STUDY CASE

THE ACID TEST

THE POWER OF ONE

Story of how fraud triangle analytics helped to detect top executive dishonest act and stopped unmeasurable financial losses.

STUDY CASE

THE ACID TEST

THE POWER OF ONE

Story of how fraud triangle analytics helped to detect top executive dishonest act and stopped unmeasurable financial losses.

PROFILE OF THE PERPETRATOR

Joe, top executive a role model to follow

  • TRAJECTORY

    Joe started as a clerk, worked his way up to human resources, treasury, and is now the VP of Procurement

  • EDUCATION

    As a valued employee, the company paid for his degree, MBA and complementary courses

  • CONFIDENCE

    Joe was responsible for the implementation of new segments expanding the business

THE RED FLAGS STARTED

Red flags were triggered by Joe’s relaxed control of processes and chat of his luxurious cars and real estate properties.

THE FRAUD EXPLORER

The Fraud Explorer identified red flags regarding opportunity, justification, and rationalization

ROBBERY RUMORS

Using the red flags, the audit group was able to identify misappropriation of assets

PROPENSION TO FRAUD

Percentage of population to commit fraud in a survival situation

10 %

ALWAYS
LOOKING FOR
FRAUD

I only took
advantage of
the opportunity

80 %

WILL COMMIT FRAUD
JUSTIFYING
CIRCUMSTANCES

I need to keep
my life style,
I found a solution

10 %

WILL NEVER
COMMIT
FRAUD

I like a life
of honesty
and truth

WHAT WAS FOUND ?

Natural language dialogue and AI combined

90.000

behaviors

OPPORTUNITIES

I sell much cheaper, I know what they need here and how they want it”

RATIONALIZATION

They ask me for savings, I give it to them, here we all win and I am not stealing anything”

CORPORATE PRESSURE

“They are demanding cost saving; I will be evaluated by the same token

SOCIAL PRESSURE

“I have accomplished so much in my life and work; I cannot fail now!”

A.I ACTING

WHAT WE DETECT

NOFRAUD and The Fraud Explorer contributions helped find:

BRIBERY AND

CORRUPTION

Conflicts of Interest, bribery, bid rigging, illegal gratuities, lies and economic extortion

ASSET

MISAPPROPRIATION

Money, inventory, and asset theft, fraudulent disbursements, information leakage

FINANCIAL

STATEMENT FRAUD

Falsification and lies in financial statements and reports, loss of documents

© NOFRAUD Latam LLC.