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It is difficult to give an exhaustive list of our Business Forensics’ areas of activity due to the complexity of investigations.  Unexpected things can happen changing the objective and approach of the planned investigation and many investigative tools can be used to obtain the desired objectives. We have however tried to give you an overview of areas that can arise in a company, many times needing outside professionals to deal with them.

We can divide the problems in 2 areas:
Illegal acts
Company policy deviant acts. 

The difference between both is not always clear-cut and many times, depend on the legislation of the countries a company is operating in but also on the scope of company policies, laws and regulations. We will give you an overview of the most common acts committed in occupational fraud:



Corruption (Bribery, Economic Extortion, Illegal Gratuities, Conflicts of Interest)


Corruption is a constant problem for companies dealing with organized procurement or intermediaries in big government contracts. Although this practice happens foremost in government entities, private companies are also victim of this fraudulent behavior.
 
Some positions are very vulnerable for this kind of occupational fraud like for example procurement, sales or accountancy and the detection of these “arrangements” are not always evident. Kickbacks can be given in different forms and are not easily traceable. Procurement fraud can bring financial loss and potential regulatory scrutiny to your organization. Fraud can include bribery, bid rigging, price fixing, market division, product substitution and spare parts overpricing. 
 
Bribes can be given in forms of gifts, holidays, money, favors, or even in nature. The perpetrators of corruption schemes know the risks and know how to protect themselves from being discovered and a thorough investigation process is needed. 

The B.E.A.R. ADVANTAGE
B.E.A.R. BUSINESS FORENSICS are experts in working with organizations to screen potential risk positions, investigate possible corruption schemes and obtaining evidence of such, helping organizations reduce losses and minimize risks.

Want to know more about our business forensics service, contact us by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or use one of the phone numbers top left.
 

 

POWER AND POSITION ABUSE


Employees spend most of their time on work premises. A lot of couples have met in their job place. If many positive things happen at work, it is also a fertile ground for misbehavior among employees. Especially, power struggles involving abuse of hierarchy position, particularly if management abuses its position of power. This abuse can happen in different forms like for example sexual harassment, bullying, discrimination etc.
 
This creates not only problems among employees but can also put the company at risk with probable civil lawsuits, sometimes criminal charges against the suspected perpetrator producing bad reputation and decrease of productivity. These cases however are not always easy to solve because physical evidence is hard to find and the fear of suffering repercussions make it difficult for the victim(s) or witness(es) to come forward. 

The B.E.A.R. ADVANTAGE
B.E.A.R. BUSINESS FORENSICS are experts in working with organizations to investigate these oftentimes delicate matters. We have a lot of experience investigating these cases using advanced interviewing and interrogation techniques and other technological advanced techniques.
 
Want to know more about our business forensics service, contact us by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or use one of the phone numbers top left.
 


VANDALISM AND SABOTAGE


Company employees do not always protest their dissatisfaction verbally but many times use other ways to harm their superiors or company. Especially during negotiations with unions, vandalism and sabotage can be used to put pressure on management. This behavior can be of great harm for companies. One can imagine how much damage sabotage can do to a public utility company distributing electricity if somebody decides to damage the main electricity supply generator. Civil lawsuits that can follow can amount in the millions.

The B.E.A.R. ADVANTAGE
B.E.A.R. BUSINESS FORENSICS are experts in working with organizations to detect the perpetrators of such acts. Forensic analysis of the vandalized or sabotaged scene in conjunction to behavior analysis of employees can be important tools to get to the perpetrator(s). 

Want to know more about our business forensics service, contact us by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or use one of the phone numbers top left.
 


INDUSTRIAL ESPIONAGE


Information can make the difference between success and failure; if a trade secret is stolen, the competitive playing field is leveled or even tipped in favor of a competitor. Although a lot of information-gathering is accomplished legally through competitive intelligence, at times corporations feel the best way to get information is to take it. Economic or industrial espionage is a threat to any business whose livelihood depends on information.
Economic or industrial espionage commonly occurs in one of two ways. Firstly, a dissatisfied employee appropriates information to advance their own interests or to damage the company or, secondly, a competitor or foreign government seeks information to advance its own technological or financial interest. “Moles” or trusted insiders are generally considered the best sources for economic or industrial espionage.
Pretexting is another form used in industrial espionage. Pretexting is a form of social engineering in which an individual lies about his identity or purpose to obtain privileged data about another individual. A pretexter may then use this data to engage in identity theft or corporate espionage.
The damage generated by the lost or sharing of vital company information with competitors can be devastating for the victim organization and companies that depend on information need to be very keen on this aspect.

The B.E.A.R. ADVANTAGE
B.E.A.R. BUSINESS FORENSICS are experts in working with organizations to put anti espionage programs in place, preventing such actions from happening or allowing to detect any wrongful behavior by the employee or any person within the company having access to the vital information. 

Want to know more about our business forensics service, contact us by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or use one of the phone numbers top left.
 

 

ASSET MISAPPROPRIATION (CASH AND NON-CASH)


Almost 90 % of the cases with occupational fraud involve some kind of “ASSET MISAPPROPRIATION”. Different methods are used by employees to embezzle organizational assets. Some of the most popular are:
 
 

Category

Description

Examples

Skimming

Any scheme in which cash is stolen from an organization before it is recorded on the organization’s books and records

·         Employee accepts payment from a customer, but does not record the sale, and instead pockets the money

Cash larceny

Any scheme in which cash is stolen from an organization after it has been recorded on the organization’s books and records

·         Employee steals cash and checks from daily receipts before they can be deposited in the bank

Billing

Any scheme in which a person causes his employer to issue a payment by submitting invoices for fictitious goods or services, inflated invoices or invoices for personal purchases

·         Employee creates a shell company and bills employer for services not actually rendered

·         Employee purchases personal items and submits invoice to employer for payment

Expense reimbursements

Any scheme in which an employee makes a claim for reimbursement of fictitious or inflated business expenses

·         Employee files fraudulent expense report, claiming personal travel, nonexistent meals, etc.

Check Tampering

Any scheme in which a person steals his employer’s funds by intercepting, forging or altering a check drawn on one of the organization’s bank accounts

·         Employee steals blank company checks, makes them out to himself or an accomplice

·         Employee steals outgoing check to a vendor, deposits it into his own bank account

Payroll

Any scheme in which an employee causes his employer to issue a payment by making false claims for compensation

·         Employee claims overtime for hours not worked

·         Employee adds ghost employees to the payroll

Cash register disbursements

Any scheme in which an employee makes false entries on a cash register to conceal the fraudulent removal of cash

·         Employee fraudulently voids a sale on his cash register and steals the cash

Cash on hand misappropriation

Any scheme in which the perpetrator misappropriates cash kept on hand at the victim organization’s premises

·         Employee steals cash from a company vault

Non cash misappropriation

Any scheme in which an employee steals or misuses non-cash assets of the victim organization

·         Employee steals inventory from a warehouse or storeroom

·         Employee steals or misuses confidential customer financial information

  
 
 
Although many times cash asset misappropriations do not represent big amounts, they go on for long periods of time, which at the end will cause high losses for the employing organization.

The B.E.A.R. ADVANTAGE
B.E.A.R. BUSINESS FORENSICS are experts in working with organizations to put prevention programs into place to minimize the different asset misappropriation schemes. Also do we put into place advanced investigation techniques to detect the perpetrators and locate missing assets.

Want to know more about our business forensics service, contact us by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or use one of the phone numbers top left.
 


FRAUDULENT STATEMENTS (FINANCIAL AND NON-FINANCIAL)


Financial statement fraud, involves the intentional misstatement or omission of material information from the organization’s financial reports; these are the cases of “cooking the books” that often make front page headlines. Financial statement fraud cases often involve the reporting of fictitious revenues or the concealment of expenses or liabilities in order to make an organization appear more profitable than it really is.

Unfortunately, these cases have been increasing in the past decades in big corporations but also in small and medium sized companies. Business owners or managers tend to make their companies appear more valuable than they really are so that they can get a “bonus” during a takeover negotiation or outside financing. 
Non-financial fraudulent statements, like for example fake credentials or internal or external documents also contribute to the creation of false information that serve the benefit of the perpetrator.

The B.E.A.R. ADVANTAGE
B.E.A.R. BUSINESS FORENSICS are experts in working with organizations to analyze the books and compare them with physical evidence. This can be done on a exhaustive basis, like confirmation of inventory but also on random basis like for example evaluating the asset value of houses owned by a bank. We used outside experts and internal professionals to obtain a clear picture of a company’s real value.

Want to know more about our business forensics service, contact us by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or use one of the phone numbers top left.
 


MANAGEMENT PASSIVITY


Active misbehavior by management can be a problem for companies. Corruption, asset misappropriation, fraudulent statements, power abuse are just some of the actions that can cause harm to companies and although not easy to detect will normally leave some kind of evidence linking them to the perpetrating manager.
An area that is not normally taken into consideration but accounts for much higher losses than companies are willing to admit or simply not aware of, is management passivity.
Too many managers “hide” within company structures and simply don’t do the work they were hired for, spending most of their time with controlling tasks in stead of expansion tasks. Even though companies try to counter this behavior with setting “targets”, many times this is not enough and companies might find after only a few years that the manager was just cashing his paycheck.


The B.E.A.R. ADVANTAGE
B.E.A.R. BUSINESS FORENSICS are experts in working with organizations to recruit the right person for the right position. Although qualifications on paper might be adequate, character issues play a vital role in management positions. We will help you find out about a person’s character, ambition and probable red flags through personal interviews with people that can help answer those issues. 

Want to know more about our business forensics service, contact us by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or use one of the phone numbers top left.
 

 

COMPANY POLICIES COMPLIANCE


International operating companies deal with different cultures and legislations. Although most of the times they have local employees and sometimes even managers to help deal with these differences, companies need company laws, rules and regulations, where company norms and ethical values are recorded.

Although these company policies are not easy to articulate, especially for worldwide operating companies, they are even harder to apply due to the number of cultures and nationalities working for a company worldwide and the number of vendors a company indirectly has to take responsibility for.  Imagine for example the reputation damage for a company whose supplier uses young children in his labor force.
 
Training is an important component to overcome this problem but controls should be applied to make sure that the company is not assuming risks that it knows could become a problem.


The B.E.A.R. ADVANTAGE
B.E.A.R. BUSINESS FORENSICS are experts in working with organizations to set up ethical statements and checking vendors and employees for compliance with internal company policies and regulations. Surprise visits can be done to vendors and personal interviews with company employees and management.

Want to know more about our business forensics service, contact us by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or use one of the phone numbers top left.
 

 

PERSONAL INTEGRITY ISSUES


Employees and especially management are the image of a company. Dealing with people is not an easy task and although all the efforts can be done during the selection phase, a company cannot predict how a person will evolve in his job. This is the reason why many companies have put into place control programs to check on the integrity of their staff. An 'overdose' of rules can however damage an organization's 'immune system.'
It is understandable that organizations concentrate on giving instructions. They are obliged to communicate new laws and rules clearly so that management and employees understand them. This however is not sufficient. Integrity is about effectively grasping and accepting the roles and responsibilities one has within and outside an organization. It is also a question of intentions, ambitions, skills, capabilities, and commitment. 
Organizations that invest in increasing integrity from the inside boost their immunity to seductions and pressures. Rather than constraining managers and employees, a boost of integrity actually induces, captivates and inspires management. 
It focuses not only on the letter and spirit of laws and regulations but also reaches to the sources and inspiration from which sound corporate governance emanates. A system based on “prevention” is far better prepared for rapid changes in the outside world than one relying on “medication”. 
A company needs a valid and authentic set of core values and a description of behavioral norms, an organizational culture based on openness, honesty, security and where integrity plays a prominent role in job selection and promotion. 

Recent decades have been tough on Integrity in business environment. Pressure for higher profits has been considered more important than the integrity of the actions used. This however is difficult to sustain in the long run and companies need a strong integrity policy.


The B.E.A.R. ADVANTAGE
B.E.A.R. BUSINESS FORENSICS are experts in working with organizations to write a set of rules, laws and Integrity programs that will help companies and employees deal with the integrity risks that they are confronted to.

Want to know more about our business forensics service, contact us by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or use one of the phone numbers top left.
 


MORE


B.E.A.R. BUSINESS FORENSICS can be applied to all kinds of internal and external situations that arise in the business field. Especially matters that shareholders, owners, buyers etc. would like to see investigated, matters that affect the value of their assets.
B.E.A.R. is a trusted partner that will do the job in all confidentiality and with due diligence, based on highly qualified professionals with the most advanced techniques in business forensics.

Want to know more about our business forensics service, contact us by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or use one of the phone numbers top left.
 

 
 

 
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