motive and opportunity? Can you rationalise?

What will your moral code allow you to do?

A bit about David Alexander

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Sun, 28 Dec 2008 14:38:00 +0000

Want to know a bit more about me?

Why can I claim to be an expert on fraud?

Read about my history on Moneyweb you will see that I am indeed very well qualified to advise you on all matters relating to fraud.

Do you need a Fraud Risk Assessment?

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Sun, 28 Dec 2008 14:07:00 +0000

Are you aware of your company’s fraud risk profile?

Do you know where, when and how you could become a victim of fraud?

Is your company’s Fraud Management Program able to meet the challenges posed by the risk of fraud in your organisation?

If you are not sure of the answer to any of these questions you very definitely need a comprehensive Fraud Risk Assessment.

NOW

I am a recognised fraud expert, with intimate, personal experience of fraud from an insider perspective.

I undertake comprehensive Fraud Risk Assessments that answer all of your fraud concerns.

This includes the review of your current Fraud Management Program, identification of fraud risks including points of maximum vulnerability and the suitability of existing systems and policies.

I then make recommendations for enhanced protection including comprehensive recommendations for implementation in a revised Fraud Management Program.

My expertise and experience will enable you to pinpoint the areas of your business (or your personal investments) where you are most at risk of fraud.

My services are an essential addition to those provided by your normal professional advisors. Your advisors are essential for the well being of your business BUT they cannot protect you from fraud.

You need to be able to think like a fraudster, to be able to anticipate their actions to adequately address fraud protection policies.

Enhance revenue, control costs, reduce risk, increase organisational knowledge AND stay out of the media!

Protect yourself against fraud.

Sex, Greed and Emotion

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Sat, 27 Dec 2008 09:47:00 +0000

My wife has a saying "God gave a man a penis and a brain but only enough blood to use one at a time"

She trots this out at regular intervals whenever a man does something dumb that involves a beautiful young girl and she must be right because this seems to happen with monotonous regularity!

But there are other things that drain your brain of blood making it impossible to think clearly.

Greed and emotion.

These are, in my view, the main reasons why people get defrauded in investment schemes.

Greed and emotion are also the primary reason why people do stupid things in the corporate environment or for that matter anywhere else.

Greed not only involves money. It could be greed for recognition, for promotion, for personal validation, for something to boost a poor self image.

And emotion is a real killer of reasoned decision. Who amongst us can honestly say that we have made a quality decision while under the influence of ANY strong emotion.

Note that these are the three main tools of the fraudster. He will appeal to, or manipulate your emotions, your out of control lust, your greed, to lure you into an untenable situation.

By the time you recover your senses, by the time that your brain once again has enough blood to function, it may be to late.

So take a moment, walk away, take the decision tomorrow when you have thought it through, when you have considered all the consequences and future implications, never decide ANYTHING when you are under the influence of powerful emotions.

Don't ever allow anyone to manipulate your emotions so that you make a dumb decision.

The consequences can be fatal.

Join me at Economic Crime Experts

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Tue, 23 Dec 2008 13:38:00 +0000

Fraud protection: Where to from here?

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Mon, 22 Dec 2008 09:00:00 +0000

Tradionally we have relied upon Accountants, Auditors, Risk Managers and Regulators to protect us from fraud.

That's worked really well hasn't it?

The problem with all the protection is that we trust them to protect us and they can't.

And the more "protection" we have in place the less we think for ourselves, the less we are worried by exposure because we have the very best "professional' protection in place.

Problem is these people cannot protect you because they do not think like a fraudster, they are reactive, not proactive, they can find and solve problems, never prevent them.

The answer is self reliance.

Educate yourself, ask questions, understand the risk, apply common sense and sound judgement.

And you need professional assistance; you need to employ a fraud prevention professional who understands fraud from the inside, who has personal experience of fraud and who understands how fraudsters think, act and operate.

You need me.

SAfm Market Update 24/10/08 - David Alexander Convicted Fraudster

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Sun, 21 Dec 2008 06:38:00 +0000

The pot calling the kettle black

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Thu, 18 Dec 2008 15:15:00 +0000

I am gob-smacked, rendered prostrate by the audacity of the family and estate of Mr Charles Ponzi, the first man to operate a large pyramid or rob Peter to pay Paul scheme.

They are suing Bernie Madoff, the Federal Regulators, the media in general and anyone else they can think of to stop them referring to the fraud operated by Bernie Madoff as a Ponzi Scheme.

Impinges on his legacy, his reputation and so on the family says. They don't want the family name associated with a crook.

Unbelievable.

So what, exactly was Mr Charles Ponzi then?

Enlighten me PLEASE!

Read the full story from The Huffington Post and please join me at The Fraud News Network for all the latest news on fraud and economic crime.

My misguided Indian friend.......

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Thu, 18 Dec 2008 13:14:00 +0000

I was engaged in a discussion on one of the clubs I belong to on Ecademy today about, you guessed it, Bernie Madoff.

One of the other members taking part was from India. He had some very interesting points to make:

Regulation was to blame, the US was not as well regulated as India, it would never happen in India and so on.

While I agree that it appears that regulation or lack thereof did play a large part I don't think that any other country has better regulation than the US.

And, as you can always say for the USA, they are taking very quick, public action to correct the situation

and they are replacing the head of the SEC.

Never happen in India, I wonder.

It is a little disturbing that a very well qualified man, a CPA etc, can display hubris of this magnitude.

That is what got us in the dung in the first place.

Wake up man, it happens everywhere, even India.

If Bernie the Bold had decent Auditors it would never have happened.

What are they smoking in India?

What about the failure of the auditors of the feeder fund and investors? Do they not have a responsibility to look after their clients interests?

ALL the auditors screwed up, every single one of them and anyway you can NEVER rely on an auditor to prevent fraud, at best they find out what has already happened so you can stop it happening again and you can fix the problem.

Auditors are not proactive they are reactive, it goes with the job description.

The auditors of all the investors are in the dwang in any event, they are going to be taken to the cleaners. Sued to death.

And anyway you only have to look at ONE other current story, that of Mr Stein Bagger, CEO of the IT Factory in Denmark to see the absolute nonsense in the contention that decent auditors would have prevented the fraud.

Our friend Stein was audited by Deloitte and KPMG, he had a loan from the largest Danish Bank (a State bank), was a very close partner of IBM AND he was made the Ernst and Young's "Entrepreneur of the Year' on the day he fled the country.

Now there is a story to bring tears to your eyes if you are the emotional type.

One of the quotes of the year comes from Ernst and Young who said:

"We feel deceived," said Søren Strøm, head of Ernst & Young's "Entrepreneur of the Year" program, in a statement. The accounting firm, he added, is "unable to understand the last few days' developments."

Unable to understand?

That an easy one Soren, he took the money and bolted!

I would add embarrased and ashamed to the list if I was them. Do they know about due diligence in Denmark?

What is it that Ernst and Young does again?

We must always remember that it OUR money that money managers and funds invest. We have the responsibility to ensure that our professional advisors do what they are supposed to do.

It's our money after all.

Then my friend from India closed with a racist remark about "the Jews who manage The Swiss Banks"

Very regrettable but unfortunately common, particularly with this story, have a look at "Antisemites feast on Madoff misery"

No, the Jews are NOT responsible albeit Mr Madoff is a Jew, the Jews were in fact the major individual losers.

This attitude sickens me, I find it personally repugnant, and you should be ashamed of yourself.

As long as we indulge in hubris, naivety, blame laying, greed, justification, ego and anti-Semitic diatribes we will continue to be taken in by fraud schemes.

We need to take responsibility for our own investments, do the homework and rely on "them" to look after us.

Bernie Madoff': Keeping it in the Family

noreply@blogger.com (David Alexander - Social Engineering Specialist) — Wed, 17 Dec 2008 15:40:00 +0000

Old Bernie gives the phrase "Keep it in the family" a whole new meaning!

The New York Times, reported today on the emerging ties between members of Madoff's family and SEC compliance inspectors who had done (or not done?) several investigations into Madoff's fund several years ago.

Turns out old Bernie's niece, Shana, is married to the ex Deputy Director of the SEC who was in charge of compliance and lead several investigations into Bernie's funds.

and Shana is?

Compliance Attorney for Uncle Bernie.

And Daddy Roger is?

General Council for brother Bernie.

And the sons were both senior officers for Daddy Bernie.

Neat hey?

Amazing the coincidences that happen.

Of course the ex SEC lawyer, Mr Eric Swanson, says that his relationship with Shana started long after the probe into Daddy's funds.

So what, still sounds like sleeping with the enemy to me.

Now my credibility is taking severe strain.

I wrote in a previous post, Bernie Madoff: Could he have acted alone? that I didn't think that the family was involved.

Maybe I was wrong.

But then again maybe I was right.

I have learned to my cost, both in my personal and professional life, NEVER to judge until the facts are known and the truth emerges, as it will in this case.

As Sherlock Holmes said "When you exclude the impossible, whatever is left, no matter how improbable, must be the truth.

We should wait for all the facts to emerge before we judge anybody, including Bernie Madoff.

But until then we are free to speculate.........