Bahamas lacks 'proper reaction' to fraud crimes

The Tribune–There is a “lack of proper reaction” to fraud activity in the Bahamas, a fraud examiner asserted yesterday, adding that with this crime having spiked in the US over the past two years, this nation is likely to have seen similar activity increases.

Edmund Rahming, president of the Bahamas’ chapter of the Association of Certified Fraud Examiners, said the organisation, formed in January 2011, intends to be proactive in enhancing public knowledge of fraud and how to respond to and prevent it.

“There’s definitely a need to build public awareness and provide training on the types of fraud that are out there, what businesses are seeing.

“Someone may be operating a business and think that something is unique to them when everyone is experiencing those difficulties,”: Mr Rahming said.

“So being able to train people and talk about the types of fraud we are seeing is important; to give them clues on how to deal with fraud is important. That’s what this organisation is all about.”

He noted that “fraud can happen anywhere – churches, government entities, private ventures and individuals”.

Mr Rahming, who in his capacity as managing director of KRyS Global is presently participating with the Bahamas Chamber of Commerce and Employers Confederation to conduct an economic crime survey among Bahamian business operators to determine, among other things, the level of fraud-related activity in the Bahamas, said it is likely that this nation has seen an increase in such crimes similar to the US.

“In 2010, the US saw a 30 per cent increase in fraud. In the first quarter of 2011 there was a further 35 to 40 per cent increase, because of the recession.

“We are so closely tied to the US I would estimate it’s pretty much the same thing, though you don’t have the same systems of reporting and surveying in the Bahamas,” Mr Rahming said.

The ACFE president suggested that businesses could benefit from the implementation of “monthly fraud assessments”, which would highlight “areas of exposure” to fraud, as well as the provision of more stringent internal controls to mitigate its occurrence.

He added that a business’ “culture” in dealing with fraudulent activity can be overlooked as a determinant of whether fraud occurs.

“If the staff see the Board are very concerned about fraud, and about the exposure to fraud an organisation has, if things are done properly in line with the policies or procedures, and if big performers are punished if they do something wrong, that’s important,” he said.