249 | Unmasking Corporate Fraud and Cybersecurity: Real Stories and Practical Tips with Stephanie Forbes

In this compelling episode of The Art of Consulting podcast, Stephanie Forbes brings her expertise to the table, discussing the prevalent and often sophisticated issue of corporate fraud and cybersecurity. Throughout the conversation, we navigate the different ways in which fraud can occur within an organization, the impacts it can have, and the steps that can be taken to prevent it. From harrowing stories of payroll fraud to the intricacies of implementing governance models, Stephanie provides actionable insights to secure the financial and informational assets of companies.

Episode Summary:

• [00:00-01:05] Introduction: Hosts recap previous discussions and introduce today’s focus on how funds may be fraudulently siphoned from organizations.

• [01:06-02:41] Stephanie Forbes on Payroll Fraud: Forbes shares insights on payroll vulnerabilities and fraud risks.

• [02:42-03:35] Payroll Fraud Case Study: Example of payroll fraud involving fictitious employees under a single manager.

• [03:36-05:11] Sophisticated Fraud Techniques: Discussion of fraud types, including wire fraud, and their significant impact.

• [05:12-07:20] Cybersecurity Incidents: Forbes recounts a cyber breach resulting in company system loss.

• [07:21-12:47] Cloud System Risks: Exploring cloud access risks and keychain security vulnerabilities.

• [12:48-18:05] Cyberattack Recovery: Strategies for recovery, backup importance, and governance frameworks.

• [18:06-21:16] SMB Cybersecurity Tips: Affordable, effective cybersecurity practices for small to medium businesses.

• [21:17-29:00] Final Tips: Emphasis on advanced authentication and data protection strategies.

• Catch Stephanie next at The P-World Conference in Toronto December 4th.Click here for more info https://thepworld.com/event/the-supply-chain-summit

Episode Highlights:

• [01:06] Money Leak Channels: Forbes agrees with the host on limited money outflow channels and details fraud-prone areas.

• [01:19] Payroll and Procure-to-Pay Systems: Identified as high-risk zones for fraud, with a reference to a 2023 fraud report.

• [02:42] Payroll Fraud Example: Case where one individual received 74 checks, linked to a manager's scheme.

• [03:36] Fraud Complexity: Forbes describes another fraud instance involving last-minute bank account changes.

• [06:21] Cybersecurity Focus: A real-world case where a company lost cloud control due to a cyberattack.

• [07:21] Cloud Security Explained: Forbes clarifies cloud risks, including hackers gaining access to a company’s keychain.

• [12:48] Cyberattack Recovery: Importance of offsite backups and system restoration strategies.

• [18:06] Governance Models: Forbes advocates for governance models covering people, processes, and technology to defend against fraud.

• [21:17] SMB Cybersecurity Advice: Tips on cybersecurity insurance and routine data backups for small and medium businesses.

• [29:01] Final Insights: Forbes calls for barriers between cloud and operational systems and highlights authentication protocol needs.

About Our Guest: Stephanie Forbes is a seasoned executive with over two decades in business, risk management, and supply chain. Her extensive experience has driven high-profile projects across the energy and construction sectors. As interim vice chair of Supply Chain Canada, Alberta Institute, Forbes actively supports supply chain development, with expertise in governance and supplier lifecycle management.

Where to Find Our Guest Online:

• LinkedIn – Stephanie Forbes: linkedin.com/in/calgaryforbes

Website – The Forbes Group