Stigmata

The stigma of whistleblowing hits hard.  As a young accountant in school I always knew that there were enormous responsibilities pertaining to the security of money.  I was not prepared to understand that this also included information.  Thejournal entries and financial statements were the substance of the field but with the passage of Sarbanes Oxley and it’s brainstorming requirement, secure information could drive the brainstorming in the right direction.  As far as my fraud studies go, I have read some books on the topic to learn that fraud not only hits hard at home, that it can come from the most unexpected sources.  Individuals that have been with a company for 3 years and are impeccable perpetrate frauds that bankrupt companies before it is too late.  That can mean a less favorable future for those in the small town that are employed by the company.  Now, everything has changed in the future for the family.  It hits home unpredictably in such a manner.  One reason anonymity in whistle blowing is so important is the ability to minimize stigma associated with the act of whistleblowing, making a more responsible and educated community along with security for a whistleblower that emerge as a whole effectively and in order.  So remember to say thanks to your fraud fighters in your community and give them your support because it is greatly appreciated and welcome.  

Further on the topic is the need to make sure whistle blowers have support.  Forfeiting a career, in my opinion is not an attractive result to blowing the whistle.  All this does is make the whistle blower more vulnerable by potentially placing them in poverty and open to attacks from groups that may be angry about the exposure of the crime in question.  So... if you are aware of a whistle blower that can use a hand, be a hero too and help them out.  They will appreciate it.

The Double F

The Double F

Fraud and fiduciary.  It takes a terrible toll on people and is like being blindsided.  When breaching a fiduciary agreement you breach a bond of trust.  Social fraud can be a excellent way to subordinate groups of individuals to cooperate with your fiduciary breach via group think, making the problem a community dilemma.  With social fraud, as stated in my last blog, it leads to a circumvention of internal controls.  This is subordination in it’s principle form and has it’s impact in the fiduciary breach by rotting everything to the core.  Back to the community in a dilemma.  Fiduciary problems in the community can upset delicate balances and become virile arguments that destroy lives and ruin reputations.  Rely on your communities support network to help guide you through any fallout and be on guard and remain vigilant for the signs that lead to corruption in the future!!

Let's Be Social!!

The social side of fraud.  Very prevalent and you are exposed to it.  Ever hear of group think? In High School you can call it a click.  Groups of individuals who all have their own perspective as to what reality is like or should be like.  Their influence can be powerful and shape lives, not for the best.  Functional bonds can be a manner in which social functions perpetrate.  The perpetrator(s) act lie predators and seek out other people to join be finding areas they can exploit that may solve peer pressure problems.  Organizational –function serving is a fraud that exists to increase the profitability of the company.  From a academic perspective, I have seen it with executive officers and board members shooting for stock bonuses or golden parachutes and they are perpetrating in order to achieve their goals to make themselves rich.  Affective bonds can cause terrible problems.  An example of it is the swindle that “this is for us”  and one party in the conversation is manipulated and expended in order for the perpetrator to accomplish his or her goal.  Awareness is the best prevention tool according to Murphy and Free (2007) and brainstorming can be a prevention method. Groups of individuals can become powerful and overcome internal controls and perpetrate, so be cautious with whom is selected for brainstorming in order to avoid the fraudsters from entrenching themselves once they find out any brainstorming plans. 

Murphey, Pamela R., Free, Clinton.  The Social side of Fraud: Collusion and Culture.  Fraud Magazine, 30(1), 64-68.   

Coming Soon!!

I have decided to bring my fraud awareness blog to Blogger.  New content to come.