Picture with punchline:- Scamsters Beware, 2010 is Over!

The year 2010 was full of Scams & Frauds across the globe. The article having below picture; which is posted on a blog by Dilip Naidu sir had really caught my glare.

Make 2011 brighter more progressive!

The photo seems to be clicked in Pune city & the punchline poster mentions the courtesy of Nana Chudasam.

“Scamsters Beware, 2010 is Over!” …  Now the people wants to speculate forthcoming years to be less affected by risks of frauds & scams. The comments on Dilip Naidu Sir’s post elaborates much more insights than the article itself. I enjoyed going through the picture as well as comments & I hope you shall emphasise the worthiness of reading through them.

Courtesy: http://dilipnaidu.wordpress.com/2011/01/08/make-2011-brighter-more-progressive


Interestingly fake email sent on behalf of RBI (Reserve Bank of India) via & by fraudualant mail ID

These days, I’ve developed an interim interest in checking out SPAM emails in my mailbox. There are plenty of mails to browse through. be it UK Lottery Scams, International Monetary Fund (IMF) fund Transfer, swiss bank transfers, Break-up notifications from some chick n what not…..

The Symbol of Indian Rupee approved by the Uni...

Indian Rupee Image via Wikipedia

I was very much surprised to read a mail from RBI PLC (rbifundstransfer@rediffmail.com). It didnt take me more than 1/1000 th of a second to think …

“since when RBI has become a PLC”….. Reserve Bank of India Private Limited Company !!!

To add -up some more spice to my entertainment, the mail had email-ID smitha.a24@gmail.com in TO field instead of my emial-ID…. Seems like some Indian Name is used as signatory authority.

ha hhaa haa…… Do go through the mail as copied below…… the language is so funny…. just hang on to the email ahead        🙂


<<<<<<< =================================== >>>>>>

<<<<<<<  =================================== >>>>>>


India ‘s Central Bank


This is to bring to your notice that we have received a cheque of 500,000 Pounds (FIVE HUNDRED THOUSAND POUNDS) on behalf of TOYOTA AUTOMOBILE COMPANY in United Kingdom from (DIPLOMATIC MR MORGAN RICHIE) Pacific courier company some days ago, But we could not inform you due to the investigation that was going on about the cheque of 500,000 pounds

This is a very huge amount and has you know that there is a lot of cheque frauds going on all over the world, that is why he took us some time to confirmed that the cheque we received is okay because we don’t want to be fraud in our bank.

We contact the British Government to be aware of this issue should be incase we later face any problem or fraud regarding this payment but the British Government give us 100% assurance that if any problem occur they will be responsible for it and they agree with us.

On behalf of Reserve bank of India (RBI) want to congratulate you has we have confirmed that the cheque is 100% okay that is why we inform you to let you know that cheque is with us.

This is the information and the batch details that i we received from the pacific courier company in other to claim the money for you….

Ref Number: EUM DN 0508-9T6

Batch Number: EUM QY-3LJ4

Serial Number: 20910












Looking forward to read from you soonest.

Your’s Sincerely,




Bloomberg says: Identity Theft Fraud Falls 34%, Victims Pay More (8-Feb-2011)

Identity theft fraud fell 34 percent last year to $37 billion, the lowest since Javelin Strategy & Research began tracking data in 2003.

About 8.1 million identities were stolen in 2010, the fewest since 2007, according to a Javelin study released today. Out-of-pocket costs to victims rose to $631 in 2010 from $387 in 2009, according to the Pleasanton, California-based market- research firm.

Image representing Bloomberg as depicted in Cr...

Image via CrunchBase

“There are fewer cases of identity fraud than there were in previous years. The bad news is there’s more consumer cost,” said James Van Dyke, Javelin’s president and founder. “That’s really due to a shift in the types of fraud.”

Debit-card fraud accounted for 36 percent of crimes committed with cards already in circulation in 2010, up from 26 percent in 2009. Debit-card fraud is generally more expensive for consumers than credit card because zero-liability policies, which protect consumers from losses if their cards are stolen, are less common for debit cards, according to the study.

“There’s been a shift from credit to debit in all kinds of transactions, and unfortunately as you have more debit transactions you have more debit fraud,” said Van Dyke.

New-account fraud, in which a criminal opens an account in the individual’s name rather than exploiting an existing account, also contributed to the rise in costs. Out-of-pocket losses for consumers on new-account fraud averaged $1,267 in 2010, up from $787 in 2009.

Consumer Education

Better consumer education and the success of systems that monitor customer accounts for unusual activity have helped to reduce fraud rates and losses, according to Erik Stein, a vice president of Brookfield, Wisconsin-based Fiserv, a financial services technology company and a sponsor of the survey.

High-income households, or ones earning $150,000 or more a year, had the highest fraud rate of 7.3 percent compared with an average of 3.5 percent across all income levels, the study said.

Consumers should regularly check their free credit reports and monitor their bank and credit-card statements for unfamiliar charges, said Linda Sherry, a spokeswoman for Consumer Action.

“I’m always amazed when I hear from people who don’t read their credit-card statement, they just pay the bill,” said Sherry, who is based in Washington. “If they don’t catch something right away it can be an endless torment.”

Opinion Access Corp., a Long Island City, New York, research firm, surveyed 5,004 people by phone between September 2010 and November 2010 on behalf of Javelin.

To contact the reporter on this story: Elizabeth Ody in New York eody@bloomberg.net

To contact the editor responsible for this story: Rick Levinson at rlevinson2@bloomberg.net.

India’s Black Money 2011: Finance minister Pranab Mukherjee said the tax department would launch prosecution proceedings in relevant cases from the names of account holders given by foreign banks

The news headline in Livemint & Hindustan Times reveals latest update on India’s Black Money…… here is the full article

*****  The PIL claims this is a “colossal failure to enforce the law” due to influential politicians in various parties being involved in the offences. *****

New Delhi: Ahead of a Supreme Court hearing on a public interest litigation (PIL) on black money, finance minister Pranab Mukherjee at a press conference on Tuesday detailed the government’s strategy to deal with black money and said the tax department would launch prosecution proceedings in relevant cases from amongst names of account holders given by foreign banks.

Pranab Mukherjee, Indian politician, current F...

Image via Wikipedia


The government has the names of account holders in Liechtenstein’s LGT Bank and information given by German banks.

Mukherjee refused to name account holders citing secrecy clauses attached to legal frameworks with different countries which are used to obtain information on Indian account holders in foreign banks.

The information, however, has been given to the Supreme Court in a “sealed envelope,” Mukherjee, said. The names would be revealed when the tax department launches prosecution proceedings in relevant cases, he added.

The Supreme Court on 27 January resumes hearing a PIL on black money being held in European banks by Indians, initiated by senior lawyer Ram Jethmalani along with some former civil servants, who want the court to examine the issue as well as the falling standards of administration on the part of the government.

The PIL claims this is a “colossal failure to enforce the law” due to influential politicians in various parties being involved in the offences.

According to Mukherjee, the press conference had its roots in a suggestion by Prime Minister Manmohan Singh asking the finance ministry to place in public domain the strategy to deal with black money. Singh had made the suggestion during a recent cabinet meeting which discussed amendments India had signed with its tax partners to elicit information on foreign bank accounts of Indians.

During a hearing on 19 January, the Supreme Court took a tough position against the union government, asking it why it was not disclosing the names of Indian citizens who allegedly stashed away large sums of unaccounted money in European banks from 2002 to 2006.

The main pillar of the government’s strategy to deal with the problem is to amend tax treaties with different countries to allow for information on bank details to be shared.

Indian Money

Image via Wikipedia

According to Mukherjee, a change in international opinion in the wake of the 2008 financial crisis had played a positive role in amending treaties. 

The G-20 countries had decided to jointly take on countries or tax jurisdictions, which were reluctant to share critical information, Mukherjee, said.




The Growing Menace – “Frauds & White-Collar Crime” – by Vinod Khurana

(This paper is an effort to explain that sniffing out frauds is an art and needs a mind-set, which comes through Experience and mere knowledge of accounting principles and standards may not help)

The fertility of man’s invention in devising new scheme of fraud is never ending, the new business methods and the speed, which are making business dynamic, are also making them vulnerable to financial fraud. At the same time technology dependency through ERP application generates unrealistic expectations, where as there is thick fog behind the screen, leaving much to be desired, thus creating ideal environments for the wrongdoers to exploit the weaknesses for their personal gains. Therefore Frauds and White-collar crimes in the corporate sector have been increasing at an alarming pace, which of late was the primary concern at Government Establishments

Fraud is a generic term; No definite, explicit or formal statement can be laid in defining fraud. Fraud, theft, and embezzlement are terms that are often used interchangeably. Although they have some common elements, they are not identical in the criminal law sense. Theft is referred to as larceny- the taking and carrying away of the property of another with the intention of permanently depriving the owner of its possession. In larceny the perpetrator comes into possession of the stolen item illegally. In embezzlement, the perpetrator comes into initial possession lawfully, but then converts it to his or her own use.

Embezzlers have a fiduciary duty to care for and to protect the property. In converting it to their own use, they breach that fiduciary duty. Therefore theft and embezzlement have different legal consequences.
Fraud is intentional deception, commonly described as lying, cheating and stealing. There is no end to the types of frauds that is why, The Indian Penal Code, 1860 has not strictly defined a fraudulent act, even the courts have not explicitly elaborated and have kept it to them selves to interpret. In nutshell, fraud in books of account comes in two major categories, transaction and statement frauds. Statement frauds involve intentional misstatement of certain financial values to enhance the appearance of profitability and deceive shareholders and creditors, which will also benefit the perpetrator indirectly in one way or the other. World Com and Enron are the outstanding examples of this category. Transaction frauds are intended to facilitate the theft or conversion of organizational assets to one’s personal use and the perpetrator is the direct beneficiary. The recent case of Parmalt, an Italian company, which is also the largest dairy product group in Europe, where the management allegedly produced fake bank documents to claim that it possesses Four Billion Euro in cash that was non-existent and the Bank of America denied the authenticity of a document is an example of transaction fraud.

There are varieties of ways the individual might fraudulently steal or embezzle the company’s assets. The size, complexity and ownership characteristics of the entity have a significant influence on fraud risk factor. In large entity focus on effectiveness of those charged with the governance, internal audit function, and formal code of conduct, are important issues, in small entity may be these factors are not applicable. There fore in general, procedure and methods of White-Collar Crime are based on inherent risk prevalent in the system.

We must understand that fraud is no simple conduct. Most of the white-collar crimes are committed for economic reasons. Loose or lax controls and a work environment that does not value honesty, provides the opportunity. Motivations and opportunities are interactive, the greater the economic need, the less weakness in internal controls is needed to accomplish the fraud. The greater the weakness in control, the less motivation is needed. So when one has the motivation and opportunity, it’s the right recipe for the fraud because; it pays to do it, it is easy to do it, it is unlikely that you will get caught. The opportunities to commit fraud are rampant in the presence of loose or lax management or administrative and internal accounting controls at any corporate. These controls become vulnerable by half hearted and inadequate compliance of computerization and ERP applications. The recent years have seen the frauds growing both in size and complexity, at the same time, well-planned fraud is too complicated to be unearthed by any plain investigating agency.

Fraud may surface through an allegation, complaint or discovery, which may be incidental or looked for. The visible part of a fraud transaction may involve a small amount of money, but the invisible portion can be substantial, so don’t let it go if you have suspicion though small. Surfacing fraud by design involves a proactive approach and methodology to discern fraud that looks for evidence of fraud. Financial auditing generally is not intended to search for fraud but to attest that financial statements are presented fairly. Though in the present time, the pressure is mounting on the statutory auditor to look for frauds, but how far they would succeed would depend on individual’s capability, as detecting frauds is a knack and not mere knowledge of accounting standards and practices.

To understand and appreciate the early warning you got to look for missing link in the chain of evidence that brings the insight to the front. A general belief in the auditing profession is “Most frauds are discovered by accident, not by audits or accounting system design.” This has been repeated so many times by so many accountants and auditors that the general public accepts it as a gospel truth. I do not contribute to this belief, but yes there is no commonly accepted fraud detection methodology. It is a mind-set. The mind-set that I am addressing is not of paranoid, who trusts no one and sees evil everywhere. The mind-set that I talk of, can be described as seeing the wholesome and the hole at once, this knack of seeing the wholesome and the hole all at once comes with experience and the right-aptitude, which requires innovative and creative thinking as well as logic of science, which is able to see the wholesome and the hole together to establish the missing links, that brings the insight to the front and provides pragmatic approach to locate the vulnerable area, read the culprit’s mind and then sniff out frauds.

There are large numbers of frauds, which never hit the radar screen and have stealth in built; and at the same time fraud travel to grow geometrically over the period as a learning curve, if not detected on time. Therefore the prevention through right-controls and early detection by professionals with right mind-set could save fortunes.

Ref: http://www.ifaia.org

US Government Launches Anti-Fraud Site (StopFraud.gov) (via economics)

Here we get to read about the interesting & much required initiative taken by Obama’s US Government by launching StopFraud.gov
a website to educate individuals & reveal various actions of Financial Fraud Enforcement Task Force.


President Obama’s Financial Fraud Enforcement Task Force has introduced a new Web site to educate Americans about how to protect themselves from fraud and report instances of fraud. The site, StopFraud.gov, will also provide information about the task force’s work. Obama established the interagency task force to wage a coordinated effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of f … Read More

via economics

%d bloggers like this: