Inexplicable facts syndrome

‘Inexplicable’ facts syndrome 

Unfathomable facts may often turn out to be indicators of underlying frauds. The process of risk assessment is similar I to a health check up carried out by a doctor. A doctor assesses the health of a patient not only by standardized evaluations of blood pressure or pulse rate but…

The Birbal Litmus Test

Tests that reveal the true colours of perpetrators can be useful To test whether a solution is acidic or basic, a litmus paper is placed in it; it turns red it is acidic, if it turns blue it is basic. Just as the litmus paper identifies acidic and basic properties…

Shady Deals

Frauds where the system’s resilience is tested before an attack are Trojan Horses In the Trojan War, the Greeks were unable to penetrate through the well-fortified city of Troy. After several unsuccessful efforts, they deceived the Troy defense by pretending to retreat and leaving behind a large, innocent looking wooden horse,…

The tenets of Ockham’s razor

The tenets of Ockham’s razor 

Razing down ambiguities and assumptions in any theory is extremely effective in reaching the truth. William Ockham was a 14th century logician who pronounced the ‘Rule of simplicity’. One interpretation of the rule is that if a conclusion is based on facts and assumptions, it is advisable to raze or…

Cheating the system 

It is wrong to depend on any ‘fraud proof’ system believing it to be risk free. King Akbar had challenged the legendary Birbal to a security test. He stated that if a perpetrator was kept under surveillance, he could be prevented from stealing. Birbal differed by saying that an intelligent perpetrator…

Profits through perseverance

Profits through perseverance

In risk assessments even a small clue should be followed to its logical end. There are times when there is resentment or opposition to a particular course of action that one wants to take in a given situation. However, it would be wrong to give up the attempt because there…

Using psychic solutions 

Technical frauds may be overcome by influencing thought patterns Certain types of frauds are beyond the comprehension of the management Take the case of material sent for processing to vendors outside a factory. If the vendors replace or mix a certain percentage of scrap in the processed material sent, it…

Mirror truths 

Comparing expenses of replicated systems at identical units in an organisation can reveal discrepancies. Certain plastic components require processing using moulds. Very often manufacturing companies use services of vendors possessing such moulds, for processing plastic components used in their products. The managing director (MD) of one such company was disturbed…