Stop loss english

THIEVERY –IS BLACK HOLEOF YOUR BUSINESS

USING INFORMATION TECHNOLOGIES FOR REV EALING OF FRAUD

© 2015. Stop-Loss. All rights reserved.

Not dealers, but storekeepers have the best prices.M. Varakin

Everything in our country is common. So, if it belongs to public, it belongs to me too!

It is my uncle who has sent it. He works at a shoe polish factory. That’s why he has a lot of it! “Kanikuly v Prostokvashino” (“Holidays in Prostokvashino”)

Don’t be hardworking – you won’t earn much. Be sly and steal – you’ll earn much more!

Gleb Androsov, an inscription under a caricature

The country has all the conditions for you. Starvation. Devastation.Real people go through vein.

“Korona Rossiyskoy Imperii” (“The Crown of the Russian Empire, or Once Again the Elusive Avengers”)

You’re not a host at your plant, but a master. Use everything, take everything!

Idiots work to their point of exhaustion.Clever people work until there’s nothing left.

You guard it – you have it. You don’t guard it –you don’t have it. People in our country say: “Everyone shall guard what belongs to us all”.

M. Zhvanetsky (“What do you guard, comrade?”)

What is a man? A parasite, a drunkard …A thief, if I dare say so.

“Svatovstvo gusara” (“The courtship of a hussar”)

EVERYTHING IS JUSTIFIED

THE PROBLEM IS NOT JUST IN MONEY

BESIDES EVIDENT LOSS OF INCOME,

THEFTS ALSO LEAD TO EVENTS

THAT CAN SEEM NOT RELATED,

BUT IF YOU LOOK CLOSER YOU FIND A THEFT

RIGHT IN THE EPICENTER OF THE MESS.


IF YOU HAVE NOTICED THE FOLLOWING, PROBABLY THE SWINDLERS AND “RECIPIENTS” OF ILLEGAL DIVIDENDS ARE WORKING ALL OVER THEIR SCHEMES:

• Thieves consider it an unattainable luxury to make business processes transparent because their opportunities for illicit gain will disappear. Therefore specific occasions, unusual situations and extraordinary events occur and broader powers are required more often.

• Scammers need reasons for their activity, so they will criticize management and founders. The level of loyalty and respect of employees who inevitably hear on the grapevine these pejorative statements will be lowered.

• Not only those involved in seedy dealings, but those who are called for violations (for mess and confusion) as well are weakened. The scammer substitutes the leader.



• Thieves need to muddy the waters of business, so they do everything to make their activity and documents nontransparent . It becomes impossible to perform management, to make business processes, regulations and standards work, to acquire precise and consistent statistics and data.

• Financial records forged for concealment will sooner or later bring claims from revenue authorities, and it will cast a shadow over the founder.

• One fool makes many: more and more persons are involved into such schemes, and all the participants watch each other’s backs.

• There are defaults hidden by excuses such as reasons why it’s impossible to make something, extra workload or unavailability of resources.



• Too often the attempts to sort out the situation face the cobwebs of conflicting data.

• The honest, loyal and productive employees are bullied and made to leave by means of moral pressure, slander, making him or her a can carrier or just by snowing a person with uninteresting, non-core or meaningless work.

• You encounter resistance when trying to organize activities and notice degradation of any activity that is already well-organized.

• In a similar market situation your competitors do their business way better than you, whether in profitability, established administration, products quality etc. It means your employees either work so little or steal so much.

HOW TO DISCLOSE AND STOP FRAUD

STOP-LOSS – AUTOMATED SOLUTION FOR SEARCHINGAND DETECTION OF THEFTSFor many people stealing from the employer is just another ordinary thing. Russian companies have a sea of troubles with it as well. Using the Stop-Loss system you can automate the process of disclosing and stopping thefts. This information system is notable for:• Integrity• Productivity• That it cannot be inattentive• That it can operate large amounts of data

HOW TO DISCLOSE AND STOP FRAUD

POSSIBILITIES OF APPLICATION OF STOP-LOSS SOLUTION

The thing is that thieves forge documents for their frauds, and these documents inevitably contain inconsistencies that can be identified by conducting data analysis.

The Stop-Loss system searches are conducted according to the set timetable, which is based on data obtained from various information systems. The analysis is carried out using algorithms of suspicious documents detection and a knowledge bases of fraud schemes. In case of detection of signs of thefts the system generates and directs reports to appropriate authorities describing all identified discrepancies and indicating probable fraudulent scheme which can be seen from the nature of “weird things” found in the documentation.

HOW TO DISCLOSE AND STOP FRAUD. EXAMPLES

FRAUD SCHEME: OVERSHOOTING OF PRICES OF VENDORS

This scheme is widely used in the trading companies, when employees of Purchasing Department enter into collusion with vendors. As a result, the vendor supplies his or her products at a higher price, and the employee of the Purchasing Department receives “rake-off”. This scheme has a negative impact on profitability, and it is especially critical in a period of erosion of purchasing power of people.

Scheme disclosing: You can detect the use of this scheme in analysis of system data of electronic exchange of documents with vendors for which each vendor sends his complete “electronic price list” – in this way you can organize a knowledge database to compare prices of different vendors, detect facts of purchases at inflated prices and obtain statistical data about who is the most “loyal” to expensive vendors in the Purchasing Department.


FRAUD SCHEME : COINCIDENCE OF PAYMENTS

This scheme is characterized with payments of the same amounts effected twice to the same counterparty. In fact only one payment is made to the counterparty, and the second is made on the account of the scammer. To cover this there is a record about purchase from a big vendor on one of the accounts that is rarely checked. The payment to vendors allows providing supporting documents if necessary.

Scheme disclosing : This method of fraud can be disclosed by searching of payments of the same amounts in the accounting system and comparing data on such payments with the data presented in the statements downloaded from the banking system. These data will point to the real recipient of the duplicate payment.


FRAUD SCHEME : OVERSTATEMENT OF NORMS OF CONSUMPTION OF RAW MATERIALS

This scheme is used at production sites and can be expressed in growth of volume of disposal of raw materials in the production of finished products. For example, the commercial kitchen produces Ossetian pies. A standard recipe includes consumption of 0.0027 kg of sugar for one pie. If a technologist “changes” the recipe even a bit by putting 0.027 kg of sugar, this non-significant change will allow to dispose a ton of sugar per month. Finally, the accountant shall agree with the vendor about supply of a non-existing ton of sugar and make payment – and all participants of the scheme will have profit.

Scheme disclosing : You can track the changes in recipes or process cards (you will need to have their “reference” samples not corrupted by the violators). Another indicator is a significant change in the statistics of consumption of raw materials along with minor changes in the production of finished products. Also the disposal of raw materials before its delivery will indicate the fraud scheme. The changes in the cost disproportionate to the growth of prices of vendors is another alarm signal.


FRAUD SCHEME : OVERSTOCKING

“Rake-off” from vendors can provoke the Purchasing Department to create stocks of raw materials or products much larger than it is optimal. Besides, if the warehouse is overstocked it prevents safety control, and the loss of multiple units becomes negligible.

Scheme disclosing : The mechanisms of remains and/or ADR management in the system of enterprise management which use data on the remains and turnover can be really helpful. It is important not to leave such mechanisms merely as information tools for managers who place orders, but to perform the gap analysis of statistics on the costs of raw materials or turnover of products and analysis of data on actual purchases and to identify the employees who condone overstocking the most actively.


FRAUD SCHEME : “NATURAL LOSS” OF PRODUCTS

There are rules for withdrawal of goods due to shrinkage loss, natural damage (vegetables/fruit) or breakage (for products in glass containers). Scammers can manipulate these norms in such a way as to adjust the loss to standards.

Scheme disclosing : If the withdrawal in storage or trading system are constantly in the upper limit of normal (there are no “jumps” up and down in different time periods, for example seasonal), you can check withdrawals which are sharply different from usual ones in dates and amounts, as the scammers can make a sort of “schedule” of execution of such transactions (once a week, once a month), when they draw the balances and adjust the numbers to those in standards.


FRAUD SCHEME : OVERRATING THE COST OF WORKS

A sticky fingered accountant can decide to “make hay” and overrate the cost of works executed by your company for another legal entity or entrepreneur. For example, the cost of some services in accordance with the Statement of Acceptance is 38.150 rubles. When it’s time to draw up the invoice the accountant writes in a different amount – for example 39.150 rubles. If someone notices it the accountant will easily ascribe this error to fatigue, then apologize and draw up the invoice again.

If by the nature of activity of the company there is a large flow of such documents, the losses can be much bigger than 1.000 rubles.

Scheme disclosing : This scheme can be easily identified by comparing the amounts from invoices with the Statement of Acceptance or any other additional agreements and contracts that specify the scope and cost of works.

THE INFORMATION SYSTEM IS AN

INCORRUPTIBLE ANALYST

With the growth of company (holding) it becomes impossible to control all the flows of movement of material assets for searching of fraud schemes – it is beyond the limit of human capability, and internal audit cannot track all the precedents.

The Stop-Loss system is a tool that provides monitoring of suspicious activity on all aspects of management and provides a quick, competent and varied analysis for specialists of internal audit and managers.

Therefore the Stop-Loss opens another resource for financial growth and prosperity.

STOP-LOSS –ELECTRONIC GUARD OF YOUR ASSETS

• Contains a knowledge base about a variety of abusive activities and methods of their settlement

• Receives and stores data from various systems, saves history of changes of documents

• Analyzes data to determine the presence of signs of abuse• Finds every single case of abuse• Writes reports to specific directors with the results of analysis and

recommendations on the settling• Requires performance reports on settling of the situations• In case of default sends the report to the upper levels of the line of

management• Upon receipt of the performance report the system repeats the analysis• If the violations have not been eliminated, the system sends report to the

upper levels of the line of management (up to founders)

STOP-LOSS –ELECTRONIC GUARD OF YOUR ASSETS

Works on its implementation provide consideration of the specific aspects of the enterprise:

Stage 1. Investigation in order to identify fraud schemes, “developed” by “experts” of this enterprise

Stage 2. Investigation of software tools and flows of documentation reflecting the movement of material assets

Stage 3. Development of solutions to oppose thefts by administrative and technical measures

Stage 4. Preparation of Technical specifications for improvement of the system with due regard to specificity of maintenance of documentation and identified fraud schemes

Stage 5. Improvement, configuration and implementation of Stop-Loss system

ELECTRONIC GUARD OF YOUR ASSETS –

Stop-Loss.CO

ORDER YOUR ENTERPRISE INSPECTION NOW!

DMITRY L IALIN+7 (926) 094-39-39JAUER@STOP-LOSS. CO

BORONIN SERGEY+7 (906) [email protected]

BORONINA OLGA+7 (903) 226-56-77OBORONINA@STOP-LOSS. CO

© 2015. Stop-Loss. All rights reserved.

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