Mid Year Review – You Might Be Involved in a Fraud

We’re halfway through the year and it seems like a good time to review some of the unusual indicators of potential fraud we’ve seen. You won’t find most of these in your accounting textbook, but that doesn’t make them less valid. In the tradition of Jeff Foxworthy’s “You might be a redneck” segment, if you have these indicators, you might be involved in fraud. Note that none of this is legal advice except that I strongly recommend that you don’t commit fraud.

1. If your boss uses phrases like “orange jumpsuit” or “no one will go to prison for this”, you might be involved in fraud…and someone is probably going to prison.

2. If your CEO’s significant other is a wannabe pop/rock or hip hop/rap star, you might be involved in fraud.

3. If you work for a cryptocurrency exchange, you might be involved in fraud. I know that’s a bold statement, but come on, there’s been a lot of fraud in failed crypto exchanges. Even the best of them are very opaque when it comes to reporting.

4. If you or someone you know stars on one of the Real Housewives shows, you might be involved in fraud.


6. If you see ghosts, whether it be ghost cattle, ghost receivables, ghost cash, or ghost services, you might be involved in fraud.

7. If at any point you type or receive messages over text, Whats App, or similar services that include phrases similar to: “If anyone finds out we’re doing this” or “If we get caught”, you might be involved in a fraud.

8. If at any time to feel the need to speak in code like “your 200 chickens have arrived” when in fact you are not referring to chickens, but to something else, like bitcoin, you might be involved in a fraud.

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