The accounting department.

That’s the upshot of the Association of Certified Fraud Examiner’s 2010 Report to the Nations. Based on a study of more than 1,800 cases of corporate fraud, the study found that the typical fraudster:

• works in accounting
• is a male age 36-45
• has a college degree, and
• has worked for company between one and five years.

While most frauds were committed by employees or lower level managers, instances involving executives were much more costly — three times as expensive as those committed by managers, and nine times as costly as those committed by employees.

These are just typical patterns, of course, and don’t mean other areas should be ignored. But the study’s results provide a good reminder to companies on what to watch out for.

It’s easy to easy assume most fraud is committed by low-level, recent hires, but it’s the established employees that businesses trust who can do the most damage.

The read more on the report, click here.

Secure on-demand printing solutions specialist Troy Group recently announced a new secure toner that will be available on select HP printers.

The toner contains a hidden red dye that’s released when someone tries to use a solvent to alter the document, creating a “highly visible and permanent red stain.”

Troy says the toner can used on existing security paper to provide a new layer of fraud protection. The company pointed out some examples of documents that could make good use of the ink, including educational transcripts and grade reports, certificates of ownership, vital records, legal documents, medical prescriptions, and checks.

Agents are seeing a a big uptick over the past few months in what’s known as automated clearing house (ACH) fraud.

The targets of the scam: small businesses, municipal governments and schools.

How it usually works: Cyberthieves steal banking logins and passwords using keylogging software installed on finance officers’ computer via a malicious e-mail attachment. The criminals can then shuttle thousands or even millions of dollars from victim’s account using online banking to add payees to the account.

One solution: Designate a single computer in your organization to be used for online banking transactions –- nothing else. Restrict admin rights so that only IT can install software or security patches.

To read the FBI’s warning, visit here.

It’s called Expense-A-Steak, and it’s supplied by a New York City steakhouse to its patrons. The customer, who has just blown, say, $325.55, on a lunchtime filet mignon and a few martinis with some “business associates,” can enter the amount due on the bill.

Presto! The program makes up a set of routine-looking receipts that spread the cost out, and hopefully run under the radar of the accounts payable department.

The receipts, delivered as a PDF that you can print out, include phony tabs for taxi rides, sandwich shops and stationery supplies. The receipts even have typical receipt flaws like dog-eared corners and that running-out-of-ink fuzziness.

The restaurant sees it as a marketing ploy at a time when the recession is hitting higher-priced eateries. The goal is to get a little PR buzz, not abet real fraud. It’s a big joke. But they also admit that they’ve had scores of Web hits from Web domains such as Bank of America, Citigroup, Morgan Stanley, and so on. As a restaurant spokesman has said “We know people have gotten a kick out of it and the restaurant has been busy.”

A great joke – but you might want to give a heads-up to the accounting department.

New York’s Attorney General Andrew M. Cuomo recently announced that Dell and its subsidiary, Dell Financial Services (DFS), are going to pay the Attorney General’s Office $4 million in restitution, penalties and court costs to resolve charges of fraudulent and deceptive business practices that scammed consumers across New York State.

The company will also compensate victims its business practices. To get the money, folks will have to prove they’ve bought a Dell in New York in the past several years and fill out a form with the AG’s office. Forms are due by December 15, 2009.

The settlement follows a decision of the New York Supreme Court, Albany County, which went along with Attorney General Cuomo’s claims that Dell engaged in fraud, false advertising, deceptive business practices, and abusive debt collection practices.

The court ruled that Dell engaged in bait and switch advertising with respect to:

• its “no interest” financing promotion and misleading consumers to believe they’d qualified for it
• failing to adequately disclose the terms of its “next day” service contracts, and
• failing to provide consumers with warranty service and promised rebates.

Along with the $4 million in restitution, penalties and fees, the settlement requires Dell to make sweeping changes to its advertising, sales and financing practices.

Among other things, Dell will be required to advise customers before they purchase an “at-home” or “on-site” service contract that they may be required to engage in diagnostic activity over the telephone that includes the customers themselves opening computers to access internal components.

The settlement also requires Dell to disclose in its advertisements the estimated percentage of consumers who will actually qualify for promotional financing.

According to the Court’s decision upholding the Attorney General’s lawsuit, Dell deprived customersof the technical support to which they were entitled under their warranty or service contract by:

• Repeatedly failing to provide timely on-site repair to consumers who purchased service contracts promising “on site” and expedited service;
• Pressuring consumers, including those who purchased service contracts promising “on site” repair, to remove the external cover of their computer and remove, reinstall, and manipulate hardware components; and
• Discouraging consumers from seeking technical support; those who called Dell’s toll free number were subjected to long wait times, repeated transfers, and frequent disconnections.

It seems the consumers will get the last word in this sorry scenario. Any New York resident harmed by Dell’s deceptive conduct can file a claim for restitution using special claim forms that are posted on the Attorney General’s website.

The question remains, however: If Dell’s New York customers are entitled to restitution, are businesses and consumers located in other areas?

Almost 25% of companies say employee theft has become a bigger problem than they’re used to in the past year, according to a recent survey by the Institute for Corporate Productivity.

No surprise here: The common items taken were office supplies like  ink and toner cartridges.

In one extreme example of toner theft, a former Penn State University employee was recently arrested for embezzling nearly $45,000. Her method: She’d buy ink and toner cartridges on the university’s dime, resell them to an office supply store and pocket the cash.

She was caught after a budget administrator noticed a large uptick in the amount of toner being purchased.

Toner and ink are attractive targets for dishonest employees: They’re small and easy to take home. Also, companies purchase them on a constant basis, making it difficult to notice irregular and suspicious activity.

Some ways to prevent theft: Keep cartridges locked up, remind employees that taking supplies home is not OK, and regularly audit purchasing records.