The Association of Certified Fraud Examiners is marking International Fraud Awareness Week this week, with more than 1,400 organizations across the world educating their communities about the threat of fraud and scams and how to stay safe.

The ACFE launched the weeklong event in 2000. It began as National Fraud Awareness Week and became international seven years later. Next year will mark the 25th anniversary.

Last week, the ACFE hosted the ACFE Government Anti-Fraud Summit in Washington, D.C., bringing together experts from inside and outside government to discuss ways to combat fraud.

“In terms of online activity, we always tell people when you put information out into the world, you need to be aware of the fact that you’re leaving digital breadcrumbs that people are going to be able to pull together if, in fact, you really are a worthy target,” said Morgan Adamski, executive director of United States Cyber Command during a keynote session. “Something to be very cognizant of, and limiting their friend zone in terms of who has access to that information.”

She warned of activity by a Chinese government-backed group of hackers. “They are prepositioning in U.S. critical infrastructure so that they can potentially disrupt, degrade and deny those services at a time that they’re choosing to create societal panic,” said Adamski. 

The hackers have been exploiting vulnerabilities in people’s home routers as a way to access critical infrastructure and advised attendees to update the software in their routers.

“The key takeaway is that a lot of the cybersecurity we’re talking about is a little basic, but when we have technology in all aspects of our lives, it can be a little daunting to think about security and the role that we play in that, and how we have to kind of really stay attuned to it,” said Adamski. “Just remember malicious cyber actors are always looking for targets of opportunity. They are hunter gatherers. One piece of revealed information very often leads to a breadcrumb trail of other information, and when we put that together, that can result in compromise.”

The federal government often needs to partner with the private sector, noted Joseph Ford, owner and principal of Newman and Ford Associates. He was formerly executive vice president and chief security officer at Bank of the West and spent 30 years with the Federal Bureau of Investigation, including as the FBI’s CFO and COO.

“Having sat on both sides, with government and private sector financial services, information sharing and building these collaborative relationships really becomes very, very important, but you have to have something to share,” said Ford. “Being able to establish a culture in the private sector that allows you to have that outreach, having working groups of government entities. Think of yourselves as each having a role to play,, whether you’re in the audit function, the law enforcement function or the intelligence function. You all have a role to play in collaborating with the private sector. Having those relationships is important, but how do you translate those relationships into something actionable? I think we all struggle with that.”

He’s seen working groups create information-sharing processes through joint training efforts and joint exercises such as tabletop exercises to help them prepare for a crisis like a cybersecurity or fraud event. 

“I actually do a lot of work with cyber tabletop exercises,” said Ford. “Inevitably, in every exercise, I add a fraud element because most bad guys that are committing cyber attacks, whether it’s a cyberattack on a government agency’s payment system, or a cyberattack to get information, there is usually a fraud element involved.”

Billionaire Ken Griffin cast doubt on two of President-elect Donald Trump’s most loudly heralded economic policy plans: tax cuts and tariff hikes.

Republicans should be mindful of the effect of tax cuts on the growing national debt and the impact of tariffs on the long-term competitiveness of American businesses, Griffin said in an interview with Bloomberg Television’s Sonali Basak at the Economic Club of New York.

“The big problem is we’ve got to get productivity growing,” Griffin said.

Saul Martinez/Bloomberg

The Citadel founder on Thursday suggested the opposite course might be needed: “There’s a real question about where do we need to raise taxes to start to put our house in order.”

He also said Republicans, who will control the White House and both chambers of Congress in January, will need to look at cutting spending as well. He acknowledged that doing so will be difficult, saying that “these are really unpopular decisions for politicians to make.”

Trump has pledged to extend his 2017 tax cuts and eliminate other levies on tips for service workers and Social Security benefits. He’s also pledged to impose a 10% or 20% tariff on all imported goods — with even higher duties on Chinese products — and argues that they will increase revenues while bringing manufacturing operations back to the US.

“I am gravely concerned that that rise of tariffs puts us on a slippery slope towards crony capitalism,” Griffin said. Tariffs give a short-term benefit for domestic companies that produce goods, but in the long term, they harm productivity, he added.

“Those same companies that enjoy that momentary sugar rush of having their competitors removed from the battlefield soon become complacent,” Griffin said.

Griffin said tariffs will ultimately hurt the U.S. economy, which needs to rapidly increase productivity if it wants to meet all its obligations, including paying benefits promised to retiring Americans through programs like Social Security and Medicare.

The Financial Data Transparency Act has significant implications for the modernization of government financial reporting. Against this backdrop, the latest Governmental Accounting Standards Board meeting on Nov. 13 was particularly exciting due to its focus on advancing the digital financial reporting taxonomy — a transformative initiative poised to shape the future of government financial reporting. 

The meeting showcased the board’s progress, deliberations and alignment with emerging regulatory and technological trends, signaling a pivotal moment for the evolution of public sector reporting. GASB senior project manager Paulina Haro presented her report and recommended paths forward in the meeting. 

The board discussed progress in the development of a digital financial reporting taxonomy aimed at modernizing and standardizing electronic reporting practices. This initiative builds on seven years of electronic financial reporting monitoring, evolving from observation and exploration to an actionable framework for voluntary implementation. The taxonomy seeks to enhance usability, data accuracy and efficiency for users, preparers and other stakeholders in the government financial reporting ecosystem. Collaboration with internal teams, former fellows and external experts has paved the way for the board to propose a clear path forward.

The project will initially focus on GASB GAAP requirements, with future expansions considered based on stakeholder requests. Haro emphasized that using the term ACFR, or the Annual Comprehensive Financial Report, was problematic and too broad as a starting point. The intent is to start with a foundational structure and move forward from there. 

The digital taxonomy will cover key components of financial reporting, including basic financial statements, notes to financial statements and required supplementary information such as management’s discussion and analysis. Phase One will establish a foundational framework for GAAP reporting, avoiding selective prioritization of data points to maintain the integrity and completeness of GASB standards. Haro emphasized it’s important to create the impression the Taxonomy Team is not “picking and choosing what is essential and not.” The users’ voices would be critical to the process. Subsequent phases may incorporate additional elements like supplementary and non-GAAP reporting components, pending stakeholder input and board decisions.

Board members emphasized the importance of retaining GASB’s monitoring activity, which ensures the board remains informed about technological advancements and their implications for government financial reporting. Monitoring provides critical insights into evolving user and preparer needs, as well as the broader impacts of technology on financial reporting processes. This understanding is key to maintaining the relevance of GASB standards and ensuring alignment with modern reporting practices. The monitoring activity will function as an ongoing effort, enabling the board to anticipate and respond to technological shifts effectively.

Stakeholder engagement will play a crucial role in shaping the taxonomy. The board proposed forming a consultative group to guide the project. This group will include representatives from diverse sectors, such as accountants, auditors, data technologists and software vendors. By bringing together expertise from various fields, the group aims to ensure the taxonomy meets the needs of all stakeholders while addressing technical and practical challenges. Board members highlighted the importance of including participants who understand both accounting principles and technological systems to bridge gaps and enhance collaboration.

The board plans to publish an initial exposure document for public comment in 2025. This document will introduce selected components of the taxonomy, including financial statements, notes and required supplementary information, to showcase its architectural design and functionality. These components were chosen to provide a comprehensive but manageable overview, allowing stakeholders to evaluate the taxonomy’s structure and usability. The board acknowledged the challenges of presenting complex technological and accounting concepts in an accessible manner, committing to including explanatory materials tailored to different audiences.

The project’s timeline reflects both ambition and caution. Board members praised the team for exceeding expectations in their progress so far but emphasized the need to balance urgency with thoroughness. The taxonomy’s design must address diverse stakeholder needs while aligning with emerging regulatory frameworks such as the Financial Data Transparency Act. The board committed to monitoring FDTA developments to ensure the taxonomy remains relevant and adaptable to future requirements.

Looking ahead, the board reaffirmed its commitment to the project as a priority initiative, with updates and deliverables integrated into upcoming technical plans. GASB chair Joel Black said this will be a technology project, with its own classification and will not end with a new standard. Beginning in February 2025, the board will receive detailed presentations on taxonomy architecture and design choices, while continuing to refine the framework based on internal deliberations and external feedback. By maintaining a collaborative, phased approach, the board aims to deliver a taxonomy that enhances the accuracy, usability and efficiency of government financial reporting in an increasingly digital landscape.