Fraud

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Fraud Corruption DetectionThe Corporate
Healthcheck
Fighting Corporate Fraud (Brussels - April 2008)
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Thinking globally, acting locally
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Core Business Expert management of networks and
our portfolio of businesses Individual
businesses with strong strategies underpinned by
VBM Core Strength Using the strength of our
portfolio of businesses through network
synergies, joint procurement and key account
management Key Assets The consignments we
carry, our brand reputation and the pride of our
people are the most important assets we manage
Growth Strong sustainable growth, with
opportunities identified in China, India, Brazil
and other emerging markets, together with
European Mail Networks
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The TNT Fraud Profile (1)
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The TNT Fraud Profile (2)

• Includes a Tolerance Table
• Profiles methods of committing fraud
• Full of International Flavour
• Removes mixed messages

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Our Fraud Triangle
SFR - Healthcheck
PROACTIVITY
TNT EXPRESS FRAUD PROFILE
Fraud-i Online
Investigations
REACTIVITY
AWARENESS
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A 3 step approach .
Awareness Addressed through an awareness module
(Fraud-i Online) and the roll-out of the TNT
Integrity Programme and the Integrity
Toolkit Proactivity Addressed through the
design, development and introduction of the
TNT Security Financial Review (SFR or
Healthcheck) and supported by the TNT Express
Fraud Profile Investigation Addressed through a
core central team of experts administering
best investigation practice strongly supported
and co-ordinated throughout the Express
organisation
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The Integrity Programme ..

• Material containing
• Booklet on TNT Business Principles
• General Presentation
• Interesting articles
• (Business Bulletin article a.o.)
• Poster on TNT Business Principles
• Training material (presentation, dilemma
  examples)
• TNT Business Principles and summary, related
  policies procedures

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Objectives ..
Primary Objective Identify transactions/entities/r
elationships which are indicative of
potential fraud, corruption, malpractice or
abuse of internal controls / procedures Key
Learning Cyclical monitoring, detection,
interpretation and corrective action Cost
Efficiency Targets specific fraud and corruption
risks   Delivers consistent, comparable and
easily classified results   Avoids
contentious data protection issues   Proactive
Indicator The Healthcheck (SFR) is designed to
provide early detection, avert possible
damage to reputation and provide a basis for
corrective actions.
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Phases

• PHASE KEY STEPS
• A Identification A1 Understanding the fraud
  risks in the business (Fraud Profile)
• A2 Refining existing tests to match the
  particular Fraud Profile and
• capture of relevant data from the
  Business Unit (according to
• standard specifications)
• A3 Running automated
  tests and performing cursory (level 1)
• research
• A4 Identification of
  significant red flags and incorporation into a
• diagnostic report
• B Interpretation B1 Examination and evaluation of
  the results with Business Unit
• Security and Management where appropriate
  (with additional case research if necessary)
• B2 Creation of case reports
• B3 Development of action plans

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The process ..
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SFR Tests

• A number of tests are applied to the datafiles,
  based upon the Fraud Profile
• (and normally number 12-15 tests on each vendor /
  document pattern)
• These include, but are not limited to
• Sequential invoicing patterns
• Round number patterns
• Unusual variances
• Apparent dominant suppliers
• Apparent dependent suppliers
• Repetitive sums
• Document service description
• Duplicate payments
• Low purchase order coverage
• Large EOY transactions
• Early or advanced payments
• False VAT numbers
• Address and telephone number comparison
• Duplicate name / entity comparison

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The diagnostic ..
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The value of document inspection .
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A structured process .
LEADSHEET
FILENOTE
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Managing Expectations
Enquiry Executive Summary

• 1 Standardised investigation results
• 2 Working to a common theme
• 3 Understand the implications of timely
• enquiry management reporting
• 4 Accountability for the Business Unit, within
• the Business Units
• 5 Doing the right things and doing things right
• 6 The enquiry executive summary addresses
• Summary of findings
• Scope
• Interviews and additional evidence
• (i.e.. documentary, statements, electronic etc.)
  
• Observations, conclusions recommendations

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Desktop Investigative Research ..

• Company details
• Ownership / shareholders
• Board members
• Historical survey
• Annual accounts
• Company Registration details
• Updated status
• Information in the marketplace
• Properties / Equities
• Bank account
• Trademark Patent Activity
• Prejudicial events
• Credit liquidity

• Individual details
• Ownership / shareholders
• Board members
• Financial situation
• Personal details
• Information in the market
• Properties
• Bank Accounts
• Trademark / Patent
• Activities
• Prejudicial events
• Credit / liquidity

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Metsasearch engine warnings
1 Golden Rule NEVER use the same engine just
because "it is just a quick search"

• 1. Results should be based ONLY on a percentage
  of what is available on the internet qualify
  with additional investigation
• 2. Local (knowledge) is best . as are the
  engines. If local is not known, try a combination
  of global local (ie. www.google.es for Spain)
• Use different engines according to what is to be
  found
• Create a database, keep it alive and help ii to
  evolve update with new links and ideas
  continuously

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Some sources