White-Collar Crimes in Small Businesses

When most people think of white-collar crime, they think of Enron, Bernie Madoff, Martha Stewart or the father of the Ponzi Scheme – Charles Ponzi.

It is all relative.

While some crimes cost companies millions of dollars, some crimes can cause a small business thousands of dollars (which seem like millions to them).

White-collar crime includes lying, stealing or cheating in a business setting. In total these crimes cost the United States around $300 billion (yes that’s with a “b”) a year.

Internal Theft by Employees

Often, a small business has one person overseeing a certain department, this is fine usually, except for billing. A good example would be a single bookkeeper who has check signing ability, prepares the accounting and financial statements in addition to reconciling the books. Allowing one person to have that much authority could expose the company to potential money laundering schemes and embezzlement.

1. Have two signatures required on company checks to ensure that more than one person is aware of company disbursements.

2. Have an independent accountant perform audits without informing the bookkeeper.

Vendor Fraud

Vendors also commit white-collar crimes, usually various types of consumer fraud.

Here are a few common examples:

-Your company bought a bulk order of pens at a significantly lower price, but after delivery learns the pens are only half full of ink.

-Your company gives a deposit to a vendor for supplies but soon after rendering payment that vendor has packed up shop and left with your deposit, nowhere to be found.

To help prevent these types of fraud:

1. Create an approved list of vendors that are tried and true.
2. Have a policy in place where a new vendor needs to be approved..
3. Do your own investigation –search the Better Business Bureau for their rating and any past issues.

If you liked this post, maybe you’ll like ways to secure your small business. 

Ryan Kelly Chamberlain – Social Media Aids Nationwide Man Hunt

As we learned after the Boston Marathon Bombing, social media was a very helpful outlet for law enforcement in their ability getting pictures, descriptions and other helpful information to and from the public.

In previous posts (like my blog series – Giving Your #Selfie Away) the social media landscape is changing how we search for people, not in terms of friends and family, but for people that are wanted for criminal acts nationwide – such as Ryan Kelly Chamberlain

While many details are still unknown regarding the current nationwide manhunt for Ryan Kelly Chamberlain (San Francisco, CA.), it was reported that his apartment contained explosives and the materials to build them.  Chamberlain is considered armed and dangerous and should not be approached.

According to public information, Chamberlain (42 years old) is wanted on suspicion of possessing explosives.  On Saturday, multiple agencies, including hazardous materials crews, FBI and local police searched Chamberlain’s apartment while he was not home.  After the search the found explosive materials were found and sent to an FBI lab for testing.

The affidavit and search warrant used to enter Chamberlain’s home currently remain sealed.

He was last seen on Sunday driving a white 2008 Nissan Altima with Texas or California license plate numbers 7FQY085 or BX9M042.

If these events are local, in this case the San Francisco area, if your smartphone is enabled (here’s how on an iPhone) people can receive alerts directly to their phone about emergencies and amber alerts.

Also by hash tagging (adding a “#” in front of a word on social media outlets) it can be searched.  Just by searching #RyanChamberlain, I was able to see many private citizens releasing information to their respective circles, who in turn share that information or post with their circles, thus reaching a much larger and more meaningful audience than the local news station. Even this blog becomes another avenue.

Chamberlain is considered armed and dangerous.  If you have any information on him or his whereabouts – no piece of information is too small – please call the police at 415-553-7400 or 911.