Think it’s too good to be true? (You’re probably right.)
This week, we have been proud to recognize and support the Association of Certified Fraud Examiners’ 2020 Fraud Week initiative with our special Coffee Break Series. Fraud Week is an annual movement organized by the ACFE to champion the need to proactively fight fraud and help safeguard businesses and investments from the growing fraud problem. We have shared a number of stories and lessons through the eyes of Certified Fraud Examiners and other fraud experts on our team, examining issues such as fraud detection, whistleblower programs, situational awareness, and cyberfraud.
For our final episode, we interviewed Neil Watson, Director, Global Operations for Lowers & Associates. Neil has more than 30 years’ experience in the insurance industry which includes over 20 years working within the Fine Art, Jewellery and Specie (FAJS) sector. It is through this lens that Neil shares three stories of FAJS insurance-related fraud and key lessons that can be applied to any industry:
1. Nickel Wire: Worth How Much?
In this story, Neil encounters nickel wire that was reportedly worth $300/meter and the owner was seeking to insure 6 million meters worth. If nickel wire was worth that much, wouldn’t we all be invested in it? Neil shares how some quick research revealed the ludicrousness of this attempted fraud.
2. Rubies: Really?
Neil has some great stories to tell about ruby gemstones. The usual quarterly sale of all rubies sold around the world is in the neighborhood of $40-$50 million. The highest value single ruby ever sold was $30 million. Here, he shares what it’s like to receive a fantastic photo of a stone someone is wanting to insure that is reportedly worth $250 million. Really?
3. Platinum Concentrate: Unearthing the Truth.
Neil tells the story of the great effort a group of fraudsters went through to present a compelling story of $5 billion worth of platinum concentrate they wanted to insure. The Lowers team went so far as to visit the facility only to unearth the truth of the matter.
Grab a cup of coffee and spend 8 minutes with Neil to hear three stories that will make you believe when something feels too good to be true, it probably is.
We hope you enjoyed this week’s special Fraud Week Coffee Break Series. You can access the full roundup of episodes here. At Lowers Risk Group, we’re intent on helping organizations protect their people, brands, and profits from avoidable loss and harm. If you think we can be of assistance to you, request a meeting and let’s get to work.
