The use of sophisiticated software to clone and investigate suspect hard drives, cell phones, and other digital devices.
A check perfomred on date to see if an error has occured in transmitting, reading, or writing the data.
Cyclic redundancy check (CRC) number
Imposing strict temporary controls on an activity so that, during the observation period, fraud is virtually impossible.
Investigation technique that relies on the senses, especially hearing and seeing.
Fraud investigation methods that focus on the fraudulent transfer of assets; includes surveillance, invigilatoin, seizing computers, and examining physical evidence.
Theft act investigations
Tool that cooridinates the various elements of a fraud investigation to help identify possible suspects.
An identification scheme for marking eveidence in criminal and civil trial cases; used by lawyers and others to track and refer to evidence.
Maintaining detailed records about documents from the time they are received in the investigation process until the trial in completed.
Chain of custody
Sampling used in fraud detection that assumes a zero expected error rate. The methodology allows an auditor to determine confidence levels and make inferences from the sample to the population.
Analyzing and examining specific documents to search for forgery, alteration, or other problems associated with the documents.
People with supporting certifications and specialized training who make judgments about the authenticity of documents.
The process of linking people, documents, and events in a case.
The risk that a sample will be examined and the true characteristics of the sample, including fraudulent or other elements of interest, will be misinterpreted or overlooked.
Risk that a sample is not representative of the population.
A written order in the name of the court, requiring a witness to submit to a depostion, give testimony at trial, or report to an administrative body.
Passed in 1999, this law prohibits the use of false pretenses to access the personal information of others. It does allow banks and other financial institutions to share or sell customer information.
A measure database that contains criminal histroy records for almost 30 million offenders and can be queried using a name, birth date, and other data.
Interstate Identification Index (III)
A question and answer session designed to elicit information.
The major criminal database maintained by the FBI. This database contains information on stolen vehicles, securites, boats, missing persons, and other information helpful in fraud investigations.
National Crime Information Center (NCIC)
Analytical method that estimates a suspect's unexplained income.
Net worth method
Right of customers to give written notice to financial institutions that prohibits the institution from sharing or selling customer's personal information.
Inspectors or investigators hired by the U.S. Postal Service to handle major fraud cases that are perpetrated through the U.S. mail system.
Searching through a person's trash for possible evidence in an investigation.
Psychological problems that are often experienced by persons committing fraud.
acute emotional crisis
Questions asked of interviewees that are intended to result in a confession.
admission seeking questions
Preliminary questions asked in an interview to assess and better understand the situation.
An answer that implies guilt.
That part of an interview that is intended to determine how to an interviewee responds when answering queestions about subjects he or she is comfortable with so as to be able to contrast the verbal and nonverbal cues from those questions with those exhibited when the interviewee is asked about a fraudulent or dishonest act.
calibrating or norming
The emotional reliving of painful past experiences.
The use of time in interpersonal relationships to convey meaning, attitudes, and desires.
The tendency of a person to repeat novel experiences.
A method of interview wherein the interviewer asks questions that will yield answers that are desirable.
An unconscious behavior exhibited during interviews.
custom or habit
Reasoning from the general to the particular or from cause to effect.
Sociopsychological forces that make conversations, including interviews, easier to accomplish.
facilitators of communication
In an interview, when the interviewer allows the interviewee to merely tell the story as it happened, without asking specific questions.
The study of handwriting to help identify fraud and other crimes.
Reasoning from the specific to the general, or from effect to cause.
Non-confrontational, non-threatening questions used for information gathering.
Any sociopsychological barrier that impedes the flow of relevant information by making respondents unable or unwilling to provide information
Communication using body language, facial movements, and so forth.
Controlling the length of pauses and the rate of speech during an interview.
Communication not only by what you say, but how you say it.
Questionnaries or other written assessment test that are intended to assess someone's honesty or propensity to be dishonest.
pencil-and-paper honesty tests
An electronic assessment of honesty that includes hooking a person up to a machine to assess the normalcy of breathing, pulse, and other physical abnormalities.
Communicating with others by virtue of the relative position of the bodies.
The feeling of trust and confidence an interviewer seeks to establish and maintain with interviewees.
An interviewing technique wherein an interviewer pauses and says nothing; usually used to elicit a more thorough response.
An analysis that determines how much stress a person is experiencing through analyzing his or her voice.
voice stress analysis
Interviews in which there is a great deal of tension and possible contention.
Governmental organization with responsibilty for regulating stock trading and the financial statements and reports of public companies.
Securities and Exchange Commission
Reports such as the balance sheet, income statement, and statement of cash flows that summarize the financial status and results of operations of a business entity.
The intentional misstatement of financial statments through omission of critical facts or disclosures, misstatement of amounts or misapplication of accepted accounting principles.
Financial statement fraud
The practice of deliberately and improperly changing the effective dates on stock options for the purpose of securing extra compensation for the option holders.
The National Commission on Fraudulent Financial Reporting that made recommendation related to financial statement fraud and other matters in 1987.
The Treadway Commission
An organization made up of representatives from major accounting organizations that is concerned about internal controls and financial statement fraud.
Committee of Sponsoring Organizations (COSO)
A public document released by the SEC when a company commits financial statement fraud or other perceived inappropriate activities.
SEC enforcement releases
The reasoning process involved in the fraud setting where an investigator or auditor attempts to predict how a fraud perpetrator may be responding to likely behavior of the investigator.
Statistics and data that are not financial in nature but can be used to assess an organization's performance.
Nonfinancial performance measures
The type of strategic reasoning that occurs when an individual who is interacting with another party only considers the conditions that directly affect themselves but not the other party.
The type of strategic reasoning that occurs when an individual considers conditons that directly affect his or her strategic opponent while assuming that the oppnent is engaging in zero-order reasoning.
The type of strategic reasoning that occurs when an individual considers how his or her strategic opponent is engaging in a level of strategic reasoning that is not zero-order reasoning.
Annual report filed by publicly traded U.S. companies to the SEC.
Quarterly report filed by publicly traded companies to the SEC.
Theft that is committed by stealing receipts, stealing assets on hand, or committing some type of disbursement fraud.
Collusive fraud wherein an employee helps a vendor illegally obtain a contract that was supposed to involve competitive bidding.
Submission of a false or an altered invoice that causes an employer to willingly issue a check.
The offering, giving receiving, or soliciting of anything of value to influence an official act.
Scheme in which dishonest employees (1) prepare fraudulent checks for their own benefit or (2) intercept checks intended for a third party and convert the checks for their own benefit.
Giving gifts, promising favors, or otherwise bribing persons to gain a business advantage.
Fraud in which employees, managers, or executives put their personal interest above the company's interest, usually resulting in an adverse effect on the organization.
Conflict of interest
Dishonesty that involves the following schemes: (1) bribery, (2) conficts of interest, (3) economic extortion, and (4) illegal gratuities.
Ficticious entities created for the sole purpose of committing fraud.
Dummy companies or shell companies
Demanding payment from a vendor in order to make a decision in the vendor's favor.
Fraud schemes that involve manipulating expenses and use the payroll function or the purchasing and reimbursement system to embezzle from a company.
Financial statements that have been altered, contain misleading or untrue amounts, or have omitted required information.
Similar to bribery, except that there is no intent to influence a particular business decision, but rather to reward someone for making a favorable decision.
Funds or gifts received secretly for performing some task or obtaining favorable treatment.
Fraud that involves stealing one customer's payment and then crediting that customer's account when a subsequent customer pays.
Intentionally taking an employer's cash or other assets without the consent and against the will of the employer, after it has been recorded in the company's accounting system.
The vaue of one unit of a mutual fund.
Net asset value (NAV)
Fraud schemes that involve manipulating the payroll function of the organization. These schemes may also involve manipulating the purchasing and/or reimbursement function as well.
Schemes that involve false refunds or false voids.
Register disbursement schemes
A process where fraudsters use information storage devices to capture valuable information from victims' credit cards or other bar-encoded documents.
Using unique features of the human body to create secure acess controls.
Theft of data or personal information through such means as sniffing, spoofing, and customer impersonation.
A signature sent over the Internet.
Digital signatures and certificates
The use of information technology and electronic communication networks to exchange business information and conduct transactions in electronic, paperless form.
Pretending to be someone you are not - a major problem in e-business transactions.
Secret codes or names that allow users to access networks and other computer systems.
A high-tech scam that uses spam or pop-up messages to deceive consumers into disclosing credit card numbers, bank account information, Social security number, passwords, or other sensitive information.
Reliance on secrecy of design, implementation, or holes to provide security rather than the use of time-tested methods that have withstood public scrutiny.
Security through obscurity
Illegal or unauthorized viewing of information as it passes along a network communication channel.
Deceiving in order to breach security controls; often involves impersonating someone else, and can be done by e-mail, telephone, or face-to-face.
Changing the information in an e-mail header or an IP address to hide indentities.
Rogue access points accrued at shifting user information on wireless networks.