Inside Job

A mid-sized Oil and Gas company operating out of Texas was involved in extensive litigation, and during the process, a number of key areas of the business were identified as having potential for abuse or fraud. The key area of concern was the payroll system where it was believed there was significant risk of manipulation or fraud.

Intelysis was retained to conduct a fraud review, which revealed a lack of separation of duties and insufficient oversight for the payroll administrator. The review continued and it was further discovered that the payroll verification system included a check system to ensure that the employee was legally entitled to work in the USA. A more detailed look at individual employee accounts revealed that one form of proof of employability accepted by the company was a state prison inmate card. Needless to say whilst this did meet the requirements of the test, it raised a host of other issues and by the time the review was complete, the company had completely revamped both their hiring policy and their payroll systems and was much better protected against fraud and internal theft.

Online Security

A large leasing operation based in Canada approached Intelysis to examine their automated leasing system which provided in-store online lease approval instantaneously for leases ranging from $1,500 – $15,000 on a range of products from computers to recreational vehicles. The product was a hit in the marketplace, and the advantage of being able to approve credit online in the store at the time of purchase was significantly boosting the sales of their client products. The system hit a snag when an enterprising criminal figured out a way to defeat the system and Intelysis was retained to perform a fraud review on the system, identify potential weaknesses and plug the loopholes.

With our detailed knowledge of the fraudsters mind set and methodologies, the Intelysis team was able to devise a series of tests using dummy identities, and this together with a careful review of the system’s methodology, coupled with interviews with both the vendors using the leasing software and the employees of the leasing company provided all the information that was needed.

After the review, Intelysis was able to identify a number of key areas of exposure to fraud, and devised additional measures to close the security gaps and add a number of additional elements that greatly enhanced the overall security of the system. Once implemented, the system immediately proved effective and the fraud problems did not reoccur.