Secrets Behind Fraud Risk Assessment and Corporate Investigation

Corporate Frauds go unnoticed till they snowball into a bigger problem impacting performance and productivity of your business. Apart from the financial loss,  corporate frauds create fissures in the good will and trust, the stakeholders have with your brand/business. In the light of a Fraud, it becomes imperative to carry out a thorough investigation along with fraud risk assessment to prevent the recurrence of the crime in future.

What is Fraud Risk Assessment?

Fraud risk assessment will identify as to how exposed or vulnerable your business is to Corporate frauds or white collar crimes. Fraud risk assessment will address certain areas that are tangible and intangible. These include:

  1. Review of critical reports that show steep decline in company profitability, performance or an inexplicable rise in operational expenses.
  2. Review of audit controls for frequent large purchases and base documents supporting the same
  3. Identification of lack of documentation or missing entries in account books exposed during audit time
  4. Accountability of employees involved in financial bookkeeping
  5. Compliance with company’s security and auditory controls
  6. Confidentiality and integrity of critical documents of the company maintained.
  7. Check for time thefts, drug abuse and other gambling activities that are leading to siphoning of funds and slack performance

Fraud risk assessment aids in identifying lapses and exercising controls in the company’s security structure.  A detailed report on fraud risk exposure forms a base document in the incidence of corporate frauds and investigations pertaining to the same.

Corporate Investigation

The spectrum of Corporate Investigations services will cover

  • Frauds of civil and criminal nature
  • Infringement on/theft of intellectual property
  • Embezzlement issues
  • Violations of company policies
  • Detecting corrupt practices
  • Blue collar crimes
  • Time theft
  • Kickbacks and other related crimes

Experts in fraud assessment and corporate investigations services, Danbee offers end-to-end support in corporate investigation by

  • Checking for security non-compliance: By identifying the security lapses and violations that have led to the incident
  • Providing litigation support : Helping through legal counsel to gather evidence and hear our witnesses to ease out the proceedings in the investigation
  • Carrying out vulnerability assessments: To assess the risk exposure and propose measures to minimize it
  • Cyber Security check points: With cyber crimes on the rise, online security is as crucial to maintain the integrity of your online data warehouses. Danbee checks for software/system vulnerabilities and enforces practices that will help safeguard your online data.

Fraud risk assessment and corporate investigation shed light on the hereto invisible operational lapses in a company’s structure. Danbee’s with its modern methodologies in investigation is prompt and quick to deliver results.

Undercover Investigations and Operations

The increasing incidence of Corporate Frauds points to the lack of changing dynamics of such crimes and the rising intelligence of the criminal minds. Corporate frauds, apart from costing a business millions, bring it to disrepute as well.

Undercover Investigations – More Than What Meets the Eye

Undercover investigations help to unravel evidence through channels, which are not highly visible. For instance CCTV surveillance  at the workplace may have a video footage, which will have more in store than what actually is shown. Thus the scope and depth of undercover investigations  is extensive and every minute detail uncovered, counts.
At the workplace, undercover investigations and operations can help resolve:

  • White & blue collar crimes:  White collar crimes include financially-driven non-violent type committed by businesses such as fraud, bribery, cyber crime, embezzlement, etc.  Whereas the blue-collar crime investigations cover workplace violence, substance abuse, product tampering etc
  •  Intangible aspects of non-performance : Businesses may experience a slump in productivity and profitability due to reasons that may not be visible. These may include time-thefts, supervisory slackness that generally goes unnoticed
  •  Operational issues such as productivity problems and violations of company policies that impact productivity.
Undercover Investigation

Experts & Their Expertise in Undercover Investigations

When it comes to expertise in undercover fraud investigations,  there is need for intelligence and intuitive approach that comes with years of experience by handling such types of crimes across various business sectors.  The investigations have to be unbiased so that even the minute-st detail comes under the scanner.

Why Danbee are the Experts?

Danbee’s undercover investigation services are research-intensive to bring to light all the elements/entities involved in the crime through its rigorous procedures.  This comes through

  • The comprehensive detailing they provide zeroes in on the exact cause, the culpable entities
  •  Vulnerability assessment reports that identify the areas where security has to be strengthened.
  •  Litigation support where legal counsel is required to gather evidence, or interrogate witnesses to ease out the investigation proceedings.
  •  Implementing cyber security measures,  especially when the online data warehouses are as critical and as susceptible to hackers and other forms of cyber crimes.
  • Implementing the best practices for supply chain security through C-TPAT certification. Those in the supply chain business need to ensure the safety of their goods at all times, till it is delivered to their destination.  They need to be specifically safeguarded against terrorist attacks and reduce the exposure to risks posed by illegal outfits. C-TPAT certification enforces the highest standards of security for all businesses involved in the supply chain.

The certification also expedites processing at the customs level during import or exports.

Danbee’s undercover investigations services is world class, as they provide expertise that work with the latest methodologies, facilitating the fastest of results!

Personnel Security For Corporate Investigations


Corporate frauds not only cost colossal loss to a business but also brings down its repute and public image.
It is critical to indentify the cause and nature of frauds to nab the culprit and assess the security lapses that would have led to fraudulence.
Corporate investigations assess the risk exposure, the loss due to theft or other fraudulence, and define ways to optimize operations, profitability and productivity of a company

Corporate Investigations services:

Corporate investigation services cover a wide ambit and can extend up to your supply chain(logistics business, for instance) links.
The specific investigation services are: Background assessment: Background verification of employees help throw light on their personal/professional history. Any pockmarks revealed act as valuable information, and give the right lead during corporate investigations.

Undercover Investigation:

White and blue-collar crimes such as robbery, theft, murder or can be unravelled through undercover Investigations. Other workplace-related issues such as drugs-usage, violence, or tinkering with evidence or workplace resources can be undertaken through corporate investigation services .

Legal support:

When it comes to solving crimes, there is a chain of background activities such as gathering evidence, inquiring witnesses, and rendering legal counsel to uncover critical information that will help in solving the case.

Assessing the risk exposure:

Corporate Frauds happen because of the easily identifiable loopholes, that give ample scope for such instances. Carrying out security audits in an unbiased manner and establishing security controls help in risk mitigation and theft-loss resulting from the risk. Implementing C-TPAT security standards ensure that all security measures are in place through a background check for compliance by all entities involved in the specific business process.

Supply chain security:

Corporate investigation services can check for implementation of C-TPAT certifications along the supply chain management of your organization. C-TPAT compliant companies uphold the strictest security standards to prevent thefts, asset-loss and ensures that your transhipment reaches its destination without any hassles.

Cyber security:

Another critical focus area under Corporate investigation services is checking of cyber security measures. With most of the company’s assets deployed online along with ready accessibility to critical data, it becomes imperative to see that all security measures are in place with respect to the online data and information.
In addition, with the steep rise in cyber crimes, it needs to be ensured that all identities are preserved and made tamper-proof to prevent misuse. Cyber security audits assess the security standards in place, the lapses and prospective measures to reinforce safety in the corporate networks.

Corporate investigation services providers need to cover the length, breadth and depth of an incidence of fraud/crime and give solutions that are futuristic, effective, and, mitigate the risks to prevent recurrence of the same. Danbee investigations, a leader in the space of Corporate investigations, with its expertise and varied industrial experience, defines security measures that minimize the risks of corporate crimes and maximize productivity.

C-Tpat Audits – What Do They Really Mean?


C tpat audits ensure compliance of the supply chain. The audits are periodically conducted by SGS and other trusted audit organizations to evaluate and enhance security measures throughout the supply chain. C tpat audit requirements ensure outside barriers and physical security, employee security and internal factory security, shipping dock security, key and seal controls, security processes, merchandise and container movements, and computer systems security. C tpat audits alleviate impacts of delay caused due to documentation processing and frequency of border inspections. Businesses incur huge staffing expenses and delay in meeting deadlines.

The c tpat audit ensures that the organization’s security processes are in place and corrective actions and improvement plans are established. C tpat audits further ensure compliance of security systems and procedures and continuous monitoring of the compliance through periodic audits. Prospective and contracted third party suppliers, freight forwarders, manufacturers and other service providers are evaluated based on the risk assessment within the supply chain. Based on a checklist and criteria, the c tpat audit program is defined by the evaluators to conduct an onsite audit at specific business or supply chain locations. A transparent audit report is provided upon completion of the audit.

It is further reviewed by technical reviewers before all the relevant parties in the contract receive a signed copy. The evaluators also recommend future improvement measures to be implemented within the supply chain. Part of the scoring includes compliance with requirements, improvements needed, and non-conformance. A written procedure is documented for compliance, with objective evidence the need for improvement is identified and finally a documented procedure for non-conformance is prepared. Each of the criteria is graded according to percentages and improvement plans have detailed action plans, identified (with name) the person responsible for the improvement and the deadline or date when the improvement will be completed.

All aspects of the manufacture and supply chain are reviewed with the c tpat audit.

C Tpat Security Certification


Customs-Trade Partnership Against Terrorism abbreviated as C-TPAT is a joint business partnership with the CBP a government body responsible for clearance of goods at the US borders. The aim of c tpat is to provide safe border trade, with an increase in security thus facilitating a smooth supply chain. Beginning as early as 2001 it only had seven participants back then. Today partnerships are more than 10,000 with 50% of them being importers. The c tpat security certification program is inclined to partner with import providers such as air carriers, sea and ocean carriers, 3PL operators, cross-border highway carriers, marine port authorities, import customs brokers, rail carriers and other consolidators. Importers derive huge benefits from the program. US exporters can benefit from c tpat by evading the JIT or just-in-time delay that can translate to monetary losses for the exporter. The export pilot program floated by CBP has brought about the MRA or the mutual recognition agreement to collaborate with export traders and officially allow US exporters to participate in the c-tpat security certification. The c tpat certification offers several benefits to its participants such as access to FAST lanes, moving to the front of the inspection lines, short waiting times at the border, access to SVI or status verification interface, a supply chain security specialist assigned to the company and participation in the importer self-assessment program (ISA) among others. With this CBP greatly benefits with visibility and is able to focus its resources towards high-risk shipments. There are no joining fees associated with the program through significant operational improvement costs are incurred while implementing the new standards. It deems the partner to have better import control and stability of brokerage and international transport operations. C tpat certification can be obtained by first conducting a security risk assessment and documenting it. Thereafter the company submits its application through the c-tpat portal and completes a supply chain security profile that details if the company meets the minimum security criteria for the certification. CBP reviews all the relevant submitted documentation and takes about 90 days to certify the company which is valid for up to three years.

Corporate Fraud And Undercover Investigations


Corporate investigations have gained popularity of late with awareness of large scale theft and fraud through TV shows and general coverage of business fraud covered across news channels. Companies routinely request undercover investigations to assess the smoothness of their operational workflow and to acknowledge the implementation of policies and regulations that have been stipulated for the functioning of an organization. Sometimes bigger organizations cannot evaluate the morale of their employees due to massive work operations. Undercover agents are requested to analyze the attitude and disposition in general of the organization for management to understand work culture and levels of productivity. Security concerns are one of the main reasons that a corporate would hire undercover fraud investigators. Theft of proprietary information or intellectual property, cybercrime, collusion fraud, workplace substance abuse, unexplained loss of inventory, theft of product or inventory etc., are some of the concerns where undercover investigations are very effective. Fraud can directly affect the productivity and profitability of a company. Operatives are hired to be retained in the company undercover for prolonged periods of time anywhere from 5 to 10 years. Ongoing intelligence helps the company to adjust their operations consistent with the company’s policies and procedures. Inside perspectives of risk and security threats are best obtained from undercover operatives who work as regular employees. They mingle with different teams and individuals within the organization and move around just like another employee of the company but view the workflow from a totally different perspective. Facets of the organization are observed and reported to the relevant hiring authorities who are completely oblivious to certain incidents within the company. Distribution centers are usually at a threat of finished products and goods being stolen through transporters who overload their vehicles with extra goods to be sold to a third party for thousands of dollars. Similarly, investigation of continuous workplace accidents could mean a case of substance abuse within the premises of the organization. Employees receiving incentives in the form of purchase kickbacks from a vendor who is desirous of contracts from the company is absolutely against company policy. Fraud investigations can uncover such matters of extortion through agents who have been designated to investigate such subterfuge. Undercover operations and reporting take a lot of time and reports derived cannot be acted upon instantly. In certain cases, legal channels may have to be adopted to obtain restitution. The slightest suspicion of corporate fraud or fraudulent activity asserts the need for investigative methodologies. Fraudulent activity is not limited to geographic boundaries and can sometimes involve global resources which have to be investigated at a certain bandwidth.

What Is C Tpat Security And How Does It Benefit Companies


Customs-Trade Partnership Against Terrorism is abbreviated as C-TPAT. A CBP (U.S. Customs and Border Protection) led initiative the CTPAT cynosure is to secure the supply chain of private companies’ in resistance to cross-border terrorism. Actuated in 2001 the congregation has grown from just 7 members to more than 10,000 memberships. A purely voluntary crusade it intends to create impregnable supply chain transferences and elevate legitimate trade flow. The first of its kind C-TPAT security policies ensure a secure and smooth supply chain for participants, their employees and clients.

CTPAT Requirements

Partners who wish to participate in the C-TPAT programme have to sign an agreement. The acknowledgment states that the company will conduct a comprehensive self-assessment of the existing supply chain in accordance with the guidelines stipulated by the CTPAT to check their level of compliance. Areas that might require assuefaction include container security, physical access controls, security training and threat awareness, physical security and IT security. The 5-step risk assessment analysis requires companies to map cargo flow, threat assessments, vulnerability assessments, outlining an action plan, and document all analytical records of risk assessments that have been tendered. A supply chain security profile is then created and submitted to customs. A program has to be developed and implemented commensurate with the CTPAT guidelines. These guidelines are simultaneously communicated to other partners involved in the supply chain and efforts are made to enact these CTPAT recommendations associates within the supply chain. The CTPAT portal profile is maintained by carrying out annual security assessments. CTPAT validations of participant’s facility and those of the company’s suppliers are also conducted.

CTPAT Benefits to Partners

With importers deriving most of the benefits of the CTPAT, the number of inspections at the borders is drastically minimized for these CTPAT certified partners who are ameliorated from the travails of voluminous and tedious customs examinations. Membership statuses can be accessed through the Status Verification Interface that allows members to view their CTPAT position. CTPAT certified members receive credits from the CBP targeting system. Importers on the Mexican and Canadian borders have access to FAST lanes. Focused Assessment pools do not direct scrutiny on these importers due to their eligibility for the ISA or Importer Self Assessment Program. Penalty mitigations are up to 50% for ISF or Importer Security Filing besides receiving penalty mitigations for Bio-Terrorism Act related fines. Cargo processing is expedited at FAST lanes at Canadian and Mexican borders for CTPAT certified highway carriers. Mexican manufacturers stand to benefit from the CTPAT certification with cargo movements expedited through FAST lanes. CBP regularly conducts conferences pertaining to CTPAT that is attended by all the partners. The CTPAT best practices are documented in the Public Document Library in the CTPAT portal that can be accessed by participants. Best practices are also shared through the CTPAT Direct Messaging Communications platform keeping partners updated apropos CTPAT guidelines.

Due to enhanced reputability of the stringent guidelines followed by CTPAT, the CTPAT partners tend to increase their sales with the certification. Besides one of the obvious benefits of the certification is increased supply chain security which translates to the safety of assets and facilities. Licensed U.S. customs brokers, U.S. cargo importers, NVOCCs, sea, land and air carriers, freight consolidators and 3PLs are all eligible for CTPAT certification.