Commercial fraud increases in the Bahamas as a result of global recession.
By Chester Robards, The Tribune
Edmund Rahming comments
Commercial fraud is on the rise in the region and in the Bahamas as a direct result of the global recession, the managing director of forensic accounting, corporate recovery and insolvency firm, Krys Rahming and Associates (Bahamas), said yesterday, as it prepares to host a seminar on related topics next Friday.
Edmund Rahming said unemployment in the economy produces an increase in fraudulent activities as families and individuals fall on hard times, often choosing to justify fraud over more ethical activities.
“Anytime you see there is unemployment or the economy goes downhill or people hit hard times, there will be an increase in fraud,” he said. “Fraud has always been something people rationalise.”
Countries
Mr Rahming said countries like the UK reported an increase in fraud in 2009 and 2010 to-date over 2008.
A BBC online article on Online Banking Fraud reported phishing attacks (where people are tricked into entering personal data online) were up 16 per cent in 2009 over 2008. and online banking losses reaching £59.7 million, an increase of 14 per cent over 2008.
In the Bahamian context, the National Insurance Board saw fraud increases when it launched its unemployment benefit programme.
Mr Rahming’s firm, though only six months in business, is slated to partner with the Royal Bahamas Police Force’s fraud unit to share their corporate fraud expertise.
Mr Rahming’s firm is a dedicated forensic accounting firm that is equipped to extract sensitive data from computer hard drives, and as an accounting firm, analyse and document the data. According to him, the firm also has the experience to handle myriad matters regarding insolvency, forensic accounting and financial matters, having handled international matters involving Viacom, Ingersoll Rand, Erikson and Lucent Technology.
He said insolvencies and liquidations have also been on the increase across the world, and the Bahamas is seeing its share as well. “There are pressures on the [Bahamas’ Financial] system, but it is still holding its private wealth and trust business in that particular niche market,” said Mr Rahming. “Therefore there should be work in what we do.”
Timing
“It is good timing for the Caribbean in general for someone who only does this to enter the marketplace.”
The insolvency and dispute consultation seminar being hosted by Mr Rahming’s company at the British Colonial Hilton is expected to cover topical issues of arbitration in the Bahamas, and the hot-button issue of the Bernard Madoff scandal and crossborder insolvency.