Fraud, Finances, and Finding a Balance With Dr. Chad Albrecht
Unemployment is currently at an all-time high, but what makes this current climate different than the great depression? Wyatt and Albrecht discuss just that; the stock market crash, the great depression, and how it compares to the COVID-19 times we live in now.
While it is true unemployment numbers have not been as high since the great depression, Albrecht brings up a good point; we have the safety net of unemployment benefits the great depression did not. The shock to the economy is very similar but overall the government is more prepared in this day-and-age. The great depression also happened within the financial system, while Covid-19, much like 9/11, happened externally; meaning it was an external stimulus that made the market and the economy react. When things happen within the financial system that shows an issue within the core structure. And although many business and individuals are struggling from loss of income, COVID-19 has made people react more positively than other events in the past.
Further along they talk about multi-level marketing, or MLM’s in Utah, family-owned businesses, large corporations and the fraud that occurs in all these organizations. Research shows U.S businesses lose 5-6% of their annual revenues to fraud in various forms. They also look into why fraud is so prevalent, the kinds of fraud that are committed, why dealing with families in business are tricky and ways to save yourselves from a potentially bad venture. Hint: if things are too good to be true, they probably are.
During his 15 years of research, at times, Albrecht has found it hard to do studies because no one wants to allow the media information about the fraud happening in their company. This type of information getting out can affect a company’s reputation and stocks. But discreteness can affect a company in negative ways as well. Other items that negatively affect a company is letting your guard down with the people you trust. Utah is guilty of this, and in this episode, we dive into why Utah has such major issue with something known as infinity fraud. Tune in and listen to our researchers instead!
Written by Ari Romo
Chad Albrecht is an Associate Professor of Strategy & the Director of MBA Programs at Utah State University. Chad has received numerous awards and has written a variety of books surrounding his 15-years of research in fraud-related topics, being quoted in the Times of London, In-Flight Magazine and various other news agencies.