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Submitted By tong7370
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CHAPTER 5
COMPUTER FRAUD
SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
5.1 Do you agree that the most effective way to obtain adequate system security is to rely on the integrity of company employees? Why or why not? Does this seem ironic?
What should a company do to ensure the integrity of its employees?
The statement is ironic because employees represent both the greatest control strength and the greatest control weakness. Honest, skilled employees are the most effective fraud deterrent. However, when fraud occurs, it often involves an employee in a position of trust. As many as 90% of computer frauds are insider jobs by employees.
Employers can do the following to maintain the integrity of their employees. (NOTE:
Answers are introduced in this chapter and covered in more depth in Chapter 7)


Human Resource Policies. Implement human resource policies for hiring, compensating, evaluating, counseling, promoting, and discharging employees that send messages about the required level of ethical behavior and integrity



Hiring and Firing Practices: Effective hiring and firing practices include: o Screen potential employees using a thorough background checks and written tests that evaluate integrity. o o Remove fired employees from all sensitive jobs and deny them access to the computer system to avoid sabotage.



Managing Disgruntled Employees: Some employees who commit a fraud are disgruntled and they are seeking revenge or "justice" for some wrong that they perceive has been done to them. Companies should have procedures for identifying these individuals and helping them resolve their feelings or removing them from jobs that allow them access to the system. One way to avoid disgruntled employees is to provide grievance channels that allow employees to talk to someone outside the normal chain of command about their grievances.

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