Frauds Aimed At Businesses Can Take Many Forms

As a professional fraud investigator, I can say that I have seen all kinds of frauds throughout my career. Likewise, many people have tried to commit fraud against me, especially while eagerly traveling the world. So I would consider myself to be pretty astute in these matters.  But even the astute can be challenged.

As a business owner and a due diligence specialist, I know that we have to trust the people we are doing business with …. to some extent.

We trust that they are telling us the truth, that they really do want our services and / or products and they are willing to pay for them.

And if we have aptly employed our due diligence procedures, then we have already vetted our potential new client to verify their legitimacy, purpose and perhaps even their credit history. But how do we protect ourselves when by all accounts, it looks like we entering into a legitimate relationship with a new client?

A few years ago, we were approached by a European investigation firm requesting our services in Canada. According to them, they were working on a multi-jurisdictional fraud case and needed an investigator in Canada to assist them.   Prior to commencing work with them, the company was thoroughly vetted and everything check out. Of course what we didn’t know then, was that this company had been set up and licensed as an investigation agency by former law enforcement personnel (or individuals impersonating them) for the sole purpose of committing fraud.

In order to commence this complex investigation, a substantial retainer was requested and received.   The money came and was quickly deposited however within a few days, the investigation had been cancelled. The client then requested a partial refund as per our contract.

Weeks of back and forth discussions initiating the contract was followed by a short two sentence email cancelling it. Red flag # 1.

We agreed to refund the money once the cheque had cleared. For those of you that don’t know, a cheque has not cleared just because funds have been made available in your bank account. It can take anywhere from 2-4 weeks for a cheque to clear through the international banking system.

Shortly after advising the client of this, we were told that the investigation was back on. Only now, the investigation budget had doubled and they wanted to send an investigator to Canada to assist us. Red flags # 2 and # 3.

For the investigator to receive an immigration visa, he needed an engagement contract. Once in Canada, he would pay the full amount of the investigation up front and in cash. Red flags # 4. By now, it was clear what was going on.

Lucky for us, we had established fraud prevention procedures to follow.

But how many companies wait the full clearance period before issuing refunds? Or get caught entering into engagement contacts that are then used to secure immigration visas? Or worse?

Companies are at risk of being defrauded just by being open for business. Even with the best due diligence program in place, fraud can happen. So don’t stop there. Protect your business from unintended harm by developing and implementing a comprehensive set of fraud prevention policies.

Auto body shop owner conned out of life savings. Man surrendered $60,000 in bogus car-shipping business deal, police say.

A recent article published by the Toronto Star highlights the need for doing due diligence prior to entering into new business deals or transactions!!!  View Article.

2014 M&A AWARD WINNER – DUE DILIGENCE FIRM OF THE YEAR: CANADA

M&A 2014 AwardsI am pleased to announce that ENVIRO-LYNX INVESTIGATIONS has just been named a 2014 M&A Award Winner for DUE DILIGENCE FIRM OF THE YEAR: CANADA by Acquisition International.

Enviro-Lynx Investigation also won the M&A Award for Fraud Investigator of the Year: Canada in 2012 AND 2013.

For more information on this award, you can visit the Acquisition International’s M&A Awards site. You can also view more information and regular updates on our Facebook page http://www.facebook.com/EnviroLynxInvestigations.

Failure to screen candidates properly leads to expensive mistakes!

Savvy consumers don’t buy a car or a house without first taking a good look at what we are buying.  Likewise, employers shouldn’t be hiring employees or employing third parties (individuals or companies) without first understanding who they are and what their background is.

We offer a number of screening services as well as background and due diligence programs that will help you reduce your risk and improve your decision making process by providing you with the most accurate, up-to-date information possible.

2013 FRAUD INVESTIGATOR OF THE YEAR – CANADA

Enviro-Lynx Investigation has just won the 2013 FRAUD INVESTIGATOR OF THE YEAR – CANADA award by Acquisition International –  the sponsors of the M&A Awards!  Enviro-Lynx Investigation has previously won this award in 2012.

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For more information, you can visit Acquisition International website for the list of the 2013 Award Winners at: http://viewer.zmags.com/publication/a87cf23c#/a87cf23c/1

When to enlist the help of a web monitoring service?

Do you know what people are saying about your company?  How about your brands, products, services?

A positive online reputation is key to a company’s, brand, service or products success!  As part of our web monitoring services, we conduct regular scans of the web and the deep web for any mention of an individual, company, product, brand, personal identifies, numbers, addresses etc.  By doing so, we are able to identify positive and negative information at has been recently uploaded to the internet.  Knowing when, where and how you are mentioned on the internet allows you to effectively manage and protect your online reputation.

Web monitoring is also a very useful tool in identifying employee morale, customer opinions, consumer support, information trends, activity trends, and competitive intelligence such as competitor information, corporate changes and new products .

Let our web monitoring service help you discover all of the information you need to know!