Fraud Summit


In the second panel of FRAUD SUMMIT, the largest event in Romania dedicated to the imprint of fraud on the business environment in our country, Marian Hurducaș and his guests addressed the topic of corporate fraud, white-collar crime, from both a psychological and a legal point of view.

Ionuț Neacșu is a psychologist within IGPR, with over 18 years of experience in criminal investigations and 5 years as a negotiator in crisis situations. He participated as a negotiator in rescuing people who threatened suicide, barricades, or deprivation of liberty.

Andrei Croitoru is Managing Associate act Botezatu Estrade Partners. He specializes in white collar crime, provides advice, and represents large domestic and international corporations in corruption and organized crime, money laundering, tax evasion, fraud, work-related crimes, industrial and work accidents. Andrei also assists local and international companies in preparing and implementing compliance programs and response plans to prevent allegations of complicity at the management level and, in general, to avoid criminal liability of companies and their management.

Ionuț Neacșu: Fraud-prone behaviors can be detected!

In short, fraud = theft. Since childhood, we are being taught that stealing is a bad thing. Therefore, only bad people steal. But, according to Ionuț Neacșu, evil has no substance of its own, but is fuelled by behaviours such as greed, selfishness, or disrespect for ourselves and for those around us.

At the same time, we know that fraud occurs when 3 conditions are met at the same time:

1. The opportunity arises, ie that context which favours the development of fraud.

2. There is motivation, ie the factors that cause a person to commit fraud.

3. The fraudster also has a justification, which he uses to excuse the act he commits.

The human brain does not have the ability to process the entire amount of information it receives from the body, through the 5 senses (olfactory, visual, gustatory, auditory, perception). He recognizes and processes the information that validates his own beliefs, values, ​​and habits – that is, what we learn in the “7 years at home” and the behaviours that we see or have ourselves and those close to us.

Ionuț Neacșu answers, in turn, a series of important questions for any manager or entrepreneur:

Why does an employee decide to cheat his own company?

How do I, as an employer, recognize suspicious behaviour? Are there any signals?

Can the human mind be shaped?

Andrei Croitoru: Internal fraud’s lack of awareness leads to an underestimation of the resources allocated for preventing and combating fraud in the organization.

From a legal point of view, the approach to corporate fraud is complex and can have several connotations, not only from a criminal point of view: there may be violations of anti-competitive or sectoral regulations, whose supervisory authorities are administrative. Therefore, reporting irregularities to the authorities should be done with specialized legal assistance.

Moreover, the fraud’s complexity is directly proportional to the size of the organization or the size of the activity of the organization in which it occurs. Fraud can be committed against the organization but also, apparently, for the benefit of the organization, through fraud directed against other organizations.

How do companies react when they find out that they have been defrauded by their own employees? First, once the fraud is discovered, the organization will have to decide what to do with the fraudster, the fraud, and the damage. According to Andrei Croitoru’s statements, in most cases, companies choose to solve the problem of occupational fraud internally, on the grounds that the internal disciplinary mechanisms are sufficient, they are afraid of negative publicity, they have no evidence, or they are insufficient.

According to the 2020 Report to the Nations by ACFE, the Association of Certified Fraud Examiners:

» only 49% of cases of occupational fraud are reported to criminal prosecution bodies, increasing compared to 2018, when the percentage was only 31%.

» 81% of frauds are committed by men, with damages 3 times higher than those committed by women.

» 58% of frauds are complex, with 2 or more perpetrators involved.

» 51% of cases of occupational fraud were initially detected because of reports made by third parties, including employees (45%).

What are the factors that favour fraud?

What are the steps a company can take to prevent crime?

How do specialists recommend that irregularities be reported to specialists?

What is fraud’s main engine?

Are we witnessing the evolution of fraud or fraud opportunities?

The answer to the above questions and more, you will find them watching episode number 2 of FRAUD SUMMIT 2021 – an event organized by SPIA, the leader of the Romanian new generation of private investigators, with the support of act Botezatu Estrade Partners, as Main Partner, together with wall-street.ro and Kiss FM, Media Partners.

If you want a fraud-proof business, email us: contact@spiaromania.com

Watch the entire episode in audio and video format or on any of the platforms below:

» Anchor FM: https://anchor.fm/businessimunlafrauda/episodes/2–Frauda-CORPORATE-FRAUD-SUMMIT-2021-EP-2-e190iam

» Spotify: https://open.spotify.com/episode/5kUPMvklceXwFpCLRezWee?si=sb8xkSIDQT2LuAeyDAV7Hw

» YouTube: https://youtu.be/WXv9mb6THW8

Listen the 2nd episode HERE:

Watch the 2nd episode HERE: