Former Enron CFO to Speak on Gray Areas at ACFE Fraud Conference in Dubai

SPEAKER INTERVIEW

Interview with Andrew Fastow, former Enron CFO and convicted fraudster,* and keynote speaker at the upcoming 2017 ACFE Fraud Conference Middle East, January 29-31

What are you most hoping attendees will take away from your presentation?
This is my first time to speak in this region, so I am looking forward to the opportunity. I am hoping attendees will take away that there is more than one way to think about fraud. Fraud can often occur even when people don’t realize they are committing fraud, and this is something that fraud examiners need to be thinking about. It’s not just about bribery, embezzlement and faking numbers or accounts, but about certain behaviors. I hope people will gain some insight into the behaviors that can lead to fraud.

Why do you think the Enron scandal and message you share remains relevant today?
It remains relevant because of its size and its magnitude, and also the spectacular way and speed with which it imploded. It’s scary because almost no one saw it coming. It is also particularly relevant today because of the human behaviors exhibited there; they are universal human behaviors. Some people are just better at controlling them than others. It really is a story about human nature more than a story about business. I think that’s why it resonates with people. Almost everyone is guilty of this type of behavior at varying degrees and at some point professionally or personally. A comment I often get after my presentations is, “I could think of a dozen situations I have been in where I rationalized things, and now I am second guessing what I did.”

When you are delivering your presentation and sharing your story, are you most trying to highlight the controls that were not in place or red flags missed, or do you think you could potentially sway executives to think twice before crossing blurry ethical lines?
I hope that people walk out of my talk confused. I am not there to lecture them on what the answers are. I want them to walk out thinking, “Whoa, I was thinking everything was black and white, but there really are many shades of gray.” It is not just the black area that leads to fraud, but the gray area as well.

Read more about Fastow and other keynote speakers at ACFE.com/MiddleEast.

*The ACFE does not compensate convicted fraudsters.

Fraud Fighters are Tackling a Pandemic

FROM THE ACFE MIDDLE EAST FRAUD CONFERENCE

By Emily Primeaux
Assistant Editor, Fraud Magazine

"In case you haven't noticed, and I'm sure you have, fraud has become pandemic around the world," said Jeffrey Robinson, bestselling author and international expert on organized crime and fraud, in his keynote session at the 2016 ACFE Fraud Conference Middle East in Dubai, February 14-15. "I mean seriously, it has become pandemic. If fraud were a disease, political leaders of all our nations would have to declare a global health emergency."

And why has fraud spread like this? According to Robinson, it's not getting the attention it should. "If you are Bernie Madoff and you've stolen 50 billion dollars, yeah, that does get an awful lot of attention." But it only garnered attention after the fact — after $50 billion had been stolen and even though the clues were there all along.

"The problem is that except for you guys, the ACFE, no one's really paying attention to it." Robinson went on to highlight law enforcement's priorities. The No. 1 priority for law enforcement is terrorism, then drug trafficking, followed by firearms and then sex offenses. "Yet fraud, if you put a monetary value on fraud, it's second only to drug trafficking of all the crimes. It's right up there with drug trafficking. But it's really far down on the list of crimes that get investigated."

But people aren't reporting fraud either. Businesses that get hit by fraud feel embarrassed and don't want to report it to their shareholders. Individuals that suffer a loss from fraud feel violated or stupid, and decide to forget about it because of the feeling of foolishness for allowing it to happen in the first place.

Robinson referred to this as a "two-way street crime." For a fraudster to be really successful, the victim has to cooperate in some way, and that's why victims "feel so stupid." For example, take a victim of a hacking that used the word "password" as their password. They've easily set themselves up to become a victim of fraud.

Robinson explained that the best defense any company can have when it comes to fraud is total transparency. Remove the theory of "unshareable problems." Pay attention to your employees. Help them. Tell your people that you're going to share in their problems.

Robinson finished by expressing the value of fraud fighters. "If it weren't for you — and I am so high on this organization, because you're really the only people standing in the way of the fraudsters and havoc — if it weren't for you asking at every turn ‘How come nobody died?' the 21st century is guaranteed to belong to the fraudsters. You're my heroes."

Read more about the first-ever ACFE Middle East Fraud Conference on Fraud-Magazine.com.

The ACFE’s Top 3 New Year’s Resolutions for 2015

GUEST BLOGGER

Courtney Pedersen
ACFE Communications Coordinator

I have yet to decide my 2015 New Year’s resolutions. And well into the New Year, I am still drawing a blank. In 2012, I resolved to have a “real” job six months after college graduation (check). In 2013, I resolved to buy a home in the crazy Austin, Texas, market (check). And, in 2014, I resolved to live healthier so I joined a gym (check. Well, I joined a gym; whether or not I am active in said gym is not worthy of discussion). Thankfully, as always, the ACFE is prepared this New Year to do more for you in 2015 than ever before.

1. Offer you even more online resources
   With online self-studies, a fraud resource library, Fraud-Magazine.com and more, the ACFE provides a variety of online resources to give you access to cutting-edge anti-fraud knowledge, whenever and wherever you need it. In 2015, the ACFE will expand these offerings, including YouTube videos that are shareable with colleagues and clients, career videos, podcasts and more. 

2. Redesign Fraud-Magazine.com
   Fraud-Magazine.com will become a responsive site in 2015 and will boast a fresh, new design. This means that whether you are on a computer, tablet or mobile device, your Fraud-Magazine.com experience will be seamless and user-friendly. The site will also offer more online content and make reading the latest in fraud prevention and detection even easier.

3. Host the largest anti-fraud conference ever, and offer more live events and seminars
   The 2015 ACFE Global Fraud Conference is on schedule to be the world’s largest anti-fraud conference to date with more than 3,000 expected to attend in Baltimore. Not only are we concentrating on making this experience memorable and informative, we have also been concentrating on growing our international events. Last year the ACFE held 12 international events, compared to eight events in 2013. This year, we plan to continue to offer international members the opportunity to network and learn in a seminar environment in cities like Dubai, United Arad Emirates, San Juan, Puerto Rico, and more.

The ACFE’s New Year’s resolutions will help all members this year in the office and abroad. Whether you have decided on your resolution or are still pondering like I am, just remember that the ACFE is committed to doing more for you in 2015.