by admin_lauth | Apr 26, 2019 | Corporate Investigations, Investigations, Resources, Tips & Facts, Workplace
What is a corporate crisis? While exact definitions may differ, a corporate crisis is generally defined as “an event, situation, or public initiative that threatens the company’s ability to effectively operate its business. A crisis can escalate into a disaster or long-term impediment to business growth if not handled with efficiency and sensitivity to all involved.” This is a large umbrella that encompasses many of the internal issues we associate with companies, including (but not limited to) fraud, theft, misconduct, and harassment of all kinds.
A majority of corporate crises fall into one of three categories: personnel, systemic, and contextual.
- A personnel crisis is an internal issue that is a direct result of an individual employee or a group of employees’ bad behavior. Theft by personnel is one of the most widely-reported crises in corporations throughout America. The scope of this problem can be as small as stealing office supplies all the way up to executive embezzlement. Sexual harassment is a type of personnel crisis receiving a welcomed new level of attention in corporations. In the age of the #MeToo movement, corporations are viewing their workforce very differently when it comes to identifying potential predators in their midst in the name of a “pound of cure.” Prudent steps taken when vetting potential hires and current employees has saved companies difficulties down the line, especially in legal fees and public relations.
- A systemic crisis refers to a major breakdown in operations negatively impacting business. A common example is food service corporations that receive a sudden influx of food poisoning complaints. Source of the outbreak may be traced back to how the supplier or distributor handled the food product, and suddenly, there’s a systemic crisis: A misstep in operations led to a large sum of incidents. Systemic problems manifest themselves in many forms, including external theft. Repeated theft, both in cyberspace and the real world, is often the result of insufficient security within a company. Consequently, the company incurs loss because they remain vulnerable. Companies who have chronic turnover due to employee misconduct may have flaws in their vetting system for potential employees. That is another example of a crucial operation where a breakdown occurs and erodes a company’s profits with labor hours to hire a new individual to fill a vacant position.
- A contextual crisis has exponential consequences for a business relative to its size. These are the types of crises that companies cannot anticipate, because they influence public perception of their brand based on real-life events. A major news story like a mass shooting, or a major criminal case, or a lawsuit, can negatively impact a brand even if that event is not directly associated with that company. These external events can drastically change a company’s internal operations, and can weigh heavy on employees at every level. Sexual harassment is another example of this type of crisis in motion. The media coverage regarding high-level Hollywood executives like Harvey Weinstein and his alleged history of abuse have executives in companies of all shapes and sizes revisiting their human resource policies and practices when it comes to addressing sexual misconduct in the workplace. Internal operations receive a major overhaul to the benefit of a healthier work environment for everyone.
When it comes to corporate crises, not all businesses will be able to afford specialized investigators to work in-house to resolve issues that arise. Even if they can afford these professionals, investigators employed by the company—regardless of the quality of their work—by definition cannot provide a truly objective solution to any problem. Because they’re employed by the corporation, they have a potential stake in the outcome of the investigation, whether that stake be real or perceived. Hiring an independent professional, like a licensed private investigator, to conduct an external investigation is the best way to ensure that the solution is objective. This is particularly important personnel crises, because terminating personnel based on an unbiased investigation is kerosene for a disgruntled employee that can manifest itself with many devastating consequences—most commonly wrongful termination lawsuits. Private investigators can assist in systemic crises as well, like the example of repeated thefts with regards to security. Private investigators who specialize in different kinds of risk assessment can identify a company’s vulnerabilities to thieves and scammers, and provide them with a game plan to improve their security.
If your business has encountered a corporate crisis, call Lauth Investigations International today for a free consultation. Learn how we can provide you with an objective solution to your corporate crisis. Call 317-951-1100, or learn more about our services here.
by admin_lauth | Mar 28, 2019 | Consumer Fraud, Cyber Crime, Cyber Investigations, Fraud, Personal Investigations, Phishing, Resources, Tips & Facts
Being a responsible consumer in the year 2019 means educating yourself—not just on the products and services—but of the ways scammers and thieves exploit consumer behavior for their own financial gain. As technology advances with the convenience of SMS text messaging as a security feature, financial applications that put your finances at your fingertips, and the tangled world wide web, consumer fraud scams will only continue to mutate and evolve. Here are five of the most common types of consumer fraud scams to avoid in 2019.
According to the Federal Bureau of Investigation’s Financial Fraud Unit, mortgage fraud exploits a consumer’s fear of losing their home to make a quick buck. Mortgage fraud schemes come in many forms, including but not limited to equity skimming, loan modifications, and foreclosure rescue schemes. The perpetrators behind these schemes are often former real estate professionals who use their intimate knowledge of mortgages to swindle homeowners in distress. Real estate agents who are currently employed can exploit their authority to bolster the validity of their scheme. The FBI and FTC advise that consumers should be wary of any unsolicited phone calls, emails, regarding their home finances, and never sign any paperwork or documentation that they do not fully comprehend.
Debit Card Fraud
Debit card fraud occurs when an individual’s debit card information is obtained to make fraudulent purchases. Debit card fraud is one of the most difficult schemes to avoid in day-to-day life, because so many Americans have gradually transitioned from carrying cash to carrying only their debit card as means of legal tender. Anyone with access to the debit card’s information—including the businesses and vendors we trust every day—can pull this information to commit a fraud. Unfortunately, the only recourse consumers have in protecting themselves is to avoid letting their card ever leave their sight, and to keep a watchful eye on their accounts and report any suspicious activity.
Perhaps one of the most despicable types of consumer fraud is charity fraud. Scammers set up shell organizations to receive donations that do not go to those in need, but rather line the scammer’s pockets. Frauds of these type spike significantly during the holidays and in the wake of natural disasters in order to exploit humankind’s benevolence. The name of the game with charities is research. Any charity worth its salt is going to stand up to a great deal of due-diligence and fact-finding. Part of being a responsible consumer is knowing where your money is going.
Winning the lottery is a dream of many Americans, with fantasies of kicking back and never having to put in another hard day’s work for the rest of their lives. Despite the wide range of demographics with these dreams, lottery fraud scams usually effect senior citizens in the United States. The scam usually begins with a letter or email letting the individual know they have won. The correspondence usually includes details about fees that are involved with receiving their winnings. The FTC warns that individuals who have won a legitimate lottery prize of any kind should never have to pay a fee to collect their winnings, and consumers should be suspect of any unsolicited correspondence stating as such. Consumers should also be advised that United States law does not support the sale and transference of international lottery tickets, so any correspondence from international lotteries is most certainly a scam.
Studies by Javelin Strategy & Research conducted over the last seven years indicate that in 2017, there were as many as 16.7 million Americans impacted by identity fraud, with $16.8 million in stolen funds and assets. Identity theft can be committed for a number of reasons. Perpetrators can steal an individual’s information with the purpose of starting over again under a different name, or to escape their creditors. Most commonly, however, identity fraud is simply committed with the explicit purpose of stealing money from American consumers. Once a scammer has an individual’s identifying information, like dates of birth, Social Security numbers, and their mother’s maiden name, they can use that data to make fraudulent purchases in the victim’s name, withdraw funds from their bank accounts, and destroy their credit, leaving them financially arrested. The aftermath of identity fraud is devastating and can cause shockwaves across decades with exponential consequences.
If you have been the victim of a consumer fraud scam, contact a private investigator today to learn how their unique set of skills and professional autonomy can help you locate the scammer in your midst. Call Lauth Investigations International today for a free consultation (317-951-1100) and a simple solution to your consumer crisis.
Carie McMichael is the Media and Communications Specialist for Lauth Investigations International. She regularly writes on investigation, fraud, and missing persons topics. For more information, please visit our website.
by admin_lauth | Jan 17, 2019 | Consumer Fraud, Fraud, Fraud and Forgery Evergreen, Investigations, Resources, Tips & Facts
ShutDown: Consumer Fraud Investigations Halted
The United States government has been shut down for almost four weeks, sending shockwaves throughout a nation already gripped by tumultuous politics and controversial issues. In addition to institutions like the National Parks System, and the National Institute of Health, all federal employees have currently been laid off from duty, and a majority of their services suspended. The ripple effect is dizzying, with many of the governments services being on hold for the duration of the shutdown. Many consumers across the country are not aware of the shutdown’s impact on some of our nation’s best departments, so you can imagine their shock when they phoned to report a consumer complaint, and were told the government couldn’t help them.
When running normally, the government requires a wealth of quality communication to run smoothly. As many federal employees remain on furlough, therefore not being compensated, everyone’s level of communication with one another is atypical and—as many federal employees are called in without pay—constantly breaking down. The Consumer Financial Protection Bureau (CFPB) is the federal agency that fields the influx of consumer complaints. A consumer submits their complaint about a business or financial entity to the CFPB, which is reviewed. According to the CFPB, after the complaint is reviewed, “We’ll forward your complaint and any documents you provide to the company and work to get a response from them. If we find that another government agency would be better able to assist, we will forward your complaint to them and let you know.” The CFPB remains in operation and was not effected by the shutdown, but if the agency is ill-equipped to deal with the complaint, they may never get off the ground, as the appropriate department might be effected by the shutdown. This leaves many consumers displaced when it comes to voicing their concerns about products and services.
This suspension of protection services has allowed the beast of robo-calls to fester and become feral, as consumers cannot block or report harassing robo-calls. They’re left screaming into the void. Alex Quilici, the chief executive of YouMail—a smartphone application that helps consumers block robo-calls—describes it, “It’s a neighborhood with no police on the beat.” YouMail estimated, just last month, there were 5 billion robo-calls made, and 50% of calls made in early 2019 could be coming from scammers and robots attempting to fraudulently obtain your information. These horrifying statistics are the codas for a chorus of federal employees who are aware of the scope of the problem, like Jessica Rosenworcel, the Federal Communications Commission Commissioner, “The number of robo-calls consumers are receiving is insane. The problem just keeps growing. Shutting down the government is not going to help.” As of this moment, there is no one to administrate the “Do Not Call” list, the national registry in which consumers can ask specific companies not to contact them.
The Federal Communications Commission is just one of many threads woven into the Federal Trade Commission. Another voiceless victim of the shutdown is the victim of identity fraud. Louette Duvall is one of these victims. Not long after the holidays were over, Duvall’s car was pilfered by thieves while she was at her job. They made off with her purse, her briefcase, and a wealth of identifying information that amounted to a scammer’s treasure trove. Fraudulent charges started rolling in as she scrambled to alert all of her creditors and financial institutions that she had been robbed. She began calculating the full scope of the theft’s ramifications: New checkbooks ordered, extravagant items ordered in her name, new credit cards, the list goes on and on. When she called the Federal Trade Commission to let them know her identity had been stolen, she was told they could not help her due to the government shutdown. FTC data prior to the shutdown stated that the agency received thousands of calls a day regarding identity theft alone. That’s thousands of crimes going uninvestigated every day, a Washington Post reporter pointed out when they became a victim as well. Not only are new crimes going unreported, but investigative resources are also frozen. The Consumer Sentinel Network helps investigators track the movement of identity theft and related frauds to build cases against the perpetrators, and it remains down as of day 26 of the longest government shutdown in history. At a minimum, the FTC is still allowing individuals to file complaints so that they be issued an affidavit for their creditors’ purposes.
News coverage of the shutdown has attempted to sharpen the big picture for Americans when it comes to the ripple effect of the government shutdown. While many federal agencies might be unable to assist consumers with complaints, there is recourse for consumers experiencing the myriad of issues helmed by the Federal Trade Commission. There are online, step-by-step resources for obtaining documentation to dispute fraudulent charges and claims. Consumers can also retain the services of a private investigator. One of the most beneficial aspects of hiring a private investigator is that they are the top of the chain of command in their firm. They are the ones calling the shots in any investigation, not a supervisor nor a superior. They will represent your interests and your interests alone. As is the case with many frauds and thefts, perpetrators tend to either operate remotely, or move quickly to evade law enforcement. Acting independently, private investigators will be able to move as fluidly as a scammer, crossing jurisdictional boundaries with little to no red tape. Statistics surrounding fraud indicate that many federal investigators in charge of tracking down scammers and thieves are inundated with a never-ending stream of complaints. This means their attention can be divided over and over again across a heavy caseload. A typical private investigator only handles between 3-4 cases at a time, meaning your case can be a priority for them and not just another file in a drawer.
Political pundits and talking heads don’t project a sunny forecast when it comes to the shutdown—no end in sight. As the shutdown enters its 27th day, many Americans who have been the victims of consumer fraud and identity theft who do not yet know the full scope of the shutdown’s impact will receive an ugly surprise when they turn to the federal government for help. While the government gets its house in order, know that there are options for victims of consumer and identity fraud. Consult a private investigator today to learn how their specific skill set, experience, and independence can help you get right the ship when it comes to fraud.
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by admin_lauth | Nov 27, 2018 | Consumer Fraud, Corporate Investigations, Criminal Investigation, Insurance Fraud, Missing Person, Personal Investigations, Private Investigations News
Indianapolis, Indiana is home to many impressive things. The city of over 800,000 is most famous throughout the country as home to the Indianapolis Motor Speedway, the site of the Indianapolis 500. In addition to a rich visual and performing arts culture, it’s also home to the nation’s largest children’s museum. Families across the United States cheer for one of two major sports franchises based in Indianapolis: the NBA’s Indiana Pacers, and the NFL’s Indianapolis Colts. It’s also home to one of the country’s best private investigators.
Family-owned and operated for more than 30 years, Lauth Investigations International has specialized in complex corporate, financial, and private investigations worldwide. It is one of many private investigation firms based in Indiana’s capital. Given recent crime data, Indianapolis is a city where a well of clientele may never run dry. One of the areas of criminal investigation most associated with private investigators is missing persons and violent crime, so it’s no a wonder why so many private investigators have set up shop in Indianapolis, with violent crime on the rise.
Relative to its size and population, Indianapolis is comparable to Portland, Oregon or Charlotte, North Carolina. Portland has a crime rate of 227 per every 100,000 people, which is lower than the national average crime rate. North Carolina experiences a higher than average crime rate of 441 per every 100,000 people. As of 2016, Indianapolis’ reported crime rate was 823.2 per every 100,000 people. A CBS News report ranking dangerous cities placed Indianapolis as the 12th in the nation, citing the violent crime rate at more than three times the national average.
News media is saturated with headlines concerning violent crimes committed against Hoosiers, so it was a surprise to most when the FBI reported crime was actually down 10% from 2016 to 2017, especially burglaries and robberies which were down 17%. Violence—especially gun violence—however, is climbing. As of October 1st, 2018, the Indianapolis Metropolitan Police Department had investigated 127 homicides and 109 murders, with 12% of those cases attributed to robbery. The recent murder of Tykece Mike-Jones is a tragic example. He was killed over a cell phone he was attempting to sell to a person he contacted through the internet—another in a string of killings IMPD has been putting on blast to warn citizens. According to the FBI, 2017 was the third record-breaking year for crime statistics in Indianapolis, and stats from the first half of this year have projected 2018 will be no different. Law enforcement attributes the overall drop in crime to the increased ubiquity of surveillance cameras in the metropolitan area.
Firms like Lauth Investigations International can assist in many types of criminal investigation. Just as in the case of violent crimes, private investigators combine the skills of law enforcement and the autonomy of a private citizen to conduct concurrent or independent investigations into a person who vanishes under any circumstances. But not all missing persons cases are the result of a person meeting a violent end. As “the crossroads of America,” Indianapolis experiences a moderate to high level of human trafficking. One of the most complex issues in human trafficking is tracking traffickers across multiple jurisdictions as they transport victims from city to city. Law enforcement can often be handcuffed by jurisdictional issues, but private investigators use their autonomy to pole vault over this red tape in pursuit of leads that might otherwise go cold. Due to his experience in complex missing persons investigations, private investigator, Thomas Lauth has worked with Interpol, the Federal Bureau of Investigation, the U.S. State Department, the U.S. Consulate and other foreign embassies on a myriad of cases, including human trafficking.
Indianapolis private investigators are not limited to cases of violent crime and missing persons, however. Every major metropolitan area will always have cases dealing with infidelity or child custody, but private investigators based in Indianapolis have ample opportunity to service local businesses with their skill-set. Indianapolis is home to a diversified body of businesses, but its five top industries are:
- Real estate
Many business owners—especially small business owners—often are not aware of how a private investigator’s services can protect, or even save, their companies. Every business needs valued employees, and finding the right person can often be an arduous task. The candidate might be qualified, but how much about their record can be independently verified? Hiring a private investigator to do background checks for employees will ensure that any verification of their qualifications will be vetted. In the wake of the #MeToo movement, many employers are making independent background checks a regular step of their hiring process in order to weed out potential predators in their workforce. All types of business can experience the full spectrum of employee theft (from vanishing office supplies to full-on embezzlement), violation of non-compete agreements, and offenses under the umbrella of employee malingering, including FMLA abuse. The independent involvement of a private investigator in the investigation of any employee misconduct will lay a strong foundation for any HR or legal consequences, ensuring that the investigation is thorough and objective from beginning to end. Kristen Justis, the Managing Director of Client Relations for Lauth Investigations International, commented on the role Lauth can play in bolstering local business, “We have a wealth of opportunities to help private citizens every day. We help frantic parents find their missing child, or put a spouse’s suspicions of infidelity at ease, but those are the cases that sensationalize this industry. Many business owners are not aware of how the services we offer can go a long way towards extending the longevity of their businesses.”
Every major industry operating in Indianapolis can rely on the services of a private investigator to protect their business—not just from its own workforce, but potential consumers as well. Finance, insurance, and real estate of all kinds can benefit from a comprehensive vetting of a consumer after their request for services. Financial institutions and insurance brokers may check a consumer’s credit, but a full background check on an applicant can sharpen the big picture when making a cost-benefit analysis regarding any transaction. In the housing industry, any landlord renting or leasing their property can be fully informed about their tenants when they employ a private investigator to run a background check. An analysis of Indianapolis’s economy by the Indianapolis Business Journal concluded that the apartment booms the city experienced were driven largely by empty-nesters and childless millennials, projecting that it would only continue to grow.
Indianapolis already has a national economical reputation for developing and sustaining niche markets, such as the market around motorsports and auto-racing. As the metropolis continues to grow in population and economy, so will the opportunities for Indy-based private investigators to support their community.
Carie McMichael is the Communications and Media Specialist for Lauth Investigations International. She regularly writes on missing person and investigation topics. For more information, please visit our website.
by admin_lauth | Jul 12, 2018 | Background Checks, Corporate Investigations, Harassment & Discrimination Evergreen, Investigations, Resources, Theft, Tips & Facts, Worker's Compensation, Workers Compensation Fraud Evergreen, Workplace
5 Ways Private Investigators Benefit Human Resources
Our brains are one of the defining parts of our anatomy that makes up who we are as humans, but without vital organs such as the heart, we cannot live to become who we were meant to be. The brain sends signals to the heart to pump vital fluids and maintain the health and fitness of the body in order to grow and develop. In a capitalist world of business and commerce, if a CEO is the brains of a company, certainly Human Resources is the heart. Before any employee can enter a company, they must go through HR, just as vital fluids must pass through the heart before reaching their destination. It is important for Human Resource representatives to be armed with knowledge to allow them to bring in the best and the brightest to contribute to their company. One of the ways HR can rest easy in their hires is by retaining the services of a private investigator to voire dire the candidate base, maintain a healthy work environment, and prevent employee fraud that would damage the company.
Hiring the Right People
If proper precautions are not taken, hiring a candidate who might soon be terminated can be very costly to a company. Even if the employee is making minimum wage at the time of their termination, a study from the Society for Human Resource Management estimated it can cost as much as $3500 to replace that employee. The higher the level of employment, the costs exponentially increase, with other estimates claiming that it could cost as much as 150% for middle-level employees and 400% for high-level. Therefore, hiring the correct employee on the first attempt can be critical. As the heart of the company, Human Resources are often overwhelmed with a myriad of tasks, which can make the vetting of potential employees fall lower and lower on the list of priorities. This is where the services of a private investigator will prove prudent. Private investigators can use their time and skills to perform background checks on employees, painting a clearer picture for HR representatives. This helps ensure the hiring of proper employees, which minimizes turnover, and greases the wheels of progress within a company.
Exposing Workplace Theft
A report by CBS News estimated that a typical business will lose 5% of annual revenue to employee theft. Employee Theft Solutions, a division of the Shulman Center for Compulsive Theft and Spending, has estimated that nearly one third of all corporate bankruptcies were the result of unfettered employee theft. Even more alarming, the U.S. Chamber of Commerce estimated that 75% of employed persons will steal from their workplace or employer and will continue to steal if not exposed. It is a staggering statistic that should garner scrutiny from the Human Resources department with regards to their own workforce. Bearing in mind that investigating the behavior of a single prospective employee could be very time consuming, imagine having to vet an entire staff in order to uncover a source of theft. With an average of 3-5 cases at any given time, private investigators have the time and access to resources that can help expose the perpetrator of theft in a company. In addition to checking security systems and interviewing witnesses, private investigators also have the advantage of being able to conduct undercover investigations in order to squeeze out the source of theft. These investigative services can help reinforce the wall that prevents employees from devastating a company with fraud.
Fraudulent Compensation Claims
A significant portion of the costs incurred annually by employees is attributed to worker’s compensation claims. As a member of Human Resources, it might be easy to trust every single worker compensation claim that comes through the pipeline. After all, yourself or a former superior may have hired the employee, and you trust one another’s respective judgement. However, it is naïve to assume every claim will be legitimate. Worker compensation claims can cost companies hundreds of thousands of dollars per fiscal year depending on the volume of claims. A recent statistic by the Employee Benefit Research Institute in 2014 estimated that it can cost companies as much as a $1.00 per every $100 of employee wages, which can add up very quickly. This is where a private investigator can be a godsend amidst pending litigation. Often in worker compensation claims, interviews are required with the claimant to get their version of events that led up to their injury. While members of Human Resources have many gifts, they may not be skilled in extracting the truth from an employee who might be committing a fraud. Private investigators work to get to the truth every day and can assist the HR department in protecting themselves within the letter of the law. With the resources and due-diligence of a PI vetting the claim, businesses can rest easy knowing that the claims coming through the Human Resources department have merit.
HR Investigation Integrity
With the growing problem of drugs in the workplace and the rise of the #MeToo movement, businesses are having more use for private investigators than ever before. A recent article by CNBC details how a rising number of businesses are hiring private investigators in order to identify predators in their workforce before an employee comes forward with claims of sexual harassment, discrimination, or threats.
“An ounce of prevention is really worth a pound of cure here, because the cost of potential drop in stock price, legal and PR cost — the possibility of regulators getting involved and regulating industries — they are enormous compared with the relatively modest expenditure in hiring folks like us in order to rule out this behavior,” said Nardello, CEO of Nardello & Co.
In addition to identifying these problems to save a business money, it is also imperative that any internal Human Resources department conducts a thorough, prompt, and lawful investigation. Just as private investigators can use their skills to identify predators, they can also protect any HR personnel from compromising the integrity of an investigation, protecting them from legal liability.
An Objective Eye
Human Resources: It’s in the name. Whenever there is a problem between coworkers, a discrepancy in payroll, or simple maintenance of a healthy work environment, the human resources department is where employees will turn to address issues in their job. And while members of HR do their best to solve these problems from an administrating and mediating position, they cannot always be objective. After all, HR is just as much a part of the workforce as any other employee, and all of the same implications of camaraderie and friendship can apply. By the same token, HR can also have negative relationships with the subjects of their investigations, which can influence their judgement. These biases can have a toxic effect on office morale, and employees might not feel as though they can trust Human Resources to be fair and impartial when addressing workplace issues. When there is no trust, the important relationship between HR and other departments breaks down. As is the case with many investigative scenarios, a private investigator is always the perfect second set of eyes to have when examining these issues. Without a stake in the outcome of any internal investigation, private investigators can remain unbiased as they conduct interviews, collect evidence, and reach a conclusion in regards to the veracity of any claim.
It is important for any Human Resources department to safeguard themselves against the many challenges—both internal and external—they encounter on a daily basis in their company. Retaining the services of a private investigator can go a long way to taking pressure off an already busy department, as well as providing an objective third-party perspective that will positively benefit companies as they grow and develop. If CEOs are the brains of a company and the Human Resources department is the heart, certainly a private investigator would be the immune system; identifying problems and staving off possible infection in order to maintain the health and productivity of any work environment.
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