Fraudulent Documentation: Fraudsters’ Secret Weapon ... How to Disarm Them

"Fraudulent Documentation:
Fraudsters’ Secret Weapon
... How to Disarm Them”
May 29, 2013
Special Guest Presenter:
Robert Baier, Handwriting Services Int’l

Copyright © 2013 FraudResourceNet™ LLC

About Peter Goldmann, MSc., CFE



President and Founder of White Collar Crime 101

Publisher of White-Collar Crime Fighter
Developer of FraudAware® Anti-Fraud Training
Monthly Columnist, The Fraud Examiner,
ACFE Newsletter

 Member of Editorial Advisory Board, ACFE
 Author of “Fraud in the Markets”
Explains how fraud fueled the financial crisis.


About Jim Kaplan, MSc, CIA, CFE
 President and Founder of
AuditNet®, the global resource
for auditors
 Auditor, Web Site Guru,
Internet for Auditors Pioneer
Recipient of the IIA’s 2007
Bradford Cadmus Memorial
Award.
 Author of “The Auditor’s
Guide to Internet Resources”
2nd Edition

Robert Baier Introduction






Bob Baier is a certified handwriting expert and a
certified forensic document examiner (CDE)
He has 3 Degrees -- AS, BS, MA. CDE, CHA
Bob is a certified NY State law enforcement instructor
and trains in the areas of document examination,
identity theft, bogus checks, statement analysis, the
criminal mind and handwriting as well as overall
handwriting analysis.
Mr. Baier has been on live radio nationally and has
been on the Television Shows “Inside Edition” and
“Law Talk TV”. In Sept 2005 he was featured in
ESPN magazine for an analysis he did regarding an
extreme sport athlete.


Introduction cont’d


Bob is the author of the book “Identity Theft – Prevention for the
College Student.” This is considered by some to be “The finest and
most complete book on the market today regarding Identity Theft
and the easiest to read with its conversational style.” Cecile Moore
N. Attleboro, MA. This book has been used to train law
enforcement in at least four different states.



Bob’s new book, “GPS for Success (Goals and Proven Strategies)”
is co-authored with Steven Covey author of the book “7 Habits of
Highly Effective People”, Dr. John Gray author of the book “Men
are from Mars Women are from Venus” and Les Brown nationally
known speaker and author.
Bob is one of only 3 people in the country who can do training on
both Statement Analysis and Handwriting Analysis.




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Disclaimers


The views expressed by the presenters do not necessarily represent the
views, positions, or opinions of FraudResourceNet LLC (FRN) or the
presenters’ respective organizations. These materials, and the oral
presentation accompanying them, are for educational purposes only and do
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6

Today’s Agenda
 Introduction: Fraud Statistics: A Growing Fraud
Threat
 Auditing for Fraud: Standards & Essentials
 Writing Habits
 Bogus Checks
 Numbers
 Request Writing DDI
 Anonymous/Disguised Writing
 Your Questions
 Conclusion

Fraud: The Big Picture
According to major accounting firms, professional fraud
examiners and law enforcement:

 Fraud jumps significantly during tough economic times
 Business losses due to fraud increased 20% in last 12
months, from $1.4 million to $1.7 million per billion dollars of
sales. (Kroll 2010/2011 Global Fraud Report)
 Average cost to for each incident of fraud is $160,000
(ACFE) Of Financial Statement fraud: $2 million
 Approx. 60% of corporate fraud committed by insiders (PwC)
 Approx. 50% of employees who commit fraud have been
with their employers for over 5 years (ACFE)

The Auditor’s Role

 IPPF Standard 1210.A3
 Internal auditors must have
sufficient knowledge of…available
technology based audit techniques
to perform their assigned work


Deception and Writing


Common Documents Subject
to Fraud, Forgery, Crime etc.

Wills, Deeds, Company Contracts, Checks,
Mortgages, Financial Statements (car
dealerships), Vendor Disputes, Receipts,
Office Memos, Notes, Writings on Bathroom
Walls, Inside Company Trucks and more.


Document Examination

 Writing is a learned skill
 We learn through repetition (until a habit)
 Every mature writer has his own set of
unique handwriting habits
 These are unconscious habits
 Then compare the writing habits of the
two writers
 Natural variation in writing (range)

Polling Question 1

Writing is a learned skill
A. True
B. False
C.


Bogus Checks

 You can examine 7 things in only 10
seconds concerning the check itself -- to
determine if it is real.
 We are not talking about looking at any
writing on the check.
 Where exactly on the signature line do you
sign your name.
 No such thing as a signature line on a
check.

Check Signature Line


Perforation

 All “real” personal
checks have a
perforation on one of
the 4 sides.
 Only exceptions are
some payroll checks
and government
checks.

Microprinting


Front of Check


Back of the Check


Numbers
 Our numerals are based on the Arabic
numerals.
 Formation of numerals is part of
penmanship training
 Numbers are rarely disguised
 Writers don’t realize that numbers are
identifiable


Numbers
 Types of fraud cases involving
numbers:
 Raising the amount of a negotiable
instrument
 Doctoring the books in embezzlement
cases
 Forged or counterfeit checks.
 Identification of a writer by his numbers

Numbers
 Raising the amount of a negotiable instrument


Polling Question 2
The numbers we use are based on ________
Numerals
A.
B.
C.
D.

Latin
Arabic
American
Roman
E.


Embezzlement


Altered Documents


Check Washing
 Some chemicals are used on checks to erase all of the
ink. “Washing”
 Washed checks have a slimy feel.
 Side lighting will show differences in “sheen”
 Use “Uni ball Signo 207 Pen”


Identifying a Writer by Numbers
 Because people are
creatures of habit, they can
be identified by the way that
they separate their numbers
when writing dates.
Slashes, Dashes, Spacing

 Number formations can
be identified


Anonymous/Disguised Writing
 70% of Anonymous writings in the workplace
are female
 Worst language and most offensive drawings
are also females
 25% of Anonymous writings in the workplace
are done by the person reporting the incident
 #1 change is Slant then Capital letters
 Cursive to Printing or vice versa
 Start from the back and work forward

Proportions


Request Writing

 Dictate, Duplicate and Isolate
 Create Words for Combos and
Connect.


Fredie Forger


Polling Question 3
______ percent of anonymous writing in the
workplace is by females
A.
B.
C.
D.

50%
25%
70%
None of the above
E.


Is this a photocopy of an
original receipt?


Handwriting Analysis







Brief history
Handwriting is brain writing
Handwriting is a science
Graphology/Handwriting Analysis
Forensic document examiner (testifies in
court)


Uses of Handwriting
 Forgery Detection
 Law Enforcement (profiling depts)
 Job Placement (5000 US)
 Jury Selection
 Tenant Selection


Uses of Handwriting (cont’d)

 Self Improvement
 Grapho-Therapy
 Relationship Compatibility
 Help Children
 Disease Detection


Europeans

 European Countries
use handwriting
analysis extensively
 US Customs Agent


Taking Statements
 If you can “weed out” fraud suspects you
will save time. “Speed Read” your
suspects.
 Change your statement sheet. Same
heading with directions but where they
write should be a blank paper with no
lines.
 Office personnel help out

Polling Question 4
Handwriting analysis is useful for which of the
following…
A.
B.
C.
D.

Law Enforcement (profiling depts)
Job Placement (5000 US)
Jury Selection
All of the above
E.


Statement Analysis Training
 Personal Vocabulary
 25-50-25 story
 Try to Tell the Truth
 Writing Changes When Lying


The Criminal Mind


The Criminal Mind







No Margins – live with no boundaries
X’s at baseline-thinking about death
Smiley face – deception, do not trust
Covering or scratching things out – deceit
If obscure name-do not trust


Criminal Mind


Criminal Handwriting Traits


Polling Question 5
Covering up or scratching out portions of written
documents is often a sign of…
A.
B.
C.
D.

Correction of honest errors
Deceit
Professional editing
None of the above
E.


Covered a Lot

 Handwriting Habits, Bogus Checks,
Numbers, Request Writing,
Anonymous, Disguised Writing, Hate
Crimes, Tremor, Criminal Mind,
Identity Theft etc.
 Diff. Between Doc. Exam and
Handwriting Analysis

Resources
 Book – Forensic Handwriting Examination
www.reedwrite.com/publication.html
808 528-1112 (Hawaii)
 Taking Statements – Miranda Fitchette
www.forgeryexaminer.com
 www.handwritinguniversity.com


Questions?
 Any Questions?
Don’t be Shy!


Thank You!

Website: http://www.fraudresourcenet.com
Jim Kaplan
FraudResourceNet™
800-385-1625
jkaplan@fraudresourcenet.com
Peter Goldmann
FraudResourceNet™
800-440-2261
pgoldmann@fraudresourcenet.com


Thank You

Bob Baier
Forensic Document Examiner
www.expertdocumentexaminerweb.com
1-888-460-3828


Coming Up Next Month
 "An Expert’s Advice on Establishing
an Organization Wide Fraud Policy”
on June 5
 "How to Catch Expense
Reimbursement (T & E) Cheaters
Using Data Analysis"Effective AntiFraud Controls, on June 18
 "Ethics for Auditors: Understanding
Current Issu es in Financial
Integrity” on June 26
http://www.fraudresourcenet.com

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