Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
48 Cards in this Set
- Front
- Back
Reactive |
occur from notification that a crime has occurred. May result from insiders, investigators, or auditors |
|
Proactive |
investigator initiated investigation. In many money laundering schemes, the investigator may discover the financial crime accidentally. sometimes a general suspicion could lead to probing and discovery of an illegal financial activity.. |
|
case evaluation |
this stage requires an investigator to sort through superfluous information and extract essential elements of a case/allegations |
|
Criminal systems |
end goal of prosecution is imprisonment of the offender, fines, or both prosecutor is the attorney for society |
|
civil system |
end goal of prosecution is to repair the damage to the victim civil attorney represents the individual |
|
solvability factors |
these are the characteristics of an incident that help to predict how successful an investigation will be |
|
weighted solvability factors |
weighted system recognizes that not all factors are equal in determining solvability. weights are determined based on the statistical research and anecdotal expereince |
|
un-weighted solvabiltiy factors |
do not assign any particular importance to individual factors each factor is relativly important as the next most un-weighted solvability schemes are based on anecdotal |
|
Why plan? |
To maintain focus: focus your efforts in line with the goals of the investigation Control growth: proper management of evidence, manage unforseeable changes Promote adaptability: circumstances surrounding the investigation may change and the plan must have some built-in adaptability |
|
3 commonalities when developing an investigation plan |
1. competence: conduct a thorough analysis of the potential issues involved so a determination can be made as to what additional skill sets and resources are needed to obtain the information that is sought. 2. corroboration: no information should be taken at face value. all facts must be reviewed and verified. 3. common sense: do the allegations, witness accounts, and evidence make sense? |
|
investigative plan |
1. verify the occurence 2. alleged violation 3. identify elements of the allegation 4. identify the targets of the investigation 5. assign the appropriate investigator 6. collect facts/conduct interviews 7. review the information and verify 8. documentation |
|
financial planning |
allows for better consideration of resources, techniques, within a specific budget |
|
personnel planning |
identify key personnel requirements-may need to consider the use of outside experts such as technology experts, law enforcement, security, experts |
|
technology planning |
what technologies do you need to invest in? consideration of advances in technology may need to address compatibility issues |
|
flow of investigation process |
background, understand the case, intelligence gathering, investigative due diligence, intelligence gathering |
|
background |
goal is to build knowledge for the case. two reasons for conducting background work in financial crimes a myriad of fraudulent schemes exist businesses are evolving constantly |
|
understand the case |
become familiar with the business structure, business processes are there any deviations in operations? document your progress using visual aids such as flow charts, organizational charts ets. investigate the industry: look at industry standards regulations |
|
intelligence gathering |
often unrecognized is the element of the human mind and individual behavior fraud diamond: rationalization, opportunity, motivation, capability |
|
6 traits in the personality of a fraudster: positioning |
ones position or function within the organization |
|
6 traits in the personality of a fraudster: intelligence and creativity |
one must be smart enough to exploit the weakness in internal controls |
|
6 traits in the personality of a fraudster: ego |
one must have a strong ego and great confidence that he will not be detected |
|
6 traits in the personality of a fraudster:coercion |
coerce others to commit or conceal fraud |
|
6 traits in the personality of a fraudster:deceit |
successful fraud requires effective and consistent lies |
|
6 traits in the personality of a fraudster:stress |
the individual must be able to control his stress as committing the fraudulent act and keeping it concealed can be extremely stressful |
|
investigative due diligence |
comprises of information intelligence insight and access it explores issues beyond the information found in ledger books and contract caluses focuses on in-depth background investigation, vulnerability assessment, corporate personality, and business intelligence gathering (business and media database research, public records searches, direct contact with government, industry, personal, and confidential sources) |
|
surveillance |
provide information readily visible, but iwthout a paper trail conduct covert surveillance of the suspect, suspects associates, and the victim |
|
database searches |
private databases: databases to which access is restricted include both government sources and commercial sources public databases- no restrictions, includes property tax assessment records, civil and criminal histories |
|
trash collection |
discarded reeipts offer proof of purchases, discarded packaging information no expectation of privacy in discarded items |
|
types of evidence |
testimonial evidence- actual witness testimony in open court documentary evidence- obtained during investigation demonstrative evidence- graphs real evidence- physical, tangible |
|
best evidence |
the original peice of evidence untampered and unchanged |
|
process of proof |
evidence- inference-proof/conclusion the ability to prove a case depends on both evidence and how well the strength of the inferences is |
|
inference |
the persuasive effect of evidence inference relies on logic |
|
relevance |
evidence is relevant if it tends to either prove or disprove an issue in contention |
|
deductive argument |
a form of argument that works from general statement to a specific conclusion; top down logic 1. major premise 2. minor premise 3. conclusion ( all mammals are animals all dogs are mammals all dogs are animals ) |
|
inductive argument |
drawing conclusion from evidence, bottom up logic less precise than deductive logic several observations are combined to reach a conclusion |
|
hasty generalization |
conclusion not logically justified by unbiased or sufficient evidence |
|
fallacy or exclusion |
exclusion of evidence from consideration |
|
explicit inferences |
inferences made by the investigator based on explicit evidence "sandra stole money, she was caught on tape" |
|
implicit inferenes |
not directly states, but what is expressed in understood hidden inferences are implied the investigator hints at the evidence and it is up to the judge to discover the inference |
|
why use analysis tools? |
visualization of complex relationships identify people who are powerful and influential study behavior of illegal networks improve the ease with which the investigations are conducted |
|
matrices |
collection of rows and columns used to model relationships between different types of objects square matrix-represent a single object under study rectangular matrix- represents a relationship between more than one type of object the difference between a square and a rectangle matrix is the ability to relate unmatched items matrices lack visual representation and therefore are often used by analysts as preliminary steps in the analysis process |
|
link diagram |
relationships between objects in a link diagram are represented through nodes the lines connecting nodes are referred to as edges easy to construct, easy to interpret circles represent people, lines represent relationships rectangles or squares can be used to represent organizations |
|
social network analysis |
used to investigate social structures in a network through the use of graph theories |
|
density |
the proportion of direct ties relative to the total number possible, the close the ratio to 1, the denser the network |
|
connectivity |
the ability of each actor within a network to reach other actors |
|
closeness |
a measure of distance between nodes, members of an organization, nodes that are a great distance from each other are more vulnerable to disruption |
|
degree |
total number of ties one actor has within the organization |
|
betweenness |
the number of relationships that lie between other actors and a particular actor |