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Revenue Assurance
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Curriculum Details
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TFO003: Broken Trusts: Customer and Employee Fraud
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 "A
company has a special trusted relationship with their employees and
their customers, and that makes it especially difficult to deal with
those situations where that trust is broken. You can’t treat
employees and customers as “suspect in a criminal investigation”,
because it is expensive and insulting. On the other hand, you can’t
just let them do whatever they want. This class focuses on the
special problems of customer/employee frauds.”
Learn about the major categories of customer and employee fraud.
Learn how to detect, deter and handle the sensitive issues in this
area
Telecommunications companies provide easy,
low-cost, secure access to hundreds of services for billions of
people around the world, and the vast majority of the customers and
employees of those companies are honest in their dealings.
Unfortunately, there is a small, but significant population of
individuals who will not hesitate to capitalize on any weakness that
the telco environment presents to steal services or use the system
to accomplish any number of other illegal or fraudulent activities.
In this class, we will focus on the issues
related to the security and integrity of the telco when it comes to
customers and employees.
There are many areas where the telco is
especially vulnerable to fraudulent attack. The biggest areas
include:
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In the sales and customer service areas |
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Wherever inventories, contracts and supply chain management are
concerned |
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With accounting systems and controls |
In
this class we provide the student with a comprehensive review of
each of these areas, and consider the best ways to detect, prevent
and prosecute them when they do occur.
Extensive research and methodology has been developed in these areas
over the past several decades. In this class, we will review the
current best practice, and review major cases involving each of the
major categories of financial/accounting fraud.
The issues of fraud detection, deterrence and prosecution are more
sensitive in this area than in any other area. While people will
hardly ever resist the thought of prosecuting outright professional
criminals, it often gets to be much more difficult to figure out
what do to about internal fraud cases. In this course, we will
provide students with a set of step-by-step guidelines for the
detection, investigation and case management process. Case
management with a due sensitivity to the interpersonal, H/R, legal,
investor and market issues associated with these kinds of situation.
Duration:
1 day
Who Should Attend?
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Experienced Telecoms Fraud Management personnel
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People new to Telecoms Fraud Management |
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Internal Auditors, CFOs, Security Specialists, Risk
Officers and related Managers |
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Regulators, Law Enforcement Officers, Government
Security Officers and others |
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Anyone interested in understanding the different legal,
regulatory, market, employee, morale and financial risks
associated with customer and employee fraud
vulnerabilities |
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Overview:
Customer and employee fraud represent the largest single source of
fraud suffered by telcos worldwide and yet fraud and security
managers typically spend little or no time considering the issues.
While it is true that there are existing controls and groups in
place to try to contain or prevent many of these types of fraud, the
fact is that they still happen and at an alarmingly higher rate.
The
class begins with a review of the many different types of customer
and employee fraud, including their extent and the financial damage
they can generate. We then zero in on each of the major subsets of
employee fraud including:
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CRM and Sales Channel Fraud – These are the fraud cases concerned
with both illegal and fraudulent customer interactions, such as
collusion between telco agent (sales rep/customer service rep)
and customer, or perpetuated by the employees themselves (sales
commission fraud, fraudulent activity reporting, etc). |
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Supply Chain and Inventory Management Fraud – These are the cases
which involve collusion between telco employees (warehouse,
logistics, inventory control) and suppliers or between employees
themselves, which allow for telcos to lose billions of dollars
worth of equipment, supplies and materials. |
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Accounting Fraud – The classic and still the most devastating and
expensive form of internal fraud. These are cases where trusted
employees are able to bypass existing controls and operations to
figure out how to profit by the loopholes they find within
accounting systems. |
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Customer Fraud – This type of fraud involves all of those cases
where the customer falsifies their identity or otherwise “fools
the system” into allowing them more access, service or financial
gain than deserved. |
Our
coverage within each of these domains will include:
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Review of the target domains, methods of ingress and typical / most
common exploits experienced in each area |
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Review of the typical and most effective techniques for detection,
deterrence and prosecution |
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Consideration of the best methods of cooperation and overlapping
controls in order to leverage and re-enforce the work being done
by auditors, revenue assurance, security and other personnel in
the management of these risks. |
In
addition to this domain-by-domain review, this class will also focus
on two key aspects of the area:
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Traditional and proven audit controls |
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Approaches for managing these risks |
This
class will provide an in-depth review of the entire investigation
and case management process. Our class will provide students with a
step-by-step procedure for the:
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Identification of incidents most likely to indicate fraud
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Forensic accounting and analytical techniques to assist in case
building and escalation |
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Evidentiary disciplines and procedures |
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Interviewing and interrogation techniques |
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Phishing, Baiting, Trapping and the creation of overt and covert
alarms and controls |
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Collecting physical and logical evidence and making sure that it is
legal |
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Case development |
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Case presentation |
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Case Advocacy and Prosecution Enablement |
Students will participate in the development of their own Case
Development exercise using simulated case materials.
Learn how to:
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Define the principle operational conditions associated with CRM
and Sales Channel related fraud and provide clear guidelines for
detecting, investigating, deterring and prosecuting those cases.
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Define the principle operational conditions associated with
Supply Chain and Inventory Management related fraud, and provide
clear guidelines for detecting, investigating, deterring and
prosecuting those cases. |
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Define the principle operational conditions associated with
Accounting and Administrative fraud and provide clear guidelines
for detecting, investigating, deterring and prosecuting those
cases. |
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Bribery, Coercion, Greed and Apathy as the biggest drivers of
employee fraud |
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Opportunity Fraud– the customer who decides to cheat |
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Key
techniques and standards for accounting fraud audit, detection
and prosecution. |
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Top
exploits suffered by telecoms in the CRM, Sales Channel,
Inventory Management, Supply Chain, Accounting and
Administrative Areas. |
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Develop a plan for the protection and security of the CRM and
Sales Channels |
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Develop a plan for the protection and security of supply chain
and inventory management domains |
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Develop a plan for the protection of accounting systems and
processes |
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Understand the Legal Aspects of Fraud investigations |
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Organize the investigation process, types of evidence, legality
of evidence and documentation requirements |
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Handle physical evidence, interviewing procedures, witness
management and interrogation procedures |
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Utilize Investigative Resources |
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Perform Forensic Accounting, Analytics, Statistics and
Evidentiary Law |
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Use
sampling and pattern recognition to build a case |
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Perform Forensic detection techniques |
Key Concepts:
The
size, extent and nature of customer and employee based fraud; the
primary domains of customer and employee based fraud including CRM,
Sales Channel, Supply Chain, Inventory Management, Accounting and
Administration Fraud; Key Domain Characteristics; Targets, Methods
of Ingress, and Principle Exploits; Case Management Discipline; Case
Rationalization; Incident Triage; Forensic Accounting Techniques;
Forensic Analytics; Customer Fraud Exploits; Targets; MOI and MOA;
Prosecution Benefits; Methods and Issues; Prosecution Advocacy;
Financial Audit Techniques
GRAPA
Fraud Officer Certification Credit
Successful completion
of this
course, testing and experience verification will result in the
student being awarded GRAPA Fraud Officer Competency Credit for the
following areas from the GRAPA Fraud Officer "Body of Knowledge":
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CRM and Sales Fraud Domain Analysis and Method of Address (MOA) |
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Supply Chain and Inventory Mgmt Fraud Domain Analysis and MOA
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Accounting and Administration Fraud Domain Analysis and MOA |
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Financial Audit Techniques, Methods and Objectives |
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Sales Channel Exploits (Methods of Intrusion, Target Domains,
Cases) |
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Inventory and Supply Chain Exploits (Methods of Intrusion, Target
Domains, Cases) |
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Accounting Fraud Exploits (Methods of Intrusion, Target Domains,
Cases) |
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Investigative procedures and techniques |
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Case management: Building Cases and Advocacy for Case prosecution
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Prosecution: Methods, Issues and Benefits |
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Case Dispensation and Resolution |
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Customer Fraud Exploits (Methods of Intrusion, Target Domains and
Case Management |
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Case Development Workshop |
Prerequisite:
Students must attend and successfully complete Day 1 : TFO01 – Telco
Fraud Officer and Day 2 : TFO002 – Techno Fraud to be able to attend
this class.
(See
TFO01and TFO02 for more information about prerequisites)
Successful completion of the entire sequence of classes TFO01-TFO05
is required to qualify for certification.
Please click here for the Telco Fraud
Officer Program Home Page
Please
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