...points Modify Remove Question Research has shown that ______ detect most frauds. Answer Auditors Customers Vendors Employees Add Question Here Multiple Choice 0 points Modify Remove Question All of the following are methods that organization can adopt to proactively eliminate fraud opportunities EXCEPT: Answer Accurately identifying sources and measuring risks. Implementing appropriate preventative and detective controls. Creating widespread monitoring by employees. Eliminating protections for whistle blowers. Add Question Here Multiple Choice 0 points Modify Remove Question Audits, public record searches, and net worth calculations are used to gather what type of evidence in fraud investigation? Answer Testimonial Forensic Documentary Observational Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is NOT a part of the evidence square? Answer Management evidence Documentary evidence Testimonial evidence Physical evidence Add Question Here Multiple Choice 0 points Modify Remove Question All of the following factors can be associated with high levels of fraud and detract from a positive work environment EXCEPT: Answer top management that does not pay attention to behavior of employees. lack of recognition of job performance. unrealistically low...
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...that causes its victim to suffer an economic loss and/or the perpetrator to realize a gain. A simple working definition of fraud is theft by deception. Legal Elements of Fraud Under common law, fraud includes four essential elements: 1. A material false statement 2. Knowledge that the statement was false when it was spoken 3. Reliance on the false statement by the victim 4. Damages resulting from the victim’s reliance on the false statement In the broadest sense, fraud can encompass any crime for gain that uses deception as its principal technique. This deception is implemented through fraud schemes: specific methodologies used to commit and conceal the fraudulent act. There are three ways to relieve a victim of money illegally: force, trickery, or larceny. Those offenses that employ trickery are frauds. The legal definition of fraud is the same whether the offense is criminal or civil; the difference is that criminal cases must meet a higher burden of proof. For example, let’s assume an employee who worked in the warehouse of a computer manufacturer stole valuable computer chips when no one was looking and resold them to a competitor. This conduct is certainly illegal, but what law has the employee broken? Has he committed fraud? The answer, of course, is that it depends. Let us briefly review the legal ramifications of the theft. The legal term for stealing is larceny, which is defined as “felonious stealing, taking and carrying, leading, riding, or driving...
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...in the detection and prevention of fraud. It is our intent to promote consistent organizational behavior by providing guidelines and assigning responsibility for the development of controls and conduct of investigation. Definition Fraud and Corruption Fraud and corruption fall into four main categories: * Theft; the misappropriation or concealment of assets for personal gain * Corruption/bribery: giving, offering, soliciting or accepting of an inducement or reward, which may influence the action of any person * Falsifying documents, whether accounting or otherwise, for personal gain or the gain for others. * Externally perpetrated fraud against an organization Principles Dingwow is committed to preventing fraud and corruption from occurring and to developing an anti-fraud culture. To achieve this, Dingwow will comply with the requirements of AICPA’s SAS 99, Consideration of Fraud in Financial Statement Audit. SAS 99 defines risk factors for fraudulent financial reporting and theft and can be used as a basic model for assessing the risk of fraudulent financial reporting. The risks outlined in SAS 99 include factors such as management conditions, the competitive and business environment, and operational and financial stability. The risk factors for theft include employee relationships, internal control, and the susceptibility of assets. Fraud/IT Risk Assessment Directors, Senior...
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...imported across national borders at the speed of light (Grant, David and Grab sky 1997). The more overt manifestations of internet child pornography entail a modest degree of organisation, as required by the infrastructure of IRC and WWW, but the activity appears largely confined to individuals. By contrast, some of the less publicly visible traffic in child pornography activity appears to entail a greater degree of organisation. Although knowledge is confined to that conduct which has been the target of successful police investigation, there appear to have been a number of networks which extend cross-nationally, use sophisticated technologies of concealment, and entail a significant degree of coordination. Illustrative of such activity was the Wonderland Club, an international network with members in at least 14 nations ranging from Europe, to North America, to Australia. Access to the group was password protected, and content was encrypted. Police investigation of the activity, codenamed "Operation Cathedral" resulted in approximately 100 arrests around the world, and the seizure of over 100,000 images in September,...
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...Criminology AIU Online CRJS105 March 25, 2016 In today’s society there is a general lack of understanding to the field of criminology. There is a lack of understanding to what a criminalist does and how it differs from what a criminologist does. There is a common misconception to how the public views the differences between crime. The public may not realize that there are national databases that the FBI has that offers statistical information of state and national crimes. Furthermore, the media plays a large role in the misconception of the severity and frequency of crimes, choosing to sensationalize those which they feel will bring in more views. Criminalists have an important part in the justice field. They collect, preserve, and interpret evidence found at crime scenes. Their job is to reconstruct the crime from the evidence. To become a criminalist one must obtain a Bachelor’s degree in biological, physical, or forensic sciences, as well as have accumulated a minimum of twenty-four semester hours of chemistry, biology and math. (Becoming a Criminalist: How to become a Criminalist, n.d.) Criminalist can work in the public sector in local police departments or sheriff departments, on a regional level at state crime labs and medical examiners offices and at the federal level for the FBI, DEA, and CIA. They may also teach at public colleges and universities. If I were to choose to work in the public sector, I would choose a state lab to be able to sort through evidence...
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...that human ingenuity can devise, which are resorted to by one individual, to get an advantage over another by false representation. No definite and invariable rule can be laid down as a general proposition in defining fraud, as it includes surprise, trickery, cunning, and unfair ways by that another is cheated. The only boundaries defining it are those that limit human knavery. Financial Statement Fraud - The intentional misstatement of financial statements through omission of critical facts or disclosures, misstatement of amounts, or misapplication of accepted accounting principles. ======================================================================= Types of occupational fraud and abuse: 1. Asset misappropriation (91.5%) - theft or misuse mostly committed by employees where cash is the most targeted asset 2. Corruption (30.8%) 3. Fraudulent statements (10.6%) Six Types of Fraud: 1. Employee Embezzlement (most common, taking company assets) (creating dummy companies and have employers pay for the goods that are not received) a. direct - no middleman (steal cash, inventory, tools, supplies, etc. b. indirect - usually outside of org (ex vendor) (taking bribes from vendors, customers & non-delivery of goods) 2. Management Fraud - top executives manipulating financial statements (WorldCom, Enron) 3....
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...of STAPLES Office Solutions, Inc., a Business company, is to be the leader in providing innovative products and services that enable our customers to manage document workflow and increase efficiency. To facilitate this goal management is responsible for establishing and maintaining an adequate system of internal controls to provide reasonable assurance that the mission and objectives of the organization are achieved. As a Sr. Financial Analyst on the business information team the main fraud risks that affect my position and may impede STAPLES’s ability to reach these objectives are; theft of company property and resources, procurement fraud, and data/information risks. The first of the three, theft of company property and resources doesn’t involve the $100,000 digital duplicators, or the $50,000 multi function printers manufactured by my company. The most widespread problem involving theft at STAPLES involves ink and toner. STAPLES is a world leader in the manufacture and distribution of business information machines and as such we employee thousand of associates who do nothing but service the machines that are placed at our customers locations. While if one of the $100,000 machines would disappear it would take a million dollars in sales to recoup the profits, the opportunity and risk involved with pilfering these two ton, VW sized machines make them an unlikely target. Each, even the smallest, of the base unit machines purchased or leased from our company has a VPN number...
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...1 of 6 TEST BANK > CONTROL PANEL > POOL MANAGER > POOL CANVAS Pool Canvas Add, modify, and remove questions. Select a question type from the Add Question drop-down list and click Go to add questions. Use Creation Settings to establish which default options, such as feedback and images, are available for question creation. Add Name Description Instructions Modify Creation Settings Chapter 2--Why People Commit Fraud Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is NOT a common rationalization of fraud perpetrators? Answer The organization owes me I'm only borrowing the money No one will get hurt I don’t deserve more. Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is NOT a primary control procedure to minimize the occurrence of fraud? Answer Dual custody Systems of authorization Internal audit department Documents and records Add Question Here Multiple Choice 0 points Modify Remove Question Each of the following is an example of an inadequate control environment EXCEPT: Answer The HR department failed to check an applicant's background and hired someone who had committed fraud in the past. A manager instructs employees not to share passwords, and then shares her passwords with others. A company does not establish codes of conduct and does not have training meetings to teach employees to distinguish between acceptable and unacceptable behavior. The employees know who has...
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...find themselves fighting even tougher battles. (Kitten, 2012) In one such case, here in Georgia, a man has pleaded guilty for the role he played in a $1.3 million phishing scheme that targeted customers of Chase, Bank of America, ADP and Branch Bank & Trust. In his plea, Waya Nwaki admitted to using stolen log-in credentials to intercept and respond to e-mails sent by banks to customers when unfamiliar computers or IP addresses were used to access online accounts. He also admitted to impersonating payroll officers in conversations he had with ADP, which is based in New Jersey. The case resulted from a collaboration between the banks and the Federal Bureau of Investigation against Nwaki, a.k.a. Shawn Conley, who was arrested in December on charges of wire fraud conspiracy, wire fraud, aggravated identity theft, and conspiracy to gain unauthorized access to computers. Each count, to which Nwaki pleaded guilty, carries a maximum sentence of 20 years in prison and a maximum fine of $250,000; sentencing is set for Aug. 15, 2012. According to court records, Nwaki and six co-conspirators, between August 2000 and June 2010, worked across three continents to launch phishing attacks through spoofed websites designed to mimic banks and payroll processors such as ADP. When online users visited the spoofed pages, they were asked to provide confidential personal and financial information, such as dates of birth, Social Security numbers, mothers' maiden names, and online account user...
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...behalf of • Occupational fraud - use of one’s occupation for personnel enrichment through deliberate misuse or misapplication of the employing org’s resources or assets. Categories: Asset misappropriation (steal asset), f.s fraud (manipulate f.s), Corruption scheme (misuse connections). • Employee embezzlement-can be: direct (e.g: asset misappropriation, making dummy company and making employer pay for goods not actually delivered) (from perpetrator to employer); or indirect (corruption, taking bribes from outside) (3rd party involved) • Management fraud- aka financial statement fraud; involves top management’s deceptive manipulation of f.s.; more inclusive • Investment scam-consumer fraud: Ponzi scheme, telemarketing, identity theft, money scam, advance fee scam, letter of credit fraud, etc. • Vendor fraud-overcharge, send inferior goods, charge for goods not shipped; • Customer fraud-not pay, shoplift; • Miscellaneous¬-other • Prosecution: show that perpetrator acted with intent. Criminal-deals with offenses of a public nature/ against society as a whole. Prosecuted under a violated statute. Jail-time or pay fines. Burden of proof: beyond reasonable doubt. Purpose is to right a wrong. Jury must have 12 people. Initiation is determined by grand jury . Verdict is unanimous. Criminal if it involved: bribery,...
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...Abstract Human beings are not always ethical. If we were all always ethical, there would be no need to discuss ethical matters. Rather, we sometimes do things that are not fair, not right, and not in the best interest of humanity or sometimes, ourselves. This research paper focuses on the ethical issues facing information technology. I will be identifying examples of those ethical issues, situations in which they occur, and helpful ways in which organizations can avoid abuse and catastrophes. Introduction Ethics is defined as moral principles that govern a person or group’s behavior. (insert reference) Now that we know the definition of ethics, then what are ethics in information technology? Ethics in information technology are a set of moral principles that police the use of computers and all forms of telecommunications used to receive, send, and store information. With the rise of information technology, more and more professionals have encountered ethical issues in the workplace and finding out there are situations in which ethical problems are becoming more prevalent. Some examples include; (1) problems with privacy and confidentiality, (2) computer security, and (3) computer crimes and computer related crimes. This paper will focus on these examples. Problems With Privacy and Confidentiality Information privacy is the right of an individual to determine what information is collected about them and how it is...
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...fraud is coming from and by whom. This disagreement has been especially tinted by the collapse of big corporations like Enron and WorldCom. The unforeseen fall of Enron and WorldCom traumatized the world as both of these companies received clean bills of health from their auditors immediately prior to their for bankruptcy. Type of fraud Fraud itself comprises a large variety of activities and includes bribery, political corruption, business and employee fraud, consumer theft; network hacking, bankruptcy and divorce fraud, and identity theft. Many find it helpful to separate between internal and external fraud. Internal fraud is usually found by internal auditors. In the Statement of Auditing Standards 99, it’s defines fraud as an intentional act that results in a material misstatement in financial statements. There are two types of fraud considered: misstatements arising from fraudulent financial reporting (e.g. falsification of accounting records) and misstatements arising from misappropriation of assets (e.g. theft of assets or fraudulent expenditures). Examples of fraudulent financial reporting and Misappropriation of assets; * Fraudulent financial reporting. An example of fraudulent financial reporting is a company that ships customers’ goods that have...
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...White Collar Crime: Ponzi Scheme with a Focus on Bernard Madoff NAME College White Collar Crime: Ponzi Scheme with a Focus on Bernard Madoff Most people, when they hear the word “crime,” think about street crime or violent crime such as murder, rape, theft, or drugs. However, there is another type of crime that has cost people their life savings, investors’ billions of dollars, and has had significant impacts of multiple lives; it is called white collar crime. The Federal Bureau of Investigation defines white collar crime as illegal acts which are characterized by deceit, concealment, or violation of trust and which are not dependent upon the application or threat of physical force or violence. Individuals and organizations commit these acts to obtain money, property, or services; to avoid the payment or loss of money or services; or to secure personal or business advantage (as cited in Barnett, n.d., para. 3). White collar crimes consists of such things as embezzlement, bank fraud, forgery, insider trading and investment schemes. This paper is going to focus on a Ponzi scheme, a type of investment scheme, and Bernard Madoff. Madoff is probably one of the most known offenders when it comes to the Ponzi scheme. The U.S. Securities and Exchange Commission (SEC) defines a Ponzi scheme as “an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors” (U.S. Securities, n.d.). In another words, a person...
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...White Collar Crime: Embezzlement and Price Fixing Dr. Stokes White Collar Crime Fall 2012 November 19th 2012 This paper will discuss White Collar crime and the crime of price fixing, antitrust, and embezzlement. There are many different types of white collar crime. White Collar crime is a crime that is not too often viewed as harmful. A White Collar crime is an illegal act committed for monetary gain. The Federal Bureau of Investigation has opted to approach white-collar crime in terms of the offense. The Bureau has defined white-collar crime as “. . . those illegal acts which are characterized by deceit, concealment, or violation of trust and which are not dependent upon the application or threat of physical force or violence. Individuals and organizations commit these acts to obtain money, property, or services; to avoid the payment or loss of money or services; or to secure personal or business advantage.” (USDOJ, 1989, p. 3.) According to the F.B.I. White Collar crime is not a victimless crime. A single scam can destroy a company, devastate families by wiping out their life savings, or cost investors billions of dollars (or even all three, as in the Enron case). Today’s fraud schemes are more sophisticated than ever. Edwin Sutherland coined the term White Collar crime. In 1939 Sutherland coined White Collar as "a crime committed by a person of respectability and high social status in the course of his occupation". People that commit White Collar crime are ordinary...
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...Bank Frauds “Lapses in system make easy the job of offenders to dupe banks” Fraud is any dishonest act and behaviour by which one person gains or intends to gain advantage over another person. Fraud causes loss to the victim directly or indirectly. Fraud has not been described or discussed clearly in The Indian Penal Code but sections dealing with cheating. concealment, forgery counterfeiting and breach of trust has been discusses which leads to the act of fraud. In Contractual term as described in the Indian Contract Act, Sec 17 suggests that a fraud means and includes any of the acts by a party to a contract or with his connivance or by his agents with the intention to deceive another party or his agent or to induce him to enter in to a contract. Banking Frauds constitute a considerable percentage of white-collar offences being probed by the police. Unlike ordinary thefts and robberies, the amount misappropriated in these crimes runs into lakhs and crores of rupees. Bank fraud is a federal crime in many countries, defined as planning to obtain property or money from any federally insured financial institution. It is sometimes considered a white collar crime. The number of bank frauds in India is substantial. It in increasing with the passage of time. All the major operational areas in banking represent a good opportunity for fraudsters with growing incidence being reported under deposit, loan and inter-branch accounting transactions, including remittances...
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