course syllabus - files.acams.orgfiles.acams.org/pdfs/2019/acams_fraud_course_syllabus_2019.pdf ·...

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Fraud course syllabus updated 17MAR2019 1

FRAUD

Course Syllabus

Audience

The primary target is the frontline analyst, teaching skills that benefit new and experienced employees, especially as regulator and market expectations increase. This course assumes the employer has already introduced that organization’s unique roles, processes, systems, and common cases, and this course will not conflict with those. To bring all learners to a shared baseline of terminology, concepts, and processes, the course starts with the “Essentials” video and then builds from there.

The course is written and presented by subject matter experts working around the world. It pulls examples from many countries, and is globally appropriate. The lessons and examples are relevant to any industry. A primary focus is “financial institutions,” including banks, credit unions, asset managers, insurance, MSB, securities broker-dealers, credit card issuers, alternate payment systems, etc.

Course Structure

ACAMS allows you 4 calendar weeks to complete 4 hours of coursework, including a final assessment. You will be guided using a learning path on ACAMS’ learning management system (LMS). Follow carefully all instructions. Live virtual classroom events are pre-scheduled before you purchase the course. 4 weeks from the course start date your access expires.

Assignment Format Download from LMS

Week 1 30 mins – VIDEO “Essentials”

Video: Self-paced, available anytime PDF quick reference

Week 2 90 mins – VIRTUAL CLASSROOM

Live event: See LMS for date/time. Later a recording will be on the LMS.

PDF slides

Week 3 90 mins – VIRTUAL CLASSROOM

Live event: See LMS for date/time. Later a recording will be on the LMS.

PDF slides

Week 4 15 mins – HOMEWORK 15 mins – ONLINE ASSESSMENT

Self-paced, available anytime. Self-paced, available anytime.

PDF Assignment PDF ACAMS Certificate

To earn the certificate you must pass the assessment within the 4 weeks. The assessment has 20 questions. The minimum passing score is 80%. Multiple attempts are allowed. When you pass, your ACAMS Certificate will be available in the learning path itself. Click to download a PDF. ACAMS will automatically add 4 CAMS Credits to your profile.



Technical Requirements:

The course is compatible with most operating systems, browsers, and devices to make it easy for everyone to participate. The ACAMS Learning Management System (LMS) is https://lms.acams.org. Contact your organization’s IT department for assistance.

https://lms.acams.org



Tips and tricks that stop tricks and cheats.

Behavioral outcomes of this course:

1. Define fraud and recognize its red flags

2. Understand common fraud typologies

3. Identify your exposure to fraud typologies via a risk-based assessment

4. Implement controls to prevent fraud

Course content

WEEK 1 – Self-paced video “Essentials”

Minutes Content

30 Bring all learners to a shared baseline of terminology, concepts, and processes.

WEEK 2 – Live event “Criminal Minds”

Minutes Content

5 Welcome and Introductions

5 Poll question

10 1. What is fraud?a. The Fraud Triangleb. Fraud diamond

2. Profile of a fraudster3. Red Flags4. Types of Fraud by occurrence

a. Singleb. Episodicc. Systematic

5. Types of Fraud by perpetrator:a. Internalb. Externalc. Collusion

5 Poll question

5 Q&A Highlights

20 6. Types of Fraud by Schemea. Procurement and Contract Fraud

i. Internal1. Fictitious invoices

ii. External1. Bid rigging2. Collusion among vendors

iii. Collusion1. Bribes2. Kick-backs

b. Client or Corporate Asset Misappropriationi. Internal



20 1. Embezzlement2. Margin Trading3. Physical Asset Misappropriation4. Rouge Trading5. Fee Manipulation6. Data Leakage including stealing customer files

ii. Collusion1. Bribery and Corruption

b. Financial Statement Fraud (Enron)i. Internal

1. Earnings management2. Deferred tax assets/liabilities3. Intangibles

ii. Collusion3. Company/CPA Firm

c. Ponzi Schemes/Pyramid Schemes (Madoff)d. Bank Fraud

i. Internal1. Account Opening Fraud2. Credit and Debit Card Fraud3. Embezzlement

i. Cash theftii. Fictitious Loans

4. Concealment of Problem Assetsv. Financial statement manipulation

ii. External1. Check Fraud2. Asset Based Lending Fraud

i. Accounts Receivable LOCii. Construction/CRE LOCiii. Agricultural Lending/LOC

3. False Financial Statements4. Money Laundering

iii. Collusion1. Mortgage fraud2. Nominee Loans3. Concealment of problem assets

e. Securities Fraudi. Internal

1. Market Manipulationi. Pump and Dumpii. Short Selling

2. Insider Trading3. Rogue Trading (Adoboli/UBS, Kerviel/SocGen)4. Stock Options Fraud

ii. External1. Prime Bank Note Fraud2. Penny Stocks3. Equity Crowd Funding

5 Poll question



5 f. Mortgage or Loan Fraudi. Internal

1. Lender Fraudii. External

1. Income Fraud2. Employment Fraud3. Occupancy Fraud4. Appraisal Fraud5. Receive multiple loans from the same company Double Pledging of Collateral6. Double Pledging of Collateral7. Foreclosure Scams8. Buy and bail-Fraud

iii. Collusion1. Kick-back Fraud

g. Social Security System Fraud, Government Benefits Fraud, Insurance Fraudh. Cyber Threats/ Frauds

i. Internal/External1. Malware2. Phishing

ii. External1. Denial of Service Attack2. Intrusion/Hack and theft of information

i. Identify Thefti. Internal

1. Employee theft of customer PIIii. External

1. Social Engineering2. CEO Fraud3. Corporate Account Takeover4. Vendor Fraud

i. Slightly different e-mail addresses5. Customer Account Intrusion

i. Social Engineeringii. Phishingiii. Slightly different e-mail addressesiv. Fake Identities

6. Check Overpayment Fraudiii. Collusion

1. Money Mules and Good Mules

5 Poll question

5 Q&A highlights

5 Close and Homework



WEEK 3 – Live event “Crime Fighters”

Minutes Content

5 Welcome

5 Poll question

5 Poll question

10 1. Fraud Deterrence vs Fraud Prevention2. Fraud: Financial Crime Prevention, Operational Risk or IT-Security3. Fighting Fraud in the 1st LoD or in the 2nd4. Breaking Up the Silos – Fraud Prevention as part of the Financial Crime Risk Management5. Code of Ethics and Code of Conduct6. Tone from the top and walk the talk7. It all starts with a fraud Risk Assessments!

a. Identify Risks and Scenariosi. Think like a fraudster

b. Identify the Inherent Riskc. Identify Controls and Measuresd. Identify residual Riske. Mitigating Measures

5 Poll question

5 Q&A Highlights

20 8. Three Lines of Defensea. Internal Controls and Monitoring

i. Internal control processes and proceduresii. Internal Audit Programiii. External Audit Program

b. Whistleblower Hotlinec. Employee Accountability

i. Personnel Actionsii. Legal Actions

9. Controls and monitoringa. Know-Your-Customer

i. Fraud Controls during Onboarding and as part of KYC/CDD programsb. Know-Your-Employee

i. Background checksii. Periodic Account Reviewsiii. Periodic Credit Checks

c. Know-Your-Vendori. Security Firmsii. Cleaning Firmsiii. Contractors

d. Matching employee data with clients and vendorse. E-Mail Screening

i. Data Leakage Preventionii. Employee Conduct



f. Four-Eye Principleg. Block Leave/Vacation Policiesh. Monitor IP-addresses and locations in client activityi. New product approval processj. Implementing controls in the process designk. Call backs

10. Training – Raising the awareness-level is the best preventioni. Include Vendorsii. Include Brokersiii. Include Clients

11. Dedicated Fraud Monitoringi. Leverage AML and Sanctions Monitoringii. Name Screeningiii. Adverse Mediaiv. Data Miningv. Data Analyticsvi. Network Analysis

12. Global Blacklists13. Short word on fraud investigations

5 Q&A Highlights

5 Poll question

5 Close and next steps

course syllabus - files.acams.orgfiles.acams.org/pdfs/2019/acams_fraud_course_syllabus_2019.pdf ·...

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