Frank Abagnale Jr., the convicted forger whose life was chronicled in the movie "Catch Me If You Can," told a crowd of CPAs and attorneys that one of the reasons that the annual losses from white-collar crime now top $660 billion -- roughly twice the budget of the U.S. military -- is the alarming lack of ethics, in terms of both formal company guidelines and curricula in school."Every company should have a code of ethics that they give to employees," said Abagnale, the keynote speaker at an anti-fraud conference sponsored by the New York State Society of CPAs and the Foundation for Accounting Education. "And it should be part of the educational curriculum. They don't teach ethics in school."He said that executives at companies are six times more likely to commit fraud than managers, and 14 times more likely than rank-and-file employees. To illustrate the magnitude of modern fraud and theft, Abagnale said that bank robberies last year constituted some $64 million. By contrast, American Express alone recorded $2.5 billion in consumer fraud losses."It's 4,000 times easier to do today what I did 40 years ago," said Abagnale, who served time in prison for forgery and fraud, before becoming a nationally known security consultant to banks and Fortune 500 companies. "Technology has made that possible. Cellphones can snap a picture of someone writing out a check and capture all the information that a forger needs." He added that the evolution and sophistication of printers and scanners have made check copying so simple that even 12-year-olds have been charged with forgery. In 2004, check fraud reached $19 billion. And in addressing the frightening rise in identity theft, Abagnale said that there are now several Web sites that offer personal information -- including a subject's Social Security numbers -- for a small fee. "Identity theft is only limited to one's imagination."
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The Internal Revenue Service, the Treasury and other parts of the government plan to phase out the use of paper checks for payments by the end of this month.
September 12 -
The internal audit profession has been grappling with a greater array of responsibilities beyond checking up on corporate finances, including vetting companies' cybersecurity and use of artificial intelligence.
September 12 -
Plus, AuditDashboard announces 8.0 release with Microsoft 365 and Copilot integration; Audit Sight releases new analytics module for insights; and other accounting tech updates.
September 12 -
The program, designed for young accountants, begins September 24 and includes six virtual sessions worth 12 CPE credits.
September 12 -
David Bundy announces retirement as Dean Dorton CEO; MassCPAs honors 2025 Women to Watch; and more news from across the profession.
September 12 -
License to steal; roll the Tape; Kings and Queens and cons; and other highlights of recent tax cases.
September 11