Blog

<blockquote>In the age of digital communication, social media has become a powerful tool for disseminating information, connecting with others, and even making financial decisions. However, as recent events have shown, the advice and trends that circulate on social media can often lead to dire consequences for those who take it at face value. The recent Chase banking glitch, where individuals fell into the trap of banking bad checks and subsequently withdrawing cash, serves as a stark reminder of the dangers of relying on social media for financial guidance.</blockquote>The Chase Banking Glitch: A Costly Mistake In a bizarre turn of events, Chase Bank recently faced a surge in fraudulent check activity, with individuals depositing checks that were later found to be fraudulent. Thanks to social media, word spread quickly about this "opportunity," leading many to deposit these checks and withdraw cash before the checks could clear. However, when the checks inevitably bounced, Chase was quick to label the activity as "check fraud, plain and simple."The individuals involved suddenly found themselves in serious trouble, with their accounts overdrawn and the bank holding them responsible for the fraudulent activity. The situation highlights a critical issue: misinformation and bad advice on social media can lead to significant financial harm. What may have seemed like a harmless tip or a quick way to make some money turned out to be a disastrous decision for those who took the bait.Social Media: A Breeding Ground for Financial Scams The Chase banking glitch is not an isolated incident. Social media has long been a breeding ground for various financial scams, including Ponzi schemes and pump-and-dump schemes, which prey on the naivety and greed of unsuspecting individuals.Ponzi Schemes: These schemes promise high returns with little or no risk, luring in investors who then recruit others to join. The initial investors are paid returns from the new investors' money, rather than from profit earned by the operation of a legitimate business. As the scheme grows, it becomes unsustainable, eventually collapsing and leaving the majority of participants with significant losses. Social media platforms, with their vast reach and ability to quickly spread information, have become fertile ground for these scams. Fraudsters use persuasive language and flashy lifestyles to convince people to invest, often playing on emotions and the fear of missing out (FOMO).Pump-and-Dump Schemes: In these schemes, fraudsters artificially inflate the price of a stock by spreading misleading information, often through social media channels. Once the stock price has been pumped up, the fraudsters sell their shares at the inflated price, leaving other investors holding worthless or devalued stocks when the price inevitably crashes. This manipulation is illegal and can lead to severe financial losses for those who fall victim to the hype.The Dangers of "Crowdsourced" Investment Advice The allure of social media is that it offers a sense of community and shared knowledge. However, when it comes to investments, relying on crowdsourced advice can be extremely risky. Unlike professional financial advisors, who are regulated and have a fiduciary duty to act in their clients' best interests, social media influencers and self-proclaimed experts have no such obligations. Their advice may be based on incomplete information, personal biases, or even malicious intent.The democratization of investment advice through social media platforms has made it easier for misinformation to spread. With the rise of "finfluencers" who offer investment tips and strategies to their followers, many individuals may be swayed by the promise of quick gains without fully understanding the risks involved.How to Protect Yourself To avoid falling victim to bad advice on social media, it’s essential to approach all financial information with a healthy dose of skepticism. Here are a few key steps to protect yourself:Do Your Own Research: Before making any investment decision, take the time to research the opportunity thoroughly. Verify the information from multiple reputable sources and consult with a certified financial advisor if necessary. Be Wary of "Too Good to Be True" Offers: If an investment opportunity promises guaranteed returns with little or no risk, it’s likely a scam. High returns are usually associated with high risks. Understand the Risks: Every investment comes with risks. Ensure you understand what those risks are before you commit your money. Avoid FOMO: The fear of missing out can drive people to make hasty and ill-informed decisions. Remember that there will always be new opportunities, and it's better to miss out on one than to rush into a bad one. Report Suspicious Activity: If you come across potential scams or fraudulent schemes on social media, report them to the platform and the appropriate authorities. Social media can be a powerful tool for learning and connecting with others, but when it comes to investments, it’s important to tread carefully. The Chase banking glitch serves as a cautionary tale about the dangers of acting on bad advice from social media. By staying informed, doing your research, and approaching all opportunities with caution, you can protect yourself from falling victim to financial scams and bad investment decisions. Remember, when in doubt, it's always best to consult with a professional who has your best interests at heart.

The Perils of Social Media Investment Advice: Lessons from the Chase Banking Glitch

Business people celebrating success in an office

(Names have been changed to protect the guilty)<blockquote><h3>When we think of criminals we think we’d know one if we met one. But usually, this is not the case. How many times have you read, after someone has been arrested for even the most heinous crime, that so-and-so was such a nice guy no-one could have suspected him capable of welching on a parking ticket, let alone committing mass murder? “But he seemed like such a nice guy! It’s hard to believe he could have done something like this.” is the common refrain.</h3></blockquote>That’s the thing about criminals. We never suspect them. If we did, we’d be a lot more careful. But time after time the fraudster turns out to be the nicest guy in the room.Take the case of Calvin Holmes (not his real name). Calvin applied for the job of financial manager at TravelMate, a mid-size travel firm and a subsidiary of a very well-known holding company. To secure the position Calvin needed a university degree and an honours degree and was asked at his interview to provide proof of both. Although he possessed neither, he was happy to oblige with the requestA few days later, the MD, who had conducted the interview and was making the appointment, received confirmation via an e-mail purporting to be from a respected university, confirming Calvin’s academic “credentials”, and he got the job as head of the firm’s finance department.After just one month, using a fake email account that appeared to come from the MD, Calvin instructed the department to award him a nice increase. His salary went from $5,000 to $7,500 per month. But he didn’t stop there. Using this same method, his salary rocketed to $15,000 per month in just one year.But of course, like all good fraudsters, Calvin couldn’t get enough, so he also received bonuses, all awarded by the “MD”, to a total $45,000! And it didn’t stop there.Calvin convinced the MD to leave him with signed, blank cheques every month to “expedite payments” when she was away. He then paid these cheques against invoices generated by his own “company”. With this method, he increased his illicit earnings by $18,000 each month!Calvin’s activities were finally uncovered when he used a company credit card on a trip to London. But this card was very rarely used, and, in fact, the MD had instructed Calvin to cancel it several months prior to his trip, which of course never happened. The bank queried the sudden large expenditure on the card with the MD. Calvin then attempted to alter a bank statement using his computer. But the books still didn’t add up and it was “game over” for the likeable fraudster.The question you may be asking yourself is: “But how did he get away with it for so long - surely someone must have suspected something?”The company’s employees worked in an atmosphere of fear, and hardly ever queried the MD’s instructions. Calvin ruled his own department the same way, but he also took the financial department people for lunches on Friday afternoons and socialised with them, always coming across as extremely likeable. The nicest guy in the room. And while everyone thought he was as honest as the day is long, they knew better than to question his judgment or his instructions.Calvin was sentenced to four years in jail, and ordered to pay restitution to the company. The company had not suspected a thing. Had they conducted an expense review, Calvins expenses would have stood out. Using independent consultants to perform this type of review removes the potential that the person conducting the investigation will under state the findings due to a fear of retaliation.If you believe your company could be doing better, you might just be right, and the poor performance may be the result of one individual. If you would like a free first consultation on the benefits of a forensic audit of expenses or the benefits of a fraud risk assessment please contact Forensic Restitution - www.forensicrestitution.com - Fraud hurts, we make it better!

The Nicest Guy In The Room

Sponsored by: Jeffrey Gregory Of Desjardins Financial Security Investments Inc.<blockquote>Join us for an engaging two-hour webinar on Tuesday, July 30, 2024, from 7:00-9:00 p.m. EST, where we will delve into the critical issue of AI and crypto fraud. </blockquote>We often hear about the rapid advancements in technology and how they bring both opportunities and challenges. One of the significant challenges we face today is the rise of fraud in the AI and cryptocurrency sectors. As professionals, understanding these threats and learning how to counteract them is essential. Session Highlights: Cybersecurity expert Dave Oswald from Forensic Restitution will share insights into the complex world of AI and crypto fraud. In this session, you will learn about:1. The Key Threats: Understand the major types of AI and crypto fraud that are prevalent today. 2. Detection Techniques: Learn about the latest technologies and methods used to detect and prevent fraud. 3. Regulatory Compliance: Get an overview of the regulatory landscape in Canada and how to ensure compliance. 4. Case Studies: Review real-world examples of AI and crypto fraud cases and the lessons learned. 5. Building a Defense: Strategies for building robust defense mechanisms against these frauds. 6. Future Trends: Insight into the future of AI and crypto fraud and how to stay ahead of potential threats. Speaker: Dave Oswald, a renowned expert in forensic investigation, is known for his expertise in tackling complex fraud cases. His strategies have helped numerous organizations safeguard millions of dollars. Dave has led workshops, training sessions, and interactive keynotes at leading organizations and educational institutions across the country. Registration: <a data-mce-href="https://us02web.zoom.us/meeting/register/tZ0lf--vrT4vGNHLfCj1r206DPJ0vL33IkP5#/registration" href="https://us02web.zoom.us/meeting/register/tZ0lf--vrT4vGNHLfCj1r206DPJ0vL33IkP5#/registration">Addressing AI and Crypto Fraud - Sponsored by Jeffrey Gregory</a> Testimonials: "Hi Paul, I appreciate all the webinar events that you organize – I have been successful in learning lots of information and earning CPD too. Also, I appreciate the networking opportunities. Thank you." - Lisa Blackburn "The talks have helped me create more informed plans regarding my financial plans! Very informative!"- Rahi Tajzadeh"Great workshop, very valuable and inspiring. I would like to attend the workshop again."- Chiedozie Megwa"Each event is fantastic! I learn something new every time that will help me in my professional and personal life. I hope to be a regular in TheGAAP.net events." - Mrigank Kabra"The workshop was very informative and well organized, covering the relevant topics and providing the right amount of content. The audience had adequate opportunity to ask questions to the speaker and interact with the fellow attendees. It was a workshop worth the time and cost. Look forward to attending the future workshops." - Kul Makkar, Director ITA Canada Organizers: Paul Calleri, Founder of TheGAAP.net and the CPA Toronto Accounting Group Larry Cooper, Founder of TFN (The Finance Network)

TheGAAP.net   Presents: Addressing AI and Crypto Fraud

Preparing Accurate Business Interruption Claims After the Toronto FloodsIn the wake of the recent catastrophic floods in Toronto, which saw over 100mm of rainfall causing extensive damage, businesses across the city are facing significant disruptions. As a business owner, your primary focus right now is likely on recovery and ensuring the continuity of your operations. However, an essential aspect of this recovery process is preparing a thorough and accurate business interruption claim.Business interruption insurance is designed to help you navigate the financial setbacks caused by unexpected events, such as these devastating floods. However, preparing a successful claim requires meticulous documentation and a clear understanding of the process. Here's how you can ensure your claim is comprehensive and accurately reflects your losses:1. Document Everything Immediately start documenting the impact of the floods on your business. This includes:Photographs and videos of physical damage. Detailed records of inventory losses. Receipts for any emergency repairs or temporary measures taken to mitigate damage. Communication logs with suppliers, customers, and employees affected by the disruption. 2. Calculate Your Losses Work closely with your accountant to calculate the financial impact of the interruption. This should include:Revenue lost during the period of disruption. Additional expenses incurred to continue operations (e.g., renting temporary office space). Costs associated with cleanup and restoration. 3. Review Your Policy Understand the specifics of your business interruption insurance policy. Key aspects to review include:Coverage limits and exclusions. The policy's waiting period before coverage kicks in. Documentation requirements for filing a claim. 4. Consult a Forensic Accountant A forensic accountant can be invaluable in preparing your claim. They can:Provide an objective assessment of your losses. Help compile the necessary documentation. Ensure that your claim is presented in a way that aligns with insurance requirements. 5. Submit Your Claim Promptly Time is of the essence. Submit your claim as soon as possible to avoid delays. Make sure all required documents are included and that the claim is comprehensive and well-organized.6. Follow Up Stay in regular contact with your insurance provider to track the progress of your claim. Be prepared to provide additional information if requested and address any questions promptly.At Forensic Restitution, we specialize in assisting businesses with the preparation of business interruption claims. Our experienced team understands the complexities involved and can help you navigate the process with precision. We ensure that your claim is accurately prepared and submitted, maximizing your chances of a swift and fair settlement.Contact Us If your business has been affected by the recent Toronto floods, don’t hesitate to reach out. We are here to support you through every step of the claims process, helping you get back on your feet as quickly as possible.Forensic Restitution Expert Assistance in Business Interruption Claims Phone: 416 525 1510| Email: info@forensicrestitution.comRemember, accurate and thorough claim preparation is crucial to your recovery. Let us help you navigate this challenging time with expertise and care.

Business Interruption Claims After the Toronto Floods

person using laptop on white wooden table

How about: "Unmasking the Shadows: An In-Depth Look at Internal Theft Investigations"?

Mary from Savvy Seniors speaks with forensic investigator Dave Oswald about how to avoid fraud.<figure id="figure-d13sk2vkrlx9jsmyl" class=""><iframe id="d13sk2vkrlx9jsmyl" src="https://www.youtube.com/embed/UlyC9IisbN4" class="w-full bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9;" allowfullscreen="" data-url="https://www.youtube.com/watch?v=UlyC9IisbN4&amp;list=PLBymkruQ_KwzxRV6W3xqJFtLPo9Tib-pV&amp;index=13" data-corners="default" data-fullwidth="false" data-mce-src="https://www.youtube.com/embed/UlyC9IisbN4" data-mce-style="aspect-ratio: 16/9;"></iframe></figure><figure id="figure-7cpcxl2sstlx9js9pk" class=""><iframe id="7cpcxl2sstlx9js9pk" src="https://www.youtube.com/embed/Y8M3umpsKhY" class="w-full bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9;" allowfullscreen="" data-url="https://www.youtube.com/watch?v=Y8M3umpsKhY&amp;list=PLBymkruQ_KwzxRV6W3xqJFtLPo9Tib-pV&amp;index=12" data-corners="default" data-fullwidth="false" data-mce-src="https://www.youtube.com/embed/Y8M3umpsKhY" data-mce-style="aspect-ratio: 16/9;"></iframe></figure><figure id="figure-azn3468juolx9js1rl" class=""><iframe id="azn3468juolx9js1rl" src="https://www.youtube.com/embed/Wn8SvCHyzbw" class="w-full bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9;" allowfullscreen="" data-url="https://www.youtube.com/watch?v=Wn8SvCHyzbw&amp;list=PLBymkruQ_KwzxRV6W3xqJFtLPo9Tib-pV&amp;index=11&amp;t=353s" data-corners="default" data-fullwidth="false" data-mce-src="https://www.youtube.com/embed/Wn8SvCHyzbw" data-mce-style="aspect-ratio: 16/9;"></iframe></figure>

Latest Forensic Insights

The Perils of Social Media Investment Advice: Lessons fro...

The Nicest Guy In The Room

TheGAAP.net Presents: Addressing AI and Crypto Fraud

Business Interruption Claims After the Toronto Floods

How about: "Unmasking the Shadows: An In-Depth Look at In...

Savvy Seniors with Dave Oswald