ISO 37001 Solutions for all industries (Part 2)

In part 1, we discussed how ISO 37001 ABMS can help companies across a wide range of industries, including automotive, aviation and insurance. In this part, we look at how pharma and healthcare, property, IT and telecommunications, financial, oil and energy organisations can benefit from Anti-Bribery solutions as well.

Pharma and Healthcare

Corruption involving pharmaceutical companies and healthcare providers is a major concern around the world. With varied layers and a complicated supply change, corruption can easily gain a foothold even among the most well-meaning healthcare providers and their companies, especially with the industry overburdened with inflating costs and increasing fraud schemes. The World Health Organisation (WHO) estimates that, where losses have been measured and the types of health expenditure have been covered, the average annual cost of fraud totals 7.29 per cent of healthcare budgets (Gee and Button, 2014). For fraudsters, big pharma and healthcare represent a target-rich environment.

Take global pharmaceutical giant GlaxoSmithKline. The company was accused in China of a large-scale bribery scandal, charged with systematically paying bribes and “gratuities” to doctors and hospitals in return for favourable product use and promotion. China was in the midst of an emerging anti-graft campaign and imposed tough penalties against GSK and its executives: In the end, various company leaders were arrested and eventually given suspended prison sentences; GSK was fined $490 million; and the corporation published a statement of apology to the Chinese government and its citizens (BBC, 2014). Read more about pharma and healthcare fraud in “Pharma and Healthcare Companies can Benefit from ISO 37001.”[/vc_column_text][vc_hoverbox image=”8517″ primary_title=”” hover_title=”Pharma and Healthcare Companies can Benefit from ISO 37001″ hover_btn_title=”TAKE ME TO CASE STUDY” hover_add_button=”true” hover_btn_link=”url:https%3A%2F%2Fcrigroup.com%2Fokatsukr%2F2020%2F09%2Febook_Pharma-case-studies-uncovered-due-diligence-lessons-learned.pdf||target:%20_blank|”]CRI Group investigates: Pharma corruption case included CFO[/vc_hoverbox][vc_empty_space height=”45px”]

Property

Property and real estate provide ample opportunity for bribery and corruption, unfortunately. Every step of the process, from zoning and permits to construction and sale or resale represent vulnerabilities and risk. Unfortunately, for as long as there has been a market for buying and selling land, property and resources, there have been schemes that aim to defraud.

Property fraud can be difficult to detect and prevent. Fraudsters often produce fake or forged documents, and there is likely to be collusion involved. For example, a crooked investor might provide kickbacks to an appraiser in return for inflating the value of a property, or he/she may sell a property to a “straw buyer” at an inflated price, with the straw buyer intentionally going into default (and splitting the proceeds of the loan with the fraudulent investor). There are “handshake deals” and “facilitation payments” ready to be made, many in direct contradiction to ethics and the law.

IT and Telecommunications

Internet technology (IT) and telecommunications providers are the engines that help power commerce on a global scale. This massive industry includes companies that provide the infrastructure for communication across multiple countries and continents, including phone and internet providers. Given their role and the technology on which they (and all of us) depend, these services must always be on guard for vulnerabilities to fraud. There is a high risk, however, for bribery and corruption in such a massive market.

In one example, Sweden-based telecommunications provider Telia Company AB agreed to pay $965 million in a global settlement with the Securities and Exchange Commission, U.S. Department of Justice, and Dutch and Swedish law enforcement to resolve charges related to violations of the Foreign Corrupt Practices Act (FCPA) to win business in Uzbekistan. According to the SEC’s order, Telia entered the Uzbek telecommunications market by offering and paying at least $330 million in bribes to a shell company under the guise of payments for lobbying and consulting services that never actually occurred. In another case, Cinergy Telecommunications (based in Miami) pleaded guilty to violating the FCPA after admitting to a role in a bribery scheme aimed at locking down a contract with the state-owned telecommunications company in Haiti. The case included large fines and criminal prison sentences for the key players.[/vc_column_text][vc_empty_space height=”45px”]

Food and beverage

This industry is one of the fastest-moving industry in regards to changes. Consumer tastes, preferences, packaging, manufacturing, storage
and transportation is constantly changing and challenging the industry. It has been years since the news of the horsemeat scandal first broke and rocked
the industry. It is not immune to bribery and corruption either. In recent years, the food and beverage industry was shaken by the scandal, when British confectionary company Cadbury Limited and its owner, Mondelez International, Inc., agreed to pay $13 million to settle charges of violating the internal controls and books-and-records provisions of the FCPA. According to the order from the SEC, the FCPA violations arose from payments their subsidiary in India made to a consultant to obtain government licenses and approvals for a chocolate factory in Baddi, India.

An SEC investigation found that in February 2010, Mondelez, formerly known as Kraft Foods, Inc., acquired Cadbury and its subsidiaries, including Cadbury India Limited, which manufactures and sells chocolate products in India. Cadbury India retained and made payments to an agent to interact with Indian government officials to obtain licenses and approvals for a chocolate factory in Baddi, India. Cadbury India failed to conduct appropriate due diligence on, and monitor the activities of, the agent.

To find out more, click below to read our e-book on how ISO 37001 provides solutions to British companies exposed by Brexit challenges:[/vc_column_text][vc_hoverbox image=”7902″ primary_title=”” hover_title=”Brexit poses bribery challenges but ISO 37001 provides solutions” hover_btn_title=”TAKE ME TO CASE STUDY” hover_add_button=”true” hover_btn_link=”url:https%3A%2F%2Fcrigroup.com%2Fcase-study%2Fbrexit-poses-new-bribery-challenges%2F||target:%20_blank|”]With Brexit posing challenges through new, untested trade deals in various markets, organisations need ISO 37001 – Anti-Bribery Management Systems standard as a comprehensive approach to mitigating risk.[/vc_hoverbox]

Stay updated 

Stay tuned for Part 2 or follow us on LinkedIn, Facebook or Twitter for more industry news and insights.

[/vc_column_text][/vc_column][/vc_row][vc_cta h2=”Subscribe to our monthly newsletter now!”]Sign up for risk management, compliance, corporate and background investigations, business intelligence and due diligence related news, solutions, events and publications.[/vc_cta][/vc_column][/vc_row][accordion_father][accordion_son title=”Who is CRI Group?”]Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.[/accordion_son][/accordion_father][/vc_column][/vc_row]

Filed under: All Industries, Anti-Bribery Anti-Corruption Solution, Compliance Solution, ISO 37001, Resources by admin
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The Role of a Fraud Investigator

Fraud investigators are the front line of establishing the facts of suspected fraud or other unethical business behavior. A fraud investigator’s skillset and wide knowledge of fraud laws, evidence gathering and interviewing make them the go-to expert for investigating insurance fraud, financial fraud, procurement fraud, asset recovery, cyber fraud, healthcare fraud, retail fraud and other areas.

A fraud investigator can either be part of a team of experienced investigators, or the leader of such a team. If part of a team, the fraud investigator generally works with the other team members to handle reports of suspicious activity. If in charge of a team, the fraud investigator would typically report to the head of a department, such as corporate security, compliance or audit. A fraud investigations manager at a typical retail business, for example, would be responsible for the day-to-day monitoring, investigation and resolution of fraudulent activity relating to delays in the repayment and refunds processes. They will take the lead on the implementation of strategies to prevent fraud and financial crime, thereby mitigating risk to the business.

Fraud Investigator Key Functions

Fraud investigators provide subject matter expertise on claims and associated fraud risks, helping to ensure effective resolution of investigations. The effective fraud investigator adheres to relevant security standards, internal and external procedures and legislative requirements. Their role often involves developing and maintaining close working relationships with relevant law enforcement agencies, ensuring that cases are developed and prosecuted to a criminal standard.

When working with an organization in a preventative fashion, a fraud investigator will perform fraud risk assessments across the business relating to both external and internal threats; implementing mitigation measures as required. They also build appropriate fraud prevention and detection processes and implement them. Some fraud investigators manage the day-to-day operation of an expanding fraud team, ensuring that KPIs are met and regular reports produced for the management team. In this capacity, they will also work closely with the senior management team to ensure that operational capacity is correctly aligned to combat a variety of fraud types.

Here are some of the other key functions performed by fraud investigators:

• Evaluate potential fraud indicators and the impact of current fraud trends and make recommendations as to appropriate mitigation.
• Conducting investigations into allegations of fraud, waste or abuse committed by clients against our company
• Reviewing and researching evidence/documents to analyze the overall fact pattern of a claim and synthesize data into a professional report with recommendations
• Preparing and coordinating field assignments to obtain relevant evidence and information
• Conduct objective, fair, thorough, unbiased and timely investigations into allegations of fraud, waste or abuse committed by clients against our company
• Review and research evidence/documents to analyze the overall fact pattern of a claim and synthesize data into a professional report with recommendations
• Prepare and coordinate field assignments to obtain relevant evidence and information
• Coordinate with defense attorneys to provide deposition strategies and use law enforcement resources for assistance
• Manage and priorities a large and varied caseload effectively and efficiently to achieve positive results
• Prepare prosecution packages and restitution proposals.

Responsibilities

As a fraud investigator often wears many different hats, they also have many ongoing responsibilities. These include monitoring transaction reports to identify any suspicious transactions and conducting detailed investigations as required. They must also proactively identify financial crime trends through data analysis and share findings with leadership as and when needed. A few other responsibilities of a fraud investigator include:

• Working to a high standard, meeting strict time-frames whilst working under pressure.
• Communicating directly with customers as part of ongoing fraud investigations through in-app messages or via telephony with potential victims of fraud to establish circumstances and additional information, before providing a fair and logical decision, with supporting rationale.
• Work as part of a team and supporting colleagues as and when required to reduce workload(s).

Personality Traits of a Fraud Investigator

There are some common traits among the most successful fraud investigators. This includes being a self-starter who is results-driven with high levels of self-motivation, energy and initiative. An effective fraud investigator has a proven ability to work under pressure to and meet tight deadlines, without compromising the quality of output. One key trait that can’t be overlooked is the ability to be an effective communicator – a fraud investigator must have excellent written and verbal skills. Here are some other key traits among successful fraud investigators:

• An ability to thrive under pressure amidst changing business priorities
• Effective cost management and analytical integrity
• Experience in leading and developing a team
• Keen interest in stopping fraud whilst considering the impact of how an investigation can impact customers

Knowledge and Skills

A successful fraud investigator brings to the table a broad range of security/ fraud detection and prevention experience. A fraud investigator must be a subject matter expert on fraud for their related field, such as insurance fraud, financial fraud, procurement fraud, asset recovery, cyber fraud, healthcare fraud, retail fraud and other areas.

Many fraud investigators have specialized skills such as:

• Experience of interviewing in accordance with the Police and Criminal Evidence Act following the PACE framework.
• Strong knowledge of cyber risk and common fraud typologies, along with the emerging trends affecting fraud and financial crime.
• Familiarity with key AML, TF, Financial Crime and Sanctions legislation and associated Regulatory Guidance.
• Demonstrated experience working with customers on fraud prevention and detection strategies.
• Sound understanding of the customer impact of a transaction monitoring system; able to balance fraud prevention with the need to provide an excellent customer experience.

As previously mentioned, an effective fraud investigator must have strong interpersonal and communication skills, including the ability to interact with clients, upper management and law enforcement. They also need to have an ingenuity and persistence to obtain case information not readily available with an eye for detail. Dealing with various different cases and different types of evidence requires strong organizational skills. For insurance fraud, investigators must be proficient with the insurance procedures, regulations and investigation methods

Perhaps most important, fraud investigators must set a positive example for their colleagues. They need to be honest and ethical, with high levels of integrity and confidentiality.

A fraud investigator has many different responsibilities, and the role requires an individual with some specific traits. CRI Group’s fraud investigators are experts at uncovering the facts and evidence of a case, but they also implement proactive anti-fraud measures to help an organisation be better protected against future incidence of fraud. Fraud investigators specialise in insurance fraud, financial fraud, procurement fraud, asset recovery, cyber fraud, healthcare fraud, retail fraud and other areas. It’s important that organisations hire trained, qualified fraud investigators who understand the laws, are effective at evidence collection and fact-finding, and are good communicators (since interviewing is one of the key processes of fraud investigation). A fraud investigator might work with a team, or they might lead their team and report to another division. Being able to work under pressure and meet deadlines is critically important. Properly evaluating and securing evidence is of equal importance. CRI Group has only the best expert fraud investigators to meet these challenges.

Are you a fraud investigator? Tell us about your day-to-day job, we would love to hear it.

Who is CRI Group?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organizations. Contact ABAC® for more on ISO Certification and training.

Filed under: Automotive, Aviation, Background Investigation, Compliance Solution, Finance & Professional services Industry, Insurance, Insurance Fraud Investigation, Investigative Solution, IT & Telecommunications, Oil, Gas & Energy, Pharmaceutical & Healthcare, Property, Resources, Third-Party Risk Management by admin
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Q&A session with our CEO: United Arab Emirates fighting Fraud and corruption

Middle east corruption is a threat to the world. The United Arab Emirates (UAE) is a land of complex extremes where fabulous wealth and supercars live right next to staggering poverty. This is generally a recipe for fraud and corruption. However UAE has been talking the right steps towards a fraud free future. This Financier Worldwide Q&A session with our CEO discusses United Arab Emirates role in fighting fraud and corruption. Read the answers to the following questions:

• To what extent have you seen a notable rise in the level f corporate fraud, bribery and corruption uncovered in United Arab Emirates in recent years?
• Have there been any legal and regulatory changes implemented in United Arab emirates  designed to combat fraud and corruption? What penalties do companies face for failure comply?
• Do regulators in United Arab Emirates have sufficient resources to enforce the law in this area? Are they making inroads in this area?
• If a company finds itself subject to a government investigation or dawn raid, how should it respond?
• and much more…

Q. To what extent have you seen a notable rise in the level of corporate fraud, bribery and corruption uncovered in United Arab Emirates (UAE) in recent years?

ANJUM: Some recent, high profile cases have affected companies and countries in the Middle East. Embraer’s bribery scandal, involving sales of its aircraft, included officials in Saudi Arabia, among others. Further, there have been suspicions of corruption surrounding the awarding of the 2022 FIFA World Cup to Qatar, suspicious which have been worsened by allegations of human rights abuses involving migrant workers. In general, however, it is still issues like data theft, e-commerce fraud, information security and other high tech threats that pose serious risks to organisations in the Middle East. We live in an increasingly connected world, so while anti-fraud laws and controls in one country may be robust, a company might find itself doing business abroad in a location where laws and enforcement are more lax, and risk is heightened.

Q. Have there been any legal and regulatory changes implemented in UAE designed to combat fraud and corruption? What penalties do companies face for failure to comply?

ANJUM: the UAE has a strong reputation for being tough on corruption, and a new law enhances this stance. The recently approved, and highly anticipated, Anti-Commercial Fraud Law will strengthen protections of intellectual property rights (IPR) and will impose stricter penalties anon counterfeiters. For example, a fraud offence related to counterfeiting could now result in up to 2 years in prison, as well as a fine of up to Dh1m. Overall, corruption is still a low risk for companies operating in the UAE. Laws against corruption are enforced, and they cover bribery, facilitation payments, embezzlement and other types of fraud and abuse. However, when concerning the Middle East as a whole, there are indications that fraud and corruption are the rise, which means we must be ever vigilant in protecting investments throughout the region.

Q. In your opinion, do regulators in UAE have sufficient resources to enforce the law in this area and fight corruption? Are they making inroads in this area?

ANJUM: When considering the Middle East region, there can be no ignoring war-ravaged areas like Syria, Iraq, Libya and Yemen. It is an understatement to say that countries embroiled in conflicts and crisis usually do not have the resources or manpower to properly prevent and detect fraud. But according to Transparency international’s most recent  Corruption Perceptions Index, a few of the other more stable and affluent countries in the region are experiencing some difficulty preventing fraud, as well. Different factors can contribute to these struggles, be they politics, autocratic leadership, weak laws or judiciary bodies. However, the UAE still ranks as the least corrupt country in the Middle East, and other countries might take heed of the country’s Anti-Commercial Fraud Law and other existing laws, not to mention the UAE’s enforcement measures, as a possible model for future efforts.

Q. If a company finds itself subject to a government fraud and corruption investigation or dawn raid, how should it respond?

ANJUM: A company that finds itself in such as crisis should immediately cooperate with authorities and work quickly to gather the facts. What are the allegations? What is the scope of the investigation? Was the raid expected, or has the company been taken completely by surprise? In the early stages, it is crucial that the company engages in a good-faith effort to be transparent and cooperative. Of course, retaining legal counsel, is a must at this an every stage of an investigation, If an employee or employees have engaged in fraud, the company should support the fact-finding process and let justice run its course. Company leaders should also evaluate their internal controls and ensure that additional fraud or corruption is not occurring under the radar.

Q. What role are whistle-blowers playing in the fight against corporate fraud and corruption? How important is it to train staff to identify and report potentially fraudulent activity?

ANJUM: The statistics on fraud, such as in the Association of Certified Fraud Examiners Report to the Nation on Occupational Fraud & Abuse show that fraud is most often uncovered by tips, more so than audits, surveillance, account reconciliation, document examination and other methods. Accordingly, a company’s own employees are their first line of defence against fraud. But to encourage whistle blowing, two critical measures need to be in place. First, employee should be trained to identify the red flags of fraud, and to know what does, and what does not, constitute fraudulent behaviour. Second, a reporting mechanism should be in place; an anonymous system by which whistle-blowers can submit their tips without fear of retaliation or negative consequences.

Q. What advice can you offer to companies on conducting an internal investigation to follow up on suspicions of fraud or corruption?

ANJUM: In any situation where fraud is suspected, it is crucial that experts be brought in as quickly as possible to help unravel the facts of the case, if the company does not have anti-fraud professional among its staff, It is critical to remember that there are various laws, depending on your country or region, which govern the rules of gathering evidence and interviewing witnesses. Any evidence that is mishandled or collected improperly can negatively impact an investigation and hurt the chances of a resolution. If an investigation is bungled from the start, it is nearly impossible to then ‘wind it back’ and correct mistakes later. Also, if criminal behaviour is suspected, legal authorities should be quickly notified and provided with the company’s findings and reasons for the allegation.

Q. What general steps can companies take to proactively prevent corruption and fraud within their organisation?

ANJUM: Every organisation, large or small, should have a plan in place for preventing and detecting fraud. The first step is to communicate the organisation’s zero-tolerance stance against fraud. An ethical code of conduct, signed by every employee, can be effective in this regard. A fraud risk assessment should be conducted to find vulnerabilities. The company’s hiring policy should include pre- and post-employment background screening. Job responsibilities should include segregation of duties, so that no single employee has too much control over finances or assets. The company should conduct audits and encourage whistle-blowing with an anonymous reporting system. With a comprehensive fraud prevention system in place, business owners can sleep a little easier, knowing that their organisation has reduced risk and increased their ability to prevent and detect fraud.

Speak up – report any illegal, unethical, or improper behaviour

If you find yourself in an ethical dilemma or suspect inappropriate or illegal conduct, and you feel uncomfortable reporting through normal channels of communication, or wish to raise the issue anonymously, use CRI® Group’s Compliance Hotline. The Compliance Hotline is a secure and confidential reporting channel managed by an independent provider. When reporting a concern in good faith, you will be protected by CRI® Group’s Non-Retaliation Policy.

About CRI® Group

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI® Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

Meet our CEO

Zafar I. Anjum, is Group Chief Executive Officer of CRI® Group (www.crigroup.com), a global supplier of investigative, forensic accounting, business due diligence and employee background screening services for some of the world’s leading business organisations.  Headquartered in London (with significant presence throughout the region) and licensed by the Dubai International Financial Centre-DIFC, the Qatar Financial Center-QFC, and the Abu Dhabi Global Market-ADGM, CRI® Group safeguards businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business. CRI® Group maintains offices in UAE, Pakistan, Qatar, Turkey, Singapore, Malaysia, Brazil, China, USA, and the United Kingdom.

Contact CRI® Group to learn more about its 3PRM-Certified™ third-party risk management strategy program and discover an effective and proactive approach to mitigating the risks associated with corruption, bribery, financial crimes and other dangerous risks posed by third-party partnerships.

CONTACT INFORMATION

Zafar Anjum, MSc, MS, CFE, CII, MICA, Int. Dip. (Fin. Crime) | CRI Group Chief Executive Officer

37th Floor, 1 Canada Square, Canary Wharf, London, E14 5AA United Kingdom

t: +44 207 8681415 | m: +44 7588 454959 | e: zanjum@crigroup.com

This Q&A article is based on a 2017 Financier Worldwide interview.

Since 2001, Financier Worldwide has provided valuable information on corporate finance and board-level business issues through its monthly magazine and exclusive website content. As a leading publisher of news and analysis on this dynamic global market, the organisation is recognised as a valued source of intelligence to the corporate, investment and advisory community. More from Financier Worldwide:

• Corporate resilience: managing third party risks, April 2013  |  SPECIAL REPORT: MANAGING RISK 
• Contract fraud: is your organisation at risk?, February 2013  |  SPECIAL REPORT: CORPORATE FRAUD & CORRUPTION
• Fraud & Regulatory Enforcement 2013, April 2013  |  FRAUD & CORRUPTION

Download 2018 annual reviews by Mr. Zafar Anjum, CEO, and Ms. Fatima Farrukh, Compliance professional at CRI® Group.

• Click here to download the review of UAE (Mr. Zafar Anjum, CEO at CRI® Group)
• Click here to download the review of UK (Mr. Zafar Anjum, CEO at CRI® Group)
• Click here to download the review of Pakistan (Ms. Fatima Farrukh, 2018 Compliance professional at CRI® Group)

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ISO 37001 Solutions for all industries (Part 1)

Organisations of all industries, from financial institutions to international energy companies, can gain distinct benefits from ABAC® Certification for ISO 37001:2016 Anti-Bribery Management System standard. The fact is, any company is potentially susceptible to bribery and corruption. Some industries face increased risk – which is why CRI Group’s ABAC® tailors ISO 37001 for companies across a wide range of industries, including automotive, aviation, insurance, pharma/healthcare, property, IT/telecommunications, financial, oil and energy, and others. In today’s business climate, no organisation can afford the risk of being non-compliant and unprotected. The following are some of the issues facing companies in different industries.

Automotive

The automotive industry is a huge worldwide business, and corruption and “pay-to-play” schemes make the headlines on a regular basis. Considering the markets involved include steel, labour, shipping, and others, it stands to reason that the industry can be a target for bribery and corruption problems.

One example is Rolls-Royce Motor Cars, which was punished to the tune of an $800 million (U.S.) global settlement that included a deferred prosecution with the UK’s Serious Fraud Office (SFO), the U.S. Justice Department and Brazilian authorities. The company was found to have engaged in systemic bribery spanning 13 years and 22 countries.  There were multiple schemes in various countries and locations, including Indonesia, Thailand, India, Nigeria, China, and Russia. Learn more in detail about the Rolls-Royce investigation in CRI Group’s case study, “Ethics, Compliance and Rolls-Royce”.

Aviation

The aviation industry is facing a series of pressures that challenge each airline’s profitability and growth. Over the course of the next 20 years, the global commercial aircraft fleet is expected to double to approximately 45,000 aircraft, driven by increased air travel due to an expanding middle class in emerging economies. Risk of bribery and corruption is ramped up, however, by the fact that the supply chain struggles to keep up with demand due to the ramp-up in production, volatility in the geopolitical and economic environment is increasing, and a growing labour shortage is lurking in the background.

Look at major cases like Pakistan International Airlines (PIA), which has been embroiled in a scandal. The allegations involve “organised failure of institutional management, state, and internal controls,” in some cases connected to air accidents with loss of lives. PIA is just a high-profile example of what can result when such corruption goes unchecked, with mismanagement, corruption and kickbacks causing irreparable harm. Read more about the PIA case in the CRI Group white paper, “Organised Catastrophe of Pakistan International Airlines: Major Critical Risk Elements – Mismanagement – Corruption”.

Insurance

While every type of insurance is ripe for fraud, did you know that bribery and corruption are among those schemes in the insurance industry? Fraudsters are opportunists who look for an opening, and that can involve collusion, such as between claimants and adjusters, for example; or bribing officials to provide false reports or otherwise fabricate evidence in support of an insurance claim.  In fact, there are well-known cases of highly organised criminal gangs who have built money-making enterprises on insurance fraud.

With the enormous liability presented by insurance fraud, every organisation should address their risk with proper control systems in place. This includes vigorous anti-bribery anti-corruption measures such as those implemented in ISO 37001. Successful risk mitigation includes conducting regular risk assessments, staying in compliance with all major laws and regulations, and regularly measuring and evaluating results.

Stay updated 

Stay tuned for Part 2 or follow us on LinkedIn, Facebook or Twitter for more industry news and insights.

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Who is CRI Group?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

Filed under: All Industries, Anti-Bribery Anti-Corruption Solution, Compliance Solution, ISO 37001, Resources by admin
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Responsible Management and CEOs

As of 13 August 2020, COVID-19 has affected more than million people globally, including 744,385 deaths, reported to WHO. The virus has also had severe economic implications, leaving organizations facing a unique set of new challenges that can only be summed up in one word: uncertainty. And the only way to navigate these uncertain times is through leadership. This is critical right now, as COVID-19 has magnified societal vulnerabilities. Good leaders can and should lead society into a new “normal”. However when Harvard economist Greg Mankiw argued in a New York Times opinion piece that CEOs are qualified to make profits, not lead society this is somewhat inadequate to the times we live in now. Furthermore, Doug Sundheim, contributor at Forbes, has argued in his article “CEOs Have A Responsibility To Help Lead Society” that Greg’sc arguments just simply do not fit today’s business models. This “shareholder-first business model” originated from 1970, however 50 years on a lot has changed and at a time when over 70% of the largest entities on earth are corporations, not nations, Mankiw’s view is troubling. 

The sheer number of corporations around the world should make us understand that business impacts societies on a global scale; therefore, business leaders have the responsibility to at least consider those societies and how they impact them. The singular management goal of CEOs is no longer about maximizing returns to shareholders, but to support society as business has grown more interconnected and complex. Today, business and society are weaved together in an intricate way, both depending on the other for stability and success. 

The COVID-19 pandemic has also changed businesses and created a surge in the number of positive collaborations between companies, institutions and governments. Our article “COVID-19 prompted innovative leadership” reflects how Mankiw fails to grasp the world in which CEOs are now in fact leading communities and helping societies.

Mankiw asks the reader to imagine having to make an executive decision and how effective and simplier it is when your only priority is profits, and not the wider set of stakeholders – i.e., employees, suppliers, communities, and shareholders. Mankiw defends the idea that corporate management’s mandate should be the narrow self-interest of achieving greater profits for shareholders, not broad social welfare. He goes on to list several additional hypothetical questions. A social-driven leader would have to consider:

• How do you weigh those losses against the gains to the would-be workers at the new plant?
• How much will the closure of the old plant hurt its workers and their community?
• Does it matter whether the new plant is in South Carolina, providing jobs for American workers, or in Mexico, providing jobs for Mexican workers?
• How should you weigh the benefit of electric cars in mitigating climate change? 
• How should you balance these concerns against the interests of shareholders, who entrusted you to invest their savings?

However, the above questions are now part of the many new demands from consumers, talent and governments. 

Consumers have changed; they are no longer only interested in the end product. Consumers are demanding more from companies for their buy-in. And every corporate leader has to include some version of the above questions in their considerations if they want to succeed. Top CEOs say social responsibility should be prioritised over profits proving that social responsibility planning; it’s officially basic business planning. Last year the bosses of 181 Leading US’s biggest companies dropped the shareholder-first principle – they changed the official definition of “the purpose of a corporation” (from making the most money possible for shareholders) to “improving our society.”

Most successful CEOs and corporate leaders have profit in mind, and they always will; but they are also considering the needs of a variety of stakeholders, including the communities they impact. In this day and age, CEOs and corporate leaders are rising up to social expectations and are balancing the demands of multiple stakeholders.

Mankiw questioned CEOs’ and corporate leaders’ ability to be broadly competent social planners.  Paul Polman (former Unilever CEO) talks about creating collective courage. He rightly argues that it’s difficult for one industry player to impact an issue like reducing greenhouse gases because of the loss of competitiveness. However, if 20% of industry players come together, they can begin tipping the scales.  It’s starting to happen. In this way, by unifying their efforts, corporations, governmental agencies, and NGOs can partner to lead society.

CEOs and other leaders now find themselves in a changed world … they can and should play a variety of leadership roles that move beyond narrow profit maximization. This is a social responsibility, not broad social planning. Short-term earnings no longer feature in the top of the mission statement for most successful companies. We’re starting to find our way back to a more balanced view, and we need CEOs’ leadership in the process.

Mankiw admits that the world needs people to look out for the broad well-being of society – elected leaders who are competent and trustworthy – but those people are not CEOs. However, Mankiw fails to acknowledge just how much influence CEOs and corporate leaders have over our elected officials and the legislative process. Today, large corporations and their associations outspend labour and public interest groups 34 to 1 on lobbying efforts in the US.

In today’s high-risk environment, businesses have to pay attention to their social and environmental roles not only due to demand, but out of responsibility for the damage they (can) cause. For example, companies that contribute to, but then deny, climate change – the attorneys general of several American states launched investigations into ExxonMobil and whether they had committed fraud by sowing doubts about climate change – even as its own scientists knew it was taking place to firms involved in botched Grenfell Tower revamp refusing to accept responsibility for tragedy. Then there is Chamath Palihapitiya, former Facebook executive, who expressed regret for his part in building tools that destroy ‘the social fabric of how society works’. Companies are responsible for causing great damage on a human scale. We have to hold companies, CEOs and brands accountable for their destructive impact in today’s society; while they have a responsibility to support and help lead society.

CEOs and corporate leaders are exerting immense influence behind the scenes; therefore, qualified CEOs and corporate leaders should step up and help lead on the thorny economic issues of the day. However, with great power comes great social responsibility. Not all of the corporate leaders are equipped to lead societies; therefore, they should take a significant weight off the scale. Contrary to what Mankiw and others of his mindset might think, we must continue to demand more from our corporations, their boards, and their CEOs and leaders. Corporate leaders can make a unique and lasting positive impact, too.

About us…

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS102000:2013 and BS7858:2019 Certifications is an HRO certified provider and partner with Oracle.

In 2016, CRI® Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI® Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organizations. Contact ABAC® for more on ISO Certification and training.

MEET THE CEO

Zafar I. Anjum is Group Chief Executive Officer of CRI® Group (www.crigroup.com), a global supplier of investigative, forensic accounting, business due to diligence and employee background screening services for some of the world’s leading business organizations. Headquartered in London (with a significant presence throughout the region) and licensed by the Dubai International Financial Centre-DIFC, the Qatar Financial Center – QFC, and the Abu Dhabi Global Market-ADGM, CRI® Group safeguard businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business. CRI® Group maintains offices in UAE, Pakistan, Qatar, Singapore, Malaysia, Brazil, China, the USA, and the United Kingdom.

Contact CRI® Group to learn more about its 3PRM-Certified™ third-party risk management strategy program and discover an effective and proactive approach to mitigating the risks associated with corruption, bribery, financial crimes and other dangerous risks posed by third-party partnerships.

CONTACT INFORMATION

Zafar Anjum, MSc, MS, CFE, CII, MICA, Int. Dip. (Fin. Crime) | CRI® Group Chief Executive Officer

37th Floor, 1 Canada Square, Canary Wharf, London, E14 5AA United Kingdom

t: +44 207 8681415 | m: +44 7588 454959 | e: zanjum@crigroup.com

Filed under: Background Investigation, Compliance Solution, COVID-19 Insights, Due Diligence, Employee Background Check, Investigative Solution, ISO 37001, Resources, Third-Party Risk Management by admin
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7 Traits of a Resilient Leader

Every successful leader has encountered a challenging scenario at some point in their career. The unprecedented COVID-19 pandemic, however, has forced leaders to face unforeseen new challenges. With the pandemic’s colossal impact on operations, workforces, profits and supply chains across the globe, all eyes are on leadership to guide their businesses through this crisis. Resilient Leader

Resilient leaders are generally seen as more effective, making them an asset to any business; but what is resilience and how can it be applied to your management skills?

What is Resilience?

Resilience is the capacity to recover quickly from difficulties; it is a further evolution of stress management. This makes it a “no brainer” as to why resilience is such a popular concept in today’s business environment. Many businesses are pushing the concept of resilience as a way of helping workers better cope with the stresses and strains of the modern-day office and unlock their performance potential.

In this article, we look at seven essential qualities that characterise resilient leaders, and how to increase your resilience. In general, resilient leaders:

1. Show empathy
2. Are adaptable and able to improvise
3. Are self-aware and open to feedback
4. Take calculated risks
5. Keep a positive attitude
6. Develop others
7. Communicate effectively

1. Resilient Leaders Show Empathy

COVID-19 has generated one of the greatest challenges and, simultaneously, one of the greatest opportunities for resilient leaders – at all levels. According to a Gallup U.S poll, six in 10 people are “very” or “somewhat worried” that they or a family member will be exposed to COVID-19 (Gallup, 2020). During this crisis, emotional management is even more crucial than ever. According to studies carried out by Development Dimensions International (DDI), empathy is the most critical leadership skill. Leaders who display compassion, authenticity and vulnerability – and are capable of apologising when they’re wrong and handle criticism without blame – create strong emotional bonds with their teams (DDI, 2020).

The most resilient (and effective) leaders can demonstrate empathy and a high level of emotional intelligence. When your team feels understood, they feel more motivated and more confident to contribute cultivating stronger conversations, ideas and debate. As Mark Cuban shared in a recent interview: “How you treat your employees today will have more impact on your brand in future years than any amount of advertising, any amount of anything you literally could do” (Just Capital, 2020).

2. Resilient Leaders Are Adaptable

With COVID-19 infecting approximately 311,641 people in the UK alone, health officials suggested using hand sanitiser as the easiest way to prevent the spread of the disease. Consequently, these announcements led to panic buying (Euronews, 2020). In this type of situation, a resilient leader should be able to visualise this action as an opportunity – for example, dozens of spirit manufacturers across the UK started to produce hand sanitisers (i.e. BrewDog and Leith Gin). This is a classic example of an instant attitude adjustment – looking at what they can do as opposed to what they can’t (Telegraph, 2020).

When faced with change, resilient leaders can focus on the things within their business that they can still control. Whether impacted by new technologies, environmental challenges or even ethical dilemmas, the modern business landscape is always changing. A resilient leader needs to be flexible and adaptable to succeed. Is flexibility part of your leadership style?

3. Resilient Leaders Are Self-Aware and Coachable

According to Health Care Business Today, self-awareness and coachability are “The Two Most Important Leadership Traits” (Health Care Business Today, 2019). We think so, too. Resilient leaders are self-aware, confident, and most of all, able to recognise their strengths and overcome their weaknesses. Resilient leaders are open to feedback, ask for feedback and are always demonstrating a real effort to improve.

4. Resilient Leaders Take Calculated Risks

Successful leaders earned their success through taking calculated risks. When Amazon CEO Jeff Bezos launched AmazonFresh, he was scrutinised by others because he didn’t choose a successful delivery or supermarket executive to run the venture. Instead, Bezos selected a team that had previously run a web-based food delivery service in the ‘90s (which collapsed after two years in business). Why? Bezos knew that the team had learned from their failure, which made them the perfect choice to succeed with a new project.

Resilient leaders like Bezos take calculated risks while accepting that failure is a by-product of innovation and success. They learn to become comfortable with being uncomfortable, and flourish as the world changes around them.

5. Resilient Leaders Can Keep a Positive Mindset

The impact of COVID-19 is tough to manage. It is vital to have a positive mindset that can influence fellow professionals and raise team morale while maintaining business momentum.

Under the challenging circumstances posed by the COVID-19 crisis, a resilient leader needs to be enthusiastic, offer praise for success, and give credit when it’s due. American psychologist Carol Dweck has stated in her book “Mindset: The New Psychology of Success” that “a change of mindset must happen before other positive transformation can occur.”

Resiliency is needed when we encounter failure. As a resilient leader, you shouldn’t view failure as final, but as a necessary step to move further along your journey.

6. Resilient Leaders Develop Others

The most resilient leaders are concerned about the development of their teams. Developing others helps everyone to learn from their mistakes. We continue to find that leaders who want and accept honest feedback for themselves are more likely to give productive feedback and coaching to others.

7. Resilient Leaders Communicate Effectively

Effective communication helps teams understand changes, expectations and new directions. This understanding is the key to the success of any team. The most resilient and best leaders always communicate their intentions effectively to others and are willing to help their teams understand a new strategy or direction.

The COVID-19 pandemic is proving to be the ultimate test for business leadership. In times of crisis, only certain individuals can adapt and stand tall amongst the crowd. When it comes to leaders, being able to implement resilience tools and strategies will not only make you a better leader but help the company overall.

Who is CRI Group?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

Filed under: Automotive, Aviation, Background Investigation, Compliance Solution, COVID-19 Insights, Due Diligence, Employee Background Check, Finance & Professional services Industry, Insurance, Investigative Solution, IT & Telecommunications, Leadership Insights, Oil, Gas & Energy, Pharmaceutical & Healthcare, Property, Resources, Third-Party Risk Management by admin
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Fraud Advisory Panel deep dives into the HBOS scandal

On 30 January 2017, following a four-month trial, former HBOS employees Scourfield and Mark Dobson involved in HBOS scandal were convicted of fraud and corruption involving a scheme that cost the bank £245m. Scourfield pleaded guilty to six counts including corruption, and Dobson was found guilty of counts including bribery, fraud and money laundering.

The HBOS (Halifax Bank of Scotland) fraud trial was highly unusual in that senior bankers were convicted of crimes, including fraud and hiding the proceeds of crime, in the boom of irresponsible lending ahead of the 2008 crash. As Lloyds reopens compensation claims over HBOS fraud and almost a decade after the HBOS fraud victims will hopefully be finally compensated. Loyds damning review found that victims were not all treated equally after fraudsters plundered £1bn to fund sex parties, superyachts and lavish holidays. The victims were the taxpayer, small business customers of the bank, and HBOS shareholders.

Fraud Advisory Panel

Fraud Advisory Panel discusses the HBOS scandal in an executive breakfast briefing. Which will take a deep dive into the case and take stock of the significant challenges faced by counter-fraud professionals to ensure fair access to justice for those affected by fraud and financial crime, especially SMEs. The agenda is comprised of the following:

• The impact of the HBOS fraud on its victims.
• The practical challenges faced by law enforcement and prosecutors in large corporate frauds.
• The work of the APPG on Fair Business Banking to support SME victims.
• The key lessons that can be learnt from HBOS and how these can be used to inform proactive action to support victims.

Guest speakers

• Nick Gould, Aria Grace Law
• Brian O’Neill QC, 2 Hare Court
• Anthony Stansfeld, Police Crime Commissioner, Thames Valley
• Kevin Hollinrake MP Thirsk and Malton, Co-chair,  All Party Parliamentary Group on Fair Business Banking

In the chair

• Rachel Sexton, director, Fraud Advisory Panel

Registration Expired!

Filed under: Anti-Bribery Anti-Corruption Solution, Compliance Solution, Due Diligence, Finance & Professional services Industry, ISO 37001, Resources by admin
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Fraud Advisory Panel UK counter fraud 2019 report is out!

Fraud poses a major threat to the UK and the world. The slow progress in fighting fraud in 2019 was evident to all of us with the never-ending stream of news stories documenting bribery and corruption cases around the world in 2019. We documented each with our article on Top 10 Bribery and Corruption Cases of 2019  where we count down the stories:

• Juniper Networks
• Alstom
• Microsoft
• KPMG
• Samsung Heavy Industries
• Fresenius Medical
• Walmart
• TechnipFMC
• Ericsson
• Unaoil

But these cases helped some of the welcome signs that government and law enforcement were beginning to ratchet-up their interest in fraud with new regulatory updates. 2020 was looking promising to all fraud fighters around the world. Unfortunately COVID-19 pandemic has turned the tide in the fraudsters’ favour – creating the current environment of fear, confusion and economic uncertainty in which fraudsters thrive.

The latest Fraud Advisory Panel’s report, The calm before the storm UK counter fraud in 2019 highlights all of these and more. According to the report the SFO continued to conclude
successful deferred prosecution agreements (though still without converting any of them into individual prosecutions):

• 53% conviction rate (17 defendants out of 32)
• 11 criminal investigations opened
• 8 defendants charged (investigations closed without charge – 14)
• 16 defendants awaiting trial
• £3.9m funds recovered
• 11 new confiscation orders (combined value £4.1m)
• £1.5m for the first Account Forfeiture Order
• 70 total caseload

And all of the stories help illustrate the need for organisations to have proper controls in place to prevent bribery and corruption. A certification such as ISO 37001 – Anti-Bribery Management Systems standard can provide a comprehensive approach to mitigating bribery and corruption risk. Organisations of all sizes and industries should take steps now to ensure that they don’t end up on a future list of top bribery and corruption scandals. Only a well resourced, cross-sector, intelligence-led response can tackle fraud.

Staying one step ahead of any critical risk to your organisation is part of being an effective business leader. For assistance in developing and implementing a fraud prevention strategy, contact us today or get a FREE QUOTE now!

Who is CRI Group?

Filed under: Anti-Bribery Anti-Corruption Solution, Compliance Solution, COVID-19 Insights, Due Diligence, ISO 37001, Pakistan, Islamabad, Pakistan, Karachi, Qatar, Doha, Resources, Shanghai, Singapore, Singapore, United Arab Emirates, Abu Dubai, United Arab Emirates, Dubai, United Kingdom, London, United States of America, New York by admin
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Fraud Advisory Panel have set up a COVID-19 fraud watch group

The Fraud Advisory Panel have set up a COVID-19 fraud watch group.  A cross-sector and cross-industry coalition of trusted partners (including the Cabinet Office and City of London Police) who meet weekly to share information on emerging fraud threats and trends affecting business. The panel aims to act as a conduit to warn the public, private and third sectors about COVID-19 fraud risks. In addition to supply  preventative actions that can be taken.

Measures announced over recent months to deal with COVID-19 have seen our day-to-day life drastically changed forcing us to spend more time at home and online. Unfortunately, criminals are using every opportunity they can to scam innocent people and businesses. GOV.UK has also released advice and guidance on how to protect yourself and your business from fraud and cyber crime. This guidance explains simple steps you can take to protect yourself and your business against fraud and cyber crime and where to get help. The National Cyber Security Centre has also published advice on how to spot COVID-19 scams and keep remote working safe.

If you think you’ve been scammed or you’ve found something which looks like fraud or a scam, contact Action Fraud.

Staying one step ahead of any critical risk to your organisation is part of being an effective business leader. For assistance in developing and implementing a fraud prevention strategy, contact us today or get a FREE QUOTE now!

Have you read?

• Brexit poses new bribery challenges, ISO 37001 provides solutions
• Bribery and corruption plague Middle East, how can ISO 37001 help?
• As South Asia Grapples with anti-bribery compliance, ISO 37001 provides solutions
• Whitepaper: Organised catastrophe of international Pakistan airlines
• Rolls-Royce Case study: Ethics & Compliance
• ISO 37001 FAQ
• Are you ready for ISO 37001?
• Don’t have an ethical code of conduct? Your organisation needs one

Who is CRI Group?

Filed under: Anti-Bribery Anti-Corruption Solution, Compliance Solution, COVID-19 Insights, Due Diligence, ISO 37001, Pakistan, Islamabad, Pakistan, Karachi, Qatar, Doha, Resources, Shanghai, Singapore, Singapore, United Arab Emirates, Abu Dubai, United Arab Emirates, Dubai, United Kingdom, London, United States of America, New York by admin
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COVID-19’s impact on Cyber security: is your team safe?

When you download an app and it asks to access your contacts, location, and other information, it seems harmless enough, right? Surely the app will only use your data for its stated purpose, and only when needed? We all know that is not the whole truth. However, with COVID-19 forcing your workforce to embrace new practices of remote working you need to ensure your team’s business data is safe and your cyber security is too. Cybercriminals around the world are capitalising on this crisis, and your employees may not be aware. WHO reports fivefold increase in cyber attacks, urges vigilance, according to the article some 450 active WHO email addresses and passwords were leaked online along with thousands belonging to others working on the novel COVID-19 response.

According to a ScienceDaily article, “7 in 10 smartphone apps share your data with third-party services.” As the article warns:  “More than 70 percent of smartphone apps are reporting personal data to third-party tracking companies like Google Analytics, the Facebook Graph API or Crashlytics. When people install a new Android or iOS app, it asks the user’s permission before accessing personal information. Generally speaking, this is positive. And some of the information these apps are collecting are necessary for them to work properly: A map app wouldn’t be nearly as useful if it couldn’t use GPS data to get a location. But once an app has permission to collect that information, it can share your data with anyone the app’s developer wants to – letting third-party companies track where you are, how fast you’re moving and what you’re doing.”

The article also finds that the problem is not just limited to cell phones and tablets:

“Tracking users on their mobile devices is just part of a larger problem. More than half of the app-trackers we identified also track users through websites. Thanks to this technique, called “cross-device” tracking, these services can build a much more complete profile of your online persona.”

Another article, “Your Apps May Be Selling You Out” by Mondaq, sounds the alarm as well. The authors write that many of us likely aren’t aware of the degree to which our information is shared with advertisers and other third parties when we sign up for various apps. The principle is simple enough:

“If you have ever downloaded a ‘free’ app, you may have pondered how the app’s creator can maintain a financially viable company by giving away its product. The answer soon becomes evident when an advertisement pops up, interrupting your interaction with the app. The less obvious answer may come to you when you uncomfortably wonder how the ad that just popped up somehow relates to the items you browsed on Amazon a few days ago. Coincidence? Probably not. This happens because, in addition to selling advertisements, app creators may also access and sell information collected from your phone to allow advertisers to customize the ads they send to your device.”

How can people reasonably expect to solve this dilemma, and protect their privacy? How can organisations help their teams protect themselves? Short of changing laws, the answer is to be more vigilant in monitoring downloaded apps and our security settings. Follow this advice:

• Don’t give apps permission to access your personable information. Most app stores require apps to gain permission before using your location, camera or using other information. If you deny the apps these permissions, your personal information should be safe from their grasps.
• Check the permissions you have granted your existing apps. You may be letting them access personal information without even realizing it (even for apps you don’t use!).
• Don’t sign up for apps on websites, especially ones you don’t know or trust. You have more protection when they are downloaded through a popular app store.
• Delete apps that you don’t remember downloading or no longer need/use.
• Consider adding security and privacy apps that scan your phone to help you find security risks. In other words, apps that police your other apps!

Unfortunately for those of us who frequently use mobile devices and are now working-from-home because of COVID-19 the odds are stacked against us when it comes to controlling and protecting our personal information. The best we can do is be aware of the risk and try to minimize it as best as possible. And to support new laws and regulations that aim to protect consumers and their privacy in all aspects of our “online lives.”

It is important to remember that the same principles that apply to protecting yourself on mobile devices and elsewhere also apply to protecting your business. Just as you must vet your apps, websites and other content to make sure they come from trusted sources, it is also critical to thoroughly check third party partners and perform background checks on potential and existing employees to ensure that your organization doesn’t face unseen risks from fraud and corruption.

CRI Group offers an entire suite of expert services focused on protecting your organization through proper pre-employment screening and background checks. These protections include:

• Employee Integrity Due Diligence
• Personnel Vetting & Pre-Employment Background Screening
• Vendor & 3rd Party Screening

Staying one step ahead of any critical risk to your organisation is part of being an effective business leader. Contact us today to get started on implementing a robust program that will serve you well for years to come. Get your FREE QUOTE now!

Filed under: Background Investigation, Compliance Solution, COVID-19 Insights, Due Diligence, Employee Background Check, Pakistan, Islamabad, Pakistan, Karachi, Resources by admin
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