Financial fraud is a big problem for small businesses. Small companies tend to lose almost twice as much money from each occurrence of fraud, compared to comparable incidents at medium-sized and large corporations, according to a recent study.
This classic fraud scheme was pioneered by Charles Ponzi during the decade before the Great Depression. The most notorious contemporary example is Bernie Madoff. Many other perpetrators of Ponzi schemes have not yet made headlines – and their frauds are actively attracting new victims.
“Art is what you can get away with." – Andy Warhol
There can be consequences to doing secret multi-million-dollar deals in a largely unregulated market. Nobody can conduct effective due diligence in the dark.
Collectors, dealers, investors and other art market participants must realize the obsession with market opacity is proving counterproductive.
Successful investigations by the FBI Cyber Division have led to numerous convictions of computer hackers and perpetrators of other web-facilitated crimes such as economic espionage, state-sponsored attacks, and online recruiting by terrorist organizations. So why does the Internet Crime Complaint Center (IC3) focus solely on self-reported complaints from consumers when tallying the total financial impact of online crime?