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sandy ingram

Online Social Networking The Employer's Dilemma - 0 views

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    notifying employees of clear rules on what is acceptable and what is not, balancing the need to monitor with the employees' reasonable expectations of privacy and weighing the overall benefits of allowing personal usage against the risks of doing so, are all issues with which managers will be familiar.
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    Social networking sites can be both addictive and time-consuming, damaging employee productivity
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    A more troublesome concern is the potential for damage to an employer's reputation or brand, if an employee makes derogatory comments about an employer, client or customer. Such comments then become easy to find via an online search and may be available for an unlimited time. Employers are also concerned about the potential loss of confidential information by an unguarded (or malicious) comment by an employee, then causing the company embarrassment, financial damage or possibly leaving them open to security risks such as identity fraud.
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    For employers, the temptation to utilise sites such as Facebook and MySpace may also lead them into trouble. Some employers view the scanning of such sites for information on prospective employees as legitimate; others view it as distasteful and intrusive (the equivalent of rummaging through a candidate's personal items). Whatever the view, employers adopting this approach would do well to heed the warning of the TUC's guidance on online social networking. This guidance reminds employers that only a minority of potential staff will have a public profile on a social network, so using information from this source can give either an unfair advantage or disadvantage to certain candidates, as well as leaving the employer open to the accusation of discrimination.
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    Employers have had to grapple with the issues raised by employee use of the Internet for some years and the rise of online social networking presents another challenge. There is no obvious conclusion here; employers will have to do what they consider to be correct in the light of their business concerns, their employee relations and their business culture. The dilemma posed by the heightened risks surrounding online social networking, whether to trust or restrict employees, does not lead to one "right" answer, but there is certainly a "wrong" answer. Given the ever-growing popularity of such sites and the potential consequences for employers of employee misuse, simply ignoring the issue can only lead to problems for the unwary employer.
sandy ingram

United States, Litigation, Mediation & Arbitration, Didn't See That Coming? Why Many Em... - 0 views

  • Daniels Midland employee who embezzled millions, to the bookkeeper in Maine who took thousands from the church's coffers. The current rough economy and easy access to sophisticated technology are potent ingredients for creating the perfect storm for organizational fraud.
  • Enabling technologies like sophisticated color printers, remote access to linked computers, and data-capturing viruses have played a significant role in how employees can commit and conceal fraud. Even without accessible technology, the lack of segregation of duties and "less paper" (making for fewer paper trails) in the working environment make it easier for employees to commit fraud.
  • While technology and the economy may facilitate fraud, it is an employee's motivation and opportunity that are the most important elements in understanding fraud risk. Motivation (also known as incentives or pressures), opportunity, and rationalization of the fraudulent behavior are the three critical elements necessary for fraud to occur
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  • UNDERSTANDING THE ELEMENTS OF FRAUD
  • Incentives/pressures
  • Opportunity
  • Rationalization
  • Opportunity
  • Using the Fraud Triangle Theory gives us a means to understanding and deterring fraud by identifying and mitigating the elements necessary to enable fraud. Removing weak internal control systems and replacing them with stronger systems, observing employee behavior, and modeling behavior from the top down, can reduce a company's fraud risk tremendously.
  • Opportunity
  • Rationalization is the final component of the 3
  • Opportunity is the one area that an employer can best control
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    "Didn't See That Coming? Why Many Employers are Vulnerable to Employee Fraud"
sandy ingram

Staff fraud 'on the rise'. Majority still undetected and unreportd - 0 views

  • "The vast majority of staff in any organisation are trustworthy and honest. However, businesses are now beginning to realise and understand the scale of the threat posed by the small proportion of staff that act dishonestly and defraud their employer."
  • According to the ACFE 2010 report on occupational fraud the median length of the schemes was 18 months from the time the fraud began until the time it was detected. The median loss caused by the occupational frauds in the report was $160,000. Nearly one-quarter of the cases caused at least $1 million in losses and nine cases caused losses of $1 billion or more.
  • Historically, the most serious threat from staff fraud has been centred on relatively senior employees in management positions. However, the major threat has now shifted down the organisational hierarchy to more junior members of staff, who have access to, and responsibility for, more confidential customer and payroll data than ever before,"
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  • "With as much as 30 per cent of all business failures attributable to employee theft, employers are interested in any device or technique that could detect or prevent employee theft.
  • "Given the present wave of corporate scandals and failures, it is not surprising that organisations are being expected to create strong ethical cultures and select employees who will fit into those cultures. This explains, to some extent, the growing emphasis on integrity testing in the business world.
  • Spitzer has simple advice for businesses who are concerned they may be at risk:
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    "Employee theft and fraud is on the increase - and an Australian start-up company believes it has pioneered a means of early detection. According to a recent survey conducted by KPMG, the total funds lifted from organisations came to $345 million - a significant increase from the $301 million of 2008, totalling 174,914 cases. "Employee fraud is a growing concern for organisations in all business sectors both in monetary and reputational terms," says Alon Spitzer, who has founded Integrity Elements, a company specialising in the new field of ' integrity testing and valuation'."
sandy ingram

Few businesses are likely to be insured against the result of cyber attacks - Security ... - 0 views

  • Businesses are advised to thoroughly review risk management procedures and insurance programmes to ensure they have adequate and relevant cover in place: “The responsibility to get the house in order should lie with an organisation’s Managing Director or Finance Director, and not the IT department alone,” says Simon. “IT defences whilst vital only react to known problems and are not guaranteed to be 100 percent secure. Protection for the whole business and its sustainability is without doubt the safest option.”
  • “The economic downturn has resulted in people of all levels and responsibilities losing their jobs, and those with a detailed knowledge of their former employers’ IT and operating systems may well present a real potential threat, and turn to extortion as a way of taking revenge on their former employer, and of making some money at the same time.
  • According to The Wilson Organisation, insurers and underwriters are predicting a rise in white collar extortion as the recession continues to bite and unemployment figures increase. Worryingly many businesses do not have insurance cover for data or business loss.
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    According to The Wilson Organisation, insurers and underwriters are predicting a rise in white collar extortion as the recession continues to bite and unemployment figures increase. Worryingly many businesses do not have insurance cover for data or business loss. "According to a DTI Information Security Breaches Survey, a third of UK businesses think general business insurance provides full cover for damage to the business arising from data loss," comments Wilsons' Simon Hoare, "but the reality is quite different, with very few businesses likely to be insured against the result of cyber attacks on its most crucial management and business tool - corporate and customer information, most of which is today held on corporate IT systems. "For public company directors, this is in fact in breach of their duties under the Turnbull Report, which requires them to identify, manage and take an informed opinion on the transfer of risks for the business."
sandy ingram

Security awareness: Helping employees really 'get' company policy - CSO Online - Securi... - 0 views

  • Employee awareness of their companies' security policies is high—if you ask the employees. In a survey of 2,000 office workers, software security company Clearswift found almost three quarters, 74 percent, felt 'confident' that they understand their employers' Internet security policies. That is, policy designed to safeguard data and IT security, as well as maintain productivity.
  • But the confidence is misplaced, Clearswift suggests in their summary of the findings, because a third of those surveyed have not received any training on IT security since joining their firm. And more than two thirds of those who have not had recent training joined their organization more than five years ago—a 'technological lifetime,' notes Clearswift.
  • "When security is kept in the shadows and not discussed openly, and only referred to when things go wrong, it is all too easy for office 'folk-law' to become perceived as official policy very quickly. If employees are not aware of when they have broken policies—in some cases because the policy is not even enforced—it can lead to a false sense of security or a belief that what they are doing is actually in line with the corporate policy."
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  • The research raises a question that is frequently discussed, but very rarely measured, among organizations: What kind of awareness training is effective? Is it regular and incremental? Is it most effective when done through courses, formal sessions or informal discussions? And how does an organization gauge its effectiveness?
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    "Research finds while most employees believe they understand their company's security policies, a large number have never received any formal policy education or training. How can an organization really ensure people understand risk?"
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