BRENTWOOD, Tenn., July 30, 2012 /PRNewswire/ -- In a public meeting held last Thursday by the Commodity Futures Trading Commission's (CFTC) Technology Advisory Committee (TAC), Chris Schellhorn, CEO of Confirmation.com, presented a proposed solution that addresses the issues recently surfaced from the $200 million Peregrine Financial Group (PFGBest) fraud. The purpose of this public meeting was for panelists and TAC members to explore a range of technology solutions to enhance the protection of customer funds held in segregated accounts.
During his presentation, Schellhorn explained how Confirmation.com's technology, which uncovered the multi-year PFGBest fraud, would protect investor funds by helping to uncover or deter fraud. The solution Schellhorn proposed allows for transparency into the cash balances for both the auditors and the investors.
"Financial frauds at PFGBest and MF Global have certainly shaken investor confidence in the futures markets, and I applaud the CFTC for taking swift action in finding ways to prevent fraud and the misappropriation of customer funds," said Schellhorn. "As a market leader of electronic audit confirmations, Confimation.com is proven to catch fraud and deter future fraudsters. I look forward to working with the CFTC and the futures industry on a timely solution that restores investor confidence back into the marketplace."
Manual confirmation procedures are inefficient and make it difficult for auditors to detect and identify fraud during an audit. By verifying the authenticity of each participant to the confirmation, Confirmation.com's technology reduces the chance for financial fraud to go undetected, resulting in fewer and less costly investor losses down the road.
"This meeting was a significant step in the right direction to address the inherent weaknesses of using paper confirmations to confirm bank balances," said Brian Fox, founder and chief marketing officer of Confirmation.com. "In addition to making some industry reforms to strengthen the regulatory system, the CFTC is looking for a technology solution for the futures industry that will provide greater safeguards on investor funds. Since Confirmation.com routes confirmation requests to the intended third party, this deters potential fraudsters from stealing investor funds and concealing the missing funds from regulators."
Confirmation.com is the creator and world's leading provider of secure electronic audit confirmation services. It processes over $1 trillion in confirmation information annually for a majority of public companies, as well as private companies, non-profits and government agencies. In addition to its bank confirmation solution, the company provides solutions for more than 30 different types of audit confirmations including accounts receivable confirmations. Confirmation.com is the Preferred Provider of Electronic Confirmations for the AICPA Trusted Business Advisor™ Solutions Program and is endorsed by the American Bankers Association. Confirmation.com has also received numerous awards including being a multi-year alumnus on the Inc. 500 list for 2010 and 2011. Several hundred In-Network responding companies including all of the Top 10 banks in the U.S. and over 8,000 accounting firms in more than 100 countries trust Confirmation.com for their audit confirmation needs. For more information, visit Confirmation.com.
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