...committed and what are the crime trends? Who commits them and why do people commit them? How much money is at stake, lost and recovered? How can such crime be reduced – by prevention or punishment? Online and desk-based reviews of books, reports and articles Legislative and case-law analysis, including sentencing research Consultations with business, government and the community Surveys of households, businesses, offenders and victims Analysis of media reporting of crime Research methods Dissemination of findings • Reports, books, articles, conference papers, roundtables, online, media Cyber crime concepts Organised Crime e.g. OMCGs Identity Crime Cyber Crime e.g. off-line crimes e.g. ID theft Internet Crime e.g. Offensive Content Phishing Financial Crime e.g. Home renovation scams A chronology of cyber crime Cloud computing risks 2009 Wireless vulnerabilities 2007 M-commerce attacks 2006 Phishing 2002 Cyberstalking 1998 Cyberterrorism attacks 1997 Spam 1995 Identity crime 1995 Online piracy 1995 Botnets 1993 Child exploitation1990 ATM fraud 1985 Funds transfer fraud 1985 Extortion 1980 Denial of service 1980 Creeper virus 1971 Computer hacking 1970 Telemarketing scams 1965 Phreaking 1961 Organised...
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...preparing the financial statements. GAAP consist of three important fields:- 1) Basic accounting principles and guidelines. 2) Various accounting standards issued by FASB. 3) Generally accepted practices in the industry. All those companies which are providing its financial statement to public is required to follow the GAAP while preparing the financial statements. Further, if the company is a listed entity then the federal law of the nation requires the company to get its accounts audited by an independent certified public accountant. There has been various corporate scams in past years which has made it compulsory for the regulatory bodies to create various laws and amend the existing laws so that more accurate and transparent financial statements can be prepared. Few of the corporate scams which has created more awareness towards the need of accurate financial reporting are “The REPO 105” scam by Lehman, this fraud helped the banks to improve their leverage and cap ratios in order to gain more credit rating and in turn increasing the customers and investors. Due to lack of accounting disclosures and loop holes in the...
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...The Wolf of Wall Street The Wolf of Wall Street, Jordan Belfort, committed a classic pump and dump scam, under the guise of his investment firm, Stratton Oakmont. This crime went on for several years before the company was investigated, closed, and Belfort sent to prison. The following paper outlines this case in detail. The Crime & How it was Committed The securities industry is governed by the Securities Exchange Commission, which exists in part to ensure that the capital markets are trustworthy. When investor trust in the markets is compromised, this makes it more difficult for firms to raise capital. Thus, it is imperative for any country to have securities regulators that ensure a fair and honest capital market system, including the stock market. There are many ways to commit fraud in the stock market, one of which is the pump and dump scheme that Stratton Oakmont committed. The principle is fairly simple. The company buys a large quantity of penny stocks. They then use their brokers to cold call people and convince them to invest. These people, who are usually fairly wealthy but not sophisticated investors, are convinced to put their money into this worthless penny stock. The influx of capital starts to push the stock price upward, so the investors are convinced that this is a good investment – that they are seeing the gains they were promised materializing. Then, when a large enough amount of capital has been gathered, the investment house begins to...
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...all fraud occurs in small companies. That is a disturbing fact considering that the estimated fraud loses for business of all sizes was nearly $2.9 trillion in 2009. Fraud occurs so frequently in small business for a couple of reasons. A common reason is that small companies typically have small or even single-person accounting staffs and limited internal controls; lack of separation of duty. It is typical to have the accountant also be the office manager and receiving clerk. Problems can arise if for no other reason than on one double checks the work. Besides being more susceptible to errors and fraud, small businesses also are less likely to discover them because financial audits are almost never performed. It seems, as though a new scam comes to light every day, with electronic-media inspired frauds such as phishing and spoofing, joining old, low-tech fraud themes. The Association of Certified Fraud Examiners (ACFE) periodically publishes Report to the Nation on Occupational Fraud and Abuse. The article attempts to define emerging fraud techniques as well as identify the economic impact these crimes have on our economy. Frauds perpetrated against small businesses continue to cost more on average than those against larger...
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...Ponzi Scheme Keller Graduate School Forensics Accounting The Bernie Madoff scam truly made history. Bernie Madoff probably would not have been able to prolong this scam without the continued help of the Accounting Firm of Friehling & Horowitz CPAs PC, who at last reported purported to audit financial statements and disclosures of Madoff firm for the last 17 years. Ponzi schemed to help Madoff by trying to go undetected because of Friehling deceiving investors and regulators by declaring that Madoff enterprise had clean audit records. Ponzi’s scheme enabled Madoff by falsely stating in annual audit reports that F & H audited Madoff financial statements pursuant to GAAP, including the requirements to maintain auditor independence and perform audit procedures regarding custody of securities. F & H purported that the financial statements conformed to GAAP and the Friehling reviewed internal controls at Madoff firm. According to SEC complaint, Friehling knew that the firm regularly distributed the annual audit reports to Madoff customers, and that reports were filed with the SEC and other regulators. The complaint alleges these statements were “materially false”. The SEC alleges that Friehling merely pretended to conduct minimal audit procedures of certain accounts to make it appear that he was conducting an audit, and then failed to document his purported findings and conclusions as required under the GAAP. If properly stated those financial statements...
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...Effect of Unethical Behavior Article Analysis Potential acts leading to unethical practices and behavioral in accounting are evident. These acts are in violation of the Sarbares Oxley Act of 2002 (SOX). The Sarbanes Oxley Law was approved as a consequence of lots of corporate scams, this corporates intend to provide fake statements for potential investors, Recent articles write and posted on numerous websites are reviewing how to identify potential factors leading to unethical behavior or practices. But the most recent and trustful article is called “Becoming a More Relational Firm in the Post-Sarbans-Oxley Era”. As expressed by the article, the effects of SOX Law has influenced fiscal reports in a lot of ways. The law has required that impartial companies must audit the fiscal reports in which positions of the auditors must be rotated frequently, to ensure that scam cannot be made by the same auditor from year to year, and it’s apply in different sections: * Section 303: This section needs senior management to approve the accuracy and dependability of fiscal reports, meaning that the fiscal reports must be sign for the CEO or CFO of the organization they need to certify that they analize the reports and assure that the reports are accurate. The executives will be held accountable for any mistakes or irregularities by signing authentic records being aware that they will be held responsible for any intend to commit fraud * Section 302: Management needs to submit...
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...Submission of Research paper as a part of curricular activity. Forensic Accounting: A new dynamic approach to investigate fraud. SUBMITTED BY: Aniket Desai (12BBL016) Alakananda Duggirala (12BBL016) Rut Shah (12BBL051) SUBMITTED TO: Dr. Pranav Saraswat For the academic session July to December 2014 1 PREFACE This research project is carried out as a part of curricular activity for the course of Financial Audit, in semester V for the programme B.com LLB (Hons.). We have tried our best to do justice with the project and put it in black and white the research we've done in the last three months. Regards, Aniket Desai Alakananda Duggirala Rut Shah Date: 2th November, 2014 _______________________________ Signature of the researchers. 2 ACKNOWLEDGEMENT We owe a debt of gratitude to Dr (Mr.) Pranav Saraswat, the faculty for the course of Financial Audit, for his constant guidance and support which helped us to conceive this research project. It is also my duty to record my thankfulness to Dr. Atul Bhatt, the librarian of the Institute of law, Nirma University for keeping handy useful resources which helped me collect information and datas which was very important for my doctrinal research work. Finally, I would like to take this opportunity to thank my friends and colleagues for the support whenever required. Regards, Aniket Desai Alakananda Duggirala Rut Shah 3 DECLARATION We hereby declare that this piece of written work...
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...MVE220 Financial Risk The Madoff Fraud Shahin Zarrabi – 9111194354 Lennart Lundberg – 9106102115 Abstract: A short explanation of the Ponzi scheme carried out by Bernard Madoff, the explanation to how it could go on for such a long period of time and an investigation on how it could be prevented in the future. The report were written jointly by the group members and the analysis was made from discussion within the group 1. Introduction Since the ascent of money, different techniques have been developed and carried out to fool people of their assets. These methods have evolved together with advances in technology, and some have proved to be more efficient than other. One of the largest of these schemes ever carried out occurred in modern times in the United States, it was uncovered as recently as in late 2008. The man behind it managed to keep the scheme running for over 15 years in one of most monitored economic systems in the world. The man in charge of the operation, Bernard L. Madoff, got arrested for his scheme and pled guilty to the embezzling of billions of US dollars. It struck many as unimaginable how such a fraud could occur in an environment so carefully controlled by regulations and...
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... The earliest records of security dealings in India are meager and obscure. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only few brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States to Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as “The Stock Exchange“). Trading was at that time limited to a dozen brokers. These stock brokers organized an informal association -the Native Shares and Stock Brokers Association, Bombay. The Bombay Stock Exchange (BSE) was recognized in May 1927 under the Bombay Securities Contracts Control Act, 1925...
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...Caleb Olumuyiwa N/T 2580 Introduction To Information Security Week 2 A ssigment Define Key Terms. Adware | A software program that collects infor- mation about Internet usage and uses it to present targeted advertisements to users. Asset | Any item that has value to an organization or a person. Attack | An attempt to exploit a vulnerability of a computer or network component Backdoor | An undocumented and often unauthor- ized access method to a computer resource that bypasses normal access controls. Black-hat hacker | A computer attacker who tries to break IT security for the challenge and to prove technical prowess. Cookie | A text file sent from a Web site to a Web browser to store for later use. Cookies contain details gleaned from visits to a Web site Cracker | A computer attacker who has hostile intent, possesses sophisticated skills, and may be interested in financial gain. Dictionary attack | An attack method that takes all the words from a dictionary file and attempts to log on by entering each dictionary entry as a password. Disclosure | 1. Any instance of an unauthorized user accessing protected information. 2. Refers, under HIPAA, to how a covered entity shares PHI with other organizations. Ethical hacker | An information security or network professional who uses various penetration test tools to uncover or fix vulnerabilities. Also called a white-hat hacker. Firewall | A program or dedicated hardware device that inspects network traffic passing through...
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...BACKGROUND BRIEF: JAMAICAN LOTTERY SCAM This label is ready to print onto Avery Label #8931 NOVEMBER 2012 CARIBBEAN POLICY RESEARCH INSTITUTE BLOCK H, ALISTER MCINTYRE BUILDING UNIVERSITY OF THE WEST INDIES, MONA KINGSTON 7, JAMAICA TEL: (876) 970-3447 (876) 970-2910 FAX: (876) 970-4544 EMAIL: INFO@CAPRICARIBBEAN.ORG Copyright © 2012 CaPRI All rights reserved. This work was carried out with the aid of a grant from the International Development Research Centre, Ottawa, Canada. This page was left blank intentionally. BACKGROUND BRIEF The Lottery Scam “Advance fee fraud on the internet is a current epidemic that rakes in hundreds of millions of dollars per year. The advent of the internet and proliferation of its use in the 1990s makes it an attractive medium for communicating the fraud, enabling a worldwide reach.”1 Advance Fee Fraud gets its name from the fact that an investor is asked to pay a fee 2 up front or in advance of receiving any proceeds, money etc. These types of scams are not unique to Jamaica and in fact have existed in other parts of the world for some time, as evident from the signature by member and non-member States of the Council of Europe of the Convention on Cybercrime in Budapest, on 23 November 2001, long before this became a major issue for Jamaica. In 1999, the Jamaican Government initiated the liberalization of the telecommunications industry with full liberalization taking effect in March 2003. Since then there has been a...
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...Conducting Financial Reporting Research: Related Party Matters Dom Panetta Accounting 305 Abstract The topic of discussion involves the Rigas family and their Adelphia Communications Corporation scam. In 2000 they tried hustling investors into believing that their company was doing fine, when in fact they were embezzling over a billion dollars. In their year end 10-K report they noted, under related party, that they paid out over 30 million to its shareholders, which are primarily family members. The question that this paper will answer is whether or not their disclosure was justified. Conducting Financial Reporting Research: Related Party Matters Through the years 1980 and 2000 their was a plethora of embezzlement going on within huge companies, Enron being the big one. With all these white collar crimes going on, it is hard to keep track of them. There was one scam that doesn’t get the acknowledgment it deserves. Adelphia Corporation and the Rigas family started out as a small communications company in 1952 that went public in 1986. Mainly dealing with cable television, the family owned company became the 6th largest provider in the country. Despite all of its success, in 2002 the company filed for bankruptcy after it disclosed 2.3 billion in off balance sheet debt (Revsine, L., Collins, D., Johnson, W., Mittelstaedt, H., & Soffer, L. 2015). When the problem was investigated further is showed that the Rigases were spreading around money to family owned entities...
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...The 2nd Indonesia International Conference on Human Capital and Knowledge Management (IC-HCKM 2015) Transition of Malaysia towards Knowledge Society by 2020: Ethical Consideration on the Use of Electronic Gadget in Malaysia Schools Nalni Devi Subramainama, Amizah Mohd Taffy Ganb, Devakumaran Rajamohanc a,b,c Master in Engineering Business Management Razak School of Engineering and Advanced Technology Universiti Teknologi Malaysia International Campus Kuala Lumpur, Malaysia Abstract Due to demands to full fill necessity of K-economy towards Vision 2020, Malaysia is now on the race to create more Information Technology (IT) literate. Education sector has been targeted to be an introduction sector to implement Information and Communication Technology (ICT) tools to advance learning and teaching processes. As such, Government of Malaysia has been working on few strategies to introduce electronic gadget applications in Malaysian schools to improve quality of education inclusively. In this study, we have conducted a survey to study the needs and acceptability of electronic gadgets such as mobile phones in schools, then analyzed outcome of survey accordingly. The result of the survey shows level of acceptance on the use of electronic gadget in schools and ethical consideration has been considered to decide best decision to overcome its negative impacts. Based on ethical consideration, the use of electronic gadgets in schools should be permitted as it brings more...
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...The purpose of this paper is to identify three information security threats, potential risks, and the related vulnerabilities to an organization. We will go in depth to identify these harmful threats and describe each potential risk an organization may have to endure. We will also discuss three major information security threats dealing with SunTrust Bank. SunTrust bank headquartered in Atlanta, Ga operates 1,497 branches and over 2, 200 ATMs in the South and some in the North. SunTrust bank has over $175 billion in assets in the US and the money is increasing even more. The major assets that SunTrust has invested needs to be fully protected against potential information security threats from people trying to steal money or do harm to the organization. One of the major threats that SunTrust bank and other banks have to be cautious of is distributed-denial-of-service attacks or DDoS. A DDoS attack is designed for an attack on a single target by a group of compromised system infecting the target with a Trojan. There are two types of attacks associated with DDoS attacks, which are network-centric and application layer attack. There are two types of DDos attacks a network centric attack which overloads a service by using up bandwidth and an application-layer attack which overloads a service or database with application calls (Rouse, 2013). The most well known DDoS attack was committed by the Izz ad-Din al-Zassan Cyber fighters in 2012. These attacks were distributed in two phases:...
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...title. In his thesis proposal on “Computer Vulnerability Analysis”, Krsul (1997, p. 2) starts his “Definition of Vulnerability” section by delving into the fact that there was no industry accepted definition that precisely defines “computer vulnerability.” Krsul goes on to ask us to review three of the most commonly accepted definitions of the day—remember, this is 1997!—that he will use to form the basis of this thesis (Krsul, 1997, pp. 2-3): 1. Bishop and Bailey define a vulnerability as “a characterization of a vulnerable state which distinguishes it from all non-vulnerable states.” (Bishop & Bailey, 1996, p. 2). Their report focuses on computer vulnerabilities from a state configuration view where computers are state devices, and a vulnerability is any flaw in software that allows a user (whether authorized or unauthorized) to transition the system from an “authorized state” to an “unauthorized state.” We commonly reference these types of vulnerabilities today as buffer overflow vulnerabilities, input validation vulnerabilities, improper system configuration, etc. 2. Longley and Shain define a vulnerability using several different methods. "1) In computer security, a weakness in automated systems security procedures, administrative controls, Internet controls, etc., that could be exploited by a threat to gain unauthorized access to information of to disrupt critical processing. 2) In computer security, a weakness in the physical layout, organization, procedures...
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