The USA based Association of Certified Fraud Examiners (ACFE) provide some valuable resources. Workplace Fraud is a serious issue in Australia. Tools like their Fraud Prevention Checkup may assist you to consider what practical steps you can take to reduce workplace fraud.

The ACFE is the world's largest anti-fraud organisation.  Streeterlaw Sydney Law Firm also have available a free White Paper for businesses.

Workplace Fraud Investigation, How to legally uncover it, stop it, prevent it.

The Association of Certified Fraud Examiners (ACFE) have a free report Occupational Fraud: A Study of the Impact of an Economic Recession available from their website.

ACFE President James D. Ratley, CFE says "Desperate people do desperate things. Loyal employees have bills to pay and families to feed. In a good economy, they would never think of committing fraud against their employers. But especially now, organizations must be vigilant during these turbulent times by ensuring proper fraud prevention procedures are in place."

The survey behind the report also found that:
* Employees pose the greatest fraud threat in the current economy. When asked which, if any, of several categories of fraud increased during the previous 12 months, the largest number of survey respondents (48 percent) indicated that embezzlement was on the rise.
* Layoffs are affecting organisations' internal control systems. Nearly 60 percent of CFEs who work as in-house fraud examiners reported that their companies had experienced layoffs during the past year. Among those who had experienced layoffs, almost 35 percent said their company had eliminated some controls, while 44.2 percent said the layoffs had no effect on controls and only 3.2 percent said their company had increased controls.

The survey was conducted in USA in February and March 2009. The findings are still of interest now in Australia.

For a copy of the report click here >> Occupational Fraud: A Study of the Impact of an Economic Recession

Insider trading is difficult to prove without a paper trail but sometimes the signs are obvious. Studying the stock prices of major corporations over a one year period helped highlight that insider trading was taking place. In this Insider Trading video below it states 40% of stock prices leading up to mergers over $1b USA experience spikes BEFORE the announcement was made.

The continued policing and prosecuting of insider trading is seen as improving the credibility of the market and creating a more level the playing field for investors.

Other Insider Trading blogposts

Insider trading stock tips at family reunion
What is insider trading?
Decriminalising insider trading proposal
Legal and illegal insider trading

Some corporate fraud by employees is not premeditated. it is opportunistic. Sometimes temptation overrides common sense. It is important that businesses have in place mechanisms to prevent fraud.

In this video it explains a simple scenario. A laid off employee didn’t have his corporate credit card canceled. So he took advantage of it and went shopping and paid for a family holiday. Clearly it is illegal but the recovery of the money can be a distraction and expense your business could do without.

This video has some simple tips for companies to help reduce employee fraud. Streeterlaw's Mark Streeter has extensive experience in fraud cases.



Corporate Fraud does happen in Australia? Ask for Streeterlaw's free White Paper: Workplace Fraud Investigation. How to uncover it, prevent it, stop it

Insider trading is illegal in Australia… but what is an insider trading definition?

The simplest definition of Insider Trading is taking advantage of information that is not public.

This 'inside' information is most often seen as being used to give someone an unfair advantage in the buying or selling of shares or stocks.

Australians are now more likely to personally own shares in companies in which we work or where a member of our family or close friends work. When you include superannuation even more Australians own stocks and shares. Everyone would appreciate knowing ahead of time if a stock is likely to rise, or if it is about to fall.

It is considered natural to ask friends or family who work for companies on the Australian stock exchange for insider information on trading tips of shares. Your innocent question over a BBQ of "what's happening at work?" could however land you, and your friend, in court facing insider trading penalties? It depends on whether the information being shared is already 'public' knowledge. If your friend’s answer convinced you something significant was about to happen and that you should be selling, or buying, shares then a court may consider it insider trading?

Likewise how would the law courts consider if you saw a confidential report on the photocopier at work about a major loss or new investment and bought or sold shares? What if based on the information you had seen you told some friends or family to expect shares prices to change? Insider trading can appear quite innocent, but the reason Australian Courts treat it as a crime is that it gives 'insiders' an unfair advantage over the general public.

This video includes a brief definition of insider trading.
 

Other Insider Trading blogposts

Insider trading suspected in major USA mergers
Insider trading stock tips at family reunion
Decriminalising insider trading proposal
Legal and illegal insider trading

Insider trading only became illegal in 1960's when it was felt some individuals had an unfair advantage over others with the buying and selling of stocks. In 2009 an article was published supporting a fairly radical idea for insider trading to be decriminalised again. It is a very controversial idea.

Since the 1960's insider trading regulations have continued to be expanded. The video includes a discussion that fraud and insider trading are often linked. The article's author believes is that allowing markets to drive stock prices to realistic values is fairer. The counter argument is that it still gives an unfair advantage to some.

For the author insider trading is not fraud but rather is more likely to expose corporate fraud. The video also highlights the relative lack of resources being used on examining and trying to prevent Insider Trading.

Other Insider Trading blogposts

Insider trading suspected in major USA mergers
Insider trading stock tips at family reunion
What is insider trading?
Legal and illegal insider trading