“Cyber-crime,” which refers to any criminal activity committed with the aid of or in the arena of the Internet and similar telecommunications, is both a new incarnation of old crimes through a new medium, and a unique entity all its own. It differs from physical crime in four ways. It is easy to commit, requiring minimal resources for great potential damage, being committable in a jurisdiction in which the perpetrator is not physically present, and often, not being entirely clearly illegal. A cyber
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Customer Fraud 2) Consumer Fraud/ Investment Scam 3) Employee Embezzlement 4) Management Fraud 5) Vendor Fraud 6) Customer Fraud Case 7: 1) Fraud is being committed against the firm in this case by Bob. Fraud occurs when a person intentionally cheats or tricks others for their own benefit. Regardless of the magnitude of the charges or the fake excuse given to the reason for the charges, he is intentionally charging non-business lunches to his employer. This is also known as employee fraud, or
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1. Introduction WorldCom, the telecommunications giant, once was the largest telecommunications company in the world, with more than $30 billion annual revenue, $104 billion in assets and more than 20 million customers. John Sidgmore (2002), Ebbers’ successor after the scandal, said “WorldCom is a key component of our nation’s economy and communications infrastructure.” However, the giant collapsed in 2002. 2. The Main Issue: Earnings Management 3.1 Definition of Earnings Management
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corporate scandals that have been emphasized by the media. After all the recommendation and efforts contributed by the various parties to eliminate these scandals, however it is still happening and there is no sign of stopping or reduction of the fraud in the future. Though GP Ocean Food Sdn Bhd is a well-known company, but the former company directors of seafood exporter have been acquitted of charges of submitting misleading information to the Securities Commission (SC) in 2006. Some even
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Business Fraud Amber Boltze ACCT451 November 8, 2013 David Adu-Boateng In April 2011, a number of lawsuits were filed against Sony Corporation for the theft of user data from the PlayStation game network. The lawsuits accuse Sony of negligence and breach of contract for allowing the personal data of more than 100 million on-line video game users to be compromised (Tauriello, 2011). A hacker stole the names, birth dates and possibly credit-card numbers for millions of people who play online
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Enron announced that there was a critical circumstance within California with regard to the supply of Natural gas. Many historians and economists suspected that the Enron executives manufactured this crisis in preparation of the discovery of the fraud they had committed. The executives of Enron were enjoying the funds rendered from investments; the corporation itself was approaching bankruptcy. Enron executives are defined as the criminal activity involving the unlawful and unethical attainment
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balance sheet look better than what it really is. The second issue for the company was making fake accounting entries to make them look like they generated revenues from corporate unallocated revenue accounts. WorldCom had approximately $3.8 billion in fraud of June 2002. For unethical practices WorldCom was capitalizing their products when they should have been expensing them. As well WorldCom was generating revenues to corporate unallocated revenue accounts. To counter this measure the external auditors
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on the issue for an extended period of time there might be no recovery from the issue and the accountant could be fired, or worse, the company could go under. Another situation for misrepresentation of figures could be from hiding money, which is fraud, in relations to taxes or personal gain. The consequences for this are of course a hefty fine and imprisonment. Companies do this very frequently but not all get caught. Companies and accountants will do this to try and squeeze every dollar into their
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agencies and even the government are all victims of both fraud and theft on a daily basis. Business owners are sometimes blindsided by these actions and may be unaware of the fraud due to lack of accounting experience or expertise. In almost every community, large or small, there are news stories about theft from employees. In several cases, unfortunately, the theft is from those entrusted to perform accounting functions. By the time fraud or theft is detected, sometimes thousands and even millions
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Corporation® and WorldCom® Your Name October 31st, 2012 FIN/486 Instructor Enron Corporation and WorldCom In the last decade, two powerful American companies, Enron Corporation and WorldCom, have become the models of accounting corporate fraud. The Enron Corporation was founded in 1985 by Kenneth Law in Omaha, Nebraska. The company later moved its operation to Houston Texas when InterNorth and Houston Natural Gas merged. This American organization offered paper, pulp, electric, communication
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