By EDWARD R. HENRY and LIM CHIA YING
news@thestar.com.my
KUALA LUMPUR: There are three sides to any financial fraud – opportunity, desire and target.
“Remove any one element, the triangle can’t be formed and the crime will not occur,” said JR Associates regional consultant John R.
He was commenting on The Star’s report on a contract scam involving school supply contracts which saw many suppliers being cheated into paying high fees by conmen posing as Education Ministry and department officials.
Some traders, fearing they would lose the contracts, are known to have used their life’s savings – one even sold off his house – to pay the conmen.
John said a person can eliminate or reduce the risk of being cheated by first curbing “the opportunity for crime.”
This means limiting access to personal information and not divulging personal details when asked over the phone or online, he said.
John, who has several associate offices abroad, said: “When the opportunity for fraud is frustrated from occurring, losses can be avoided and time and emotional distress can be saved.”
Regarding the “desire” that serves as the motivation for the crime, John said: “It is usually due to some financial problem that can’t be solved through legitimate means.
“Once he (the criminal) has the desire, he looks for an opportunity and a target.”
John added that fraudsters see themselves as “good people caught in a web of bad circumstances” and do not view themselves as criminals.
Explaining the third leg in the triangle – target – he said it refers to anyone who appears to be an easy victim.
“An easy target will not put any resistance and would believe or accept what is being told.
“This makes it easy for the criminal to brainwash the person into accepting a scam,” added John, who has spent 30 years in risk management for expatriates.
“In order to protect ourselves we must restrict the personal information we give out by being cautious in discussions regarding wealth, lifestyle and social activities.
“Shred all documents that have personal information relating to the business and do not leave receipts at the ATM machine or petrol kiosk,” he said.
He added that it was cheaper to prevent fraud from happening than to try to detect the crime.
“By the time someone realises he has been cheated, the cash given is gone and chances are slim that it will be recovered. Moreover, it is costly and time consuming to investigate a fraud,” he said.
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