Going After the Big Frauds - Harry Markopolos - Fraud Magazine - March/April 2012 — Transcript

Full transcript

1. 0:03[Music]
2. 0:06we never stopped the frauds when they
3. 0:08were small well you have to stop them
4. 0:10when they're Mouse sized you don't let
5. 0:12them get to be rat sized or dog sized or
6. 0:14deer sized for giraffe size we let them
7. 0:17get to become elephant sized and it's
8. 0:19time we as Certified Fraud examiner's
9. 0:22start elephant hunting there's plenty of
10. 0:24elephants roaming out there they're
11. 0:25stampeding all across America and we
12. 0:28know we need to start elephant hunting
13. 0:29we need to go after the big frauds we're
14. 0:32we less about who's stealing from the
15. 0:34cash register and worry more who's
16. 0:36stealing at the top of the organization
17. 0:37because it's a management lead frauds
18. 0:39from the c-level sweep then it costs
19. 0:41more damage to this country and they did
20. 0:43and these people are hard to hunt but
21. 0:46you have to have the intestinal
22. 0:47fortitude to engage and do battle and
23. 0:50I'm telling you why you have to do that
24. 0:51these are people packable resumes they
25. 0:55never been caught at anything before
26. 0:57maybe speeding ticket might be the most
27. 0:59they've ever done they've got a peccable
28. 1:02resumes went to the best schools live in
29. 1:04the best neighborhoods sit on all the
30. 1:07right charitable foundation boards good
31. 1:09citizens political donors
32. 1:11philanthropists if they're the ones who
33. 1:13robbed this nation blind cuz we weren't
34. 1:16in the fight we weren't looking high
35. 1:17enough we were hunting small game and we
36. 1:21wouldn't we weren't big-game hunting
37. 1:22it's time to do some big-game hunting
38. 1:24now pretty clear that there's lots of
39. 1:26game out there it's easy to hunt these
40. 1:29people have never been hunted before
41. 1:30they've been unmolested on hunted for
42. 1:32years decades if you will it's time to
43. 1:35do some elephant hunting
44. 1:40too often we look for the technological
45. 1:42solution the easy computer solution
46. 1:45let's a software check for fraud
47. 1:47investigate the anomaly since
48. 1:48management-by-exception and too often we
49. 1:51do it chained to a desk or worse
50. 1:53we carry a CrackBerry and the CrackBerry
51. 1:56is good administratively but you spend
52. 1:59too much time on it that's why I don't
53. 2:00care one thing if you really want to
54. 2:03fight fraud who commits fraud well
55. 2:05humans I've yet to see a computer
56. 2:07indicted and sent to prison it's humans
57. 2:11that do that they do the bad stuff and
58. 2:13so I think the only way to hunt to to do
59. 2:15that to attack those frauds is to get
60. 2:17out there and talk to people what you
61. 2:19have to do is develop a question set
62. 2:20based on your industry when you need to
63. 2:23do is study all the literature all the
64. 2:25convictions all the academic journals
65. 2:27and come up with a question list of what
66. 2:29are the frauds in my industry that I
67. 2:31have faced that are known to the world I
68. 2:33have to master those and I've develop my
69. 2:35own personal question set based on those
70. 2:37frauds and I need to get out there in
71. 2:39the field talking to a real life human
72. 2:42employees and asking these questions
73. 2:44says and when you get a hit you have a
74. 2:46case and you know take down a fraudster
75. 2:55you
76. 2:55[Music]