Date: June 2, 2016

Low Tech Fraud in a High Tech World: Embezzlement and Check Fraud (I)

Session Description

With management attention focused on high tech fraud such as cyber-crime, organizations often forget that major losses are caused by “low tech” embezzlement schemes.  In a recent national study, companies with fewer than 500 employees had average embezzlement losses of $807,443, with median losses of $294,354. Some companies have gone out of business due to these losses. Those that do survive often experience layoffs, cutbacks and salary freezes. The victims are not only the organizations themselves, but their suppliers, vendors, and families. 

 

Embezzlement is almost entirely preventable with “low tech” controls and protocols. Attendees will learn the “red flags” and motivations of embezzlement, and specific strategies for avoiding it. 

 

Meanwhile, "old-school" check fraud is often intertwined with embezzlement, and still causes more losses than all other forms of payment fraud. Check fraud is on the rise after many years of slow decline, and mobile Remote Deposit Capture (mRDC) has only added to its complexity. Attendees will learn how the Check 21 Warranties combine with Holder In Due Course to give recourse to banks and consumers seeking to recoup mRDC losses. 

 

The presenters will share real-life fraud situations, including what went wrong and how the losses could have been prevented.

 

 

Speaker Information

Anthony (Tony) D’Elia is Vice President and Director of Compliance within AllianceBernstein L.P.'s Legal and Compliance Department in New York, N.Y. His responsibilities include overseeing and ensuring that AllianceBernstein Investor Services and Managed Account/Wrap Fee Program comply with applicable regulations. Tony also participates on the firm’s Internal Fraud Controls Sub-Committee.

Tony has been with the firm for 23 years. Tony has held several positions within AllianceBernstein, including Global Operational Risk Management and IRS/Regulatory Compliance. Tony also was co-chair of NICSA’s Compliance and Risk Management Committee.

Tony received his B.S. in Organizational Behavior & Management and Economics from New York University's Stern School of Business in 1990 and his MBA at Wagner College in May 2003. In addition to being a Certified Anti-Money Laundering Specialist, Tony is a Certified Fraud Examiner and received a Certificate in U.S. Law and Methodologies from New York University’s School of Continuing and Professional Studies.

Greg Litster is president and founder of SAFEChecks, and is editor of Frank Abagnale’s Fraud Bulletin.

Greg is a former banker of 18 years, has written articles published in AFP Exchange, American Payroll Association, American Land Title Association, and Sheshunoff’s Corporate Cash Management  Manual.  He has served as an expert witness on several national and international check fraud and embezzlement cases, and has spoken on fraud prevention across the country for numerous financial institutions and professional organizations, including AFP, GFOA, TEXPO, SoCal Expo.

Greg earned a Bachelor of Science in Economics and an MBA in Finance, both from Brigham Young University.