...Identify and describe at least two forms of fraud techniques from your research. Include the identity of the government agencies that provide awareness for these types of fraud techniques. Tax fraud is something that seems to be on the rise these days, especially due to those that are completing their returns electronically, which is known as e-filling. With e-filing, evidence of fraud is difficult to find. There are no signed tax forms, envelopes or fingerprints, and e-filing promises quick refunds. Another type of fraud is when an unscrupulous return preparer modifies the bank – routing information on a return so the direct deposit refund will wind up in his/her own bank account, the victim wouldn’t know anything unless the IRS sends an audit, by this time, it would be too late (New York Times, 2013). It is reported that electronic Tax fraud is a major issue for state returns as well, An example that was giving in my research, a 25-year old woman e-filed a fraudulent Oregon state return reporting wages of $3 million and claiming a $2.1 million refund, and the Oregon Department of Revenue actually sent her the refund, without proper investigation. Another instance reported was in October 2013, a hacker stole 3.8 million unencrypted tax records from the South Carolina Department of Revenue (New York Times, 2013). When it comes to Tax fraud, the IRS has many ways of alerting the public on the aware of electronic tax fraud and how to notice if something is indeed incorrect with...
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...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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...Licensed to: iChapters User Licensed to: iChapters User Fraud Examination, Fourth Edition W. Steve Albrecht Chad O. Albrecht Conan C. Albrecht Mark F. Zimbelman VP/Editorial Director: Jack W. Calhoun Editor-in-Chief: Rob Dewey Sr. Acquisitions Editor: Matt Filimonov Associate Developmental Editor: Julie Warwick Editorial Assistant: Ann Mazzaro Marketing Manager: Natalie Livingston Marketing Coordinator: Nicole Parsons Content Project Management: PreMediaGlobal Sr. Manufacturing Buyer: Doug Wilke Production House/Compositor: PreMediaGlobal © 2012, 2009 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706. For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be e-mailed to permissionrequest@cengage.com Library of Congress Control Number: 2010940986 ISBN-13:...
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...Anatomy of computer accounting frauds A. Seetharaman, M. Senthilvelmurugan and Rajan Periyanayagam Faculty of Management, Multimedia University, Malaysia Keywords Fraud, Corruption, Financial reporting, Whistleblowing, Internal control, Corporate governance Abstract This paper introduces fraud as asset misappropriations (85 per cent of cases), corruption and fraudulent statements. Symptoms include accounting anomalies, lack of internal control environment, lifestyle and behaviour. The most effective tools for fraud detection are internal audit review, specific investigation by management, and whistle-blowing. The paper details the fraud investigation process and the role of auditors as fraud examiners. The correlation of fraud perpetrators’ personality with the size of losses is examined. Personality is analysed into age, gender, position, educational background and collusion. A strong system of internal control is most effective in fraud prevention. Fraud prevention procedures, targeted goals and improvements to system weaknesses feature in the paper. Fraud impacts on accounting transactions in accounts receivable, receipts and disbursements, accounts payable, inventories and fixed assets, and financial reporting. The monetary impact resulting from fraud is analysed by the type of victim and the amount of loss. Internal control and good employment practices prevent fraud and mitigate loss. Computer accounting frauds 1055 Introduction Accounting fraud involves an intentional action...
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...criminal activities from the past have changed from breaking-and-entering and robbery at gunpoint, to complete identity theft, fraud, and robbery without lifting a finger via electronic manipulation of banking systems. To help battle these new criminal activities caused by advancements in technology, Congress passed the “Electronic Funds Transfer Act of 1978”, which establish consumer rights and protections when transferring funds via electronic systems. According to "Federal Deposit Insurance Corporation" (n.d.), “the purpose of this title to provide a basic framework establishing the rights, liabilities, and responsibilities of participants in electronic fund and remittance transfer systems. The primary objective of this title, however, is the provision of individual consumer rights” (Electronic Funds Transfer Act). With the establishment of the Electronic Funds Transfer Act of 1978, a new standard was established to protect consumers from theft and illegal monetary transfers from accounts. The act established accountability and liabilities for both consumers and banking institutions to hold parties accountable for funds transfers and illegal accounting activities. Further measures were taken to restrict criminal activities with the establishment of the Computer Fraud and Abuse Act of 1986. The act establish guidance and identified misuse of electronic systems and computers for criminal activities. According to 99 Congress (1986), “the act governs knowingly and with intent to...
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...matter in increase day by day as every day we hear from the news, newspaper and social media, there's a huge number of people who are victims cybercrime. Brenner (2010) in Cybercrime: Criminal Threats from Cyberspace book state, this type of crimes found in 21-century after the development and globalization because people used technology, but they don't have enough information and not aware about this issue. In addition, Cybercrime is the type of criminal crime which is punishable by law and it means that Using technology resources. Such as, the internet for committing serious crimes such as, deception, fraud, theft, copyright violations and extortion through online stalking, harassment, defamation, and invasion of privacy. Moreover, The cybercrime divided into three divisions, the first division is crimes...
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...Forensic Accounting Name Institutional Affiliation Fraud committed on behalf of an organization vs. fraud committed against an organization Fraud commuted on behalf of the organization entails a section of the organization’s employees especially the senior management engaging in activities that are meant to benefit the company but in reality cause serious issue to the larger society the group is supposed to serve. An example of these types of frauds is false bidding scheme that refers to situations that a firm pretends to have followed the bidding system although practically the bidding did not take place. One party is allocated the bid before they are received for evaluation although other parties are invited to offer and as such, it is a form of collusion between a contractor and the party giving the contract (Albrecht, Howe & Romney, 1984). Another example of fraud committed on behalf of the organization is the financial date restatement by the company’s finance department in conjunction with the senior management. While it is usually an acceptance of the accounting errors on the part of the company’s financial team, it can result in financial mistakes in the application of the accounting principles, mathematical errors and the misuse of the financial acts (Ferris, 2013). Another example is in the case of an audit examination of the US banking institutions that according to research by the Bank Secrecy Act, most of these institutions are not performing well but the...
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...Chapter 1 INTRODUCTION 1.1 Definition of Cyber Crime The internet in Bangladesh is growing rapidly. It has given rise to new opportunities in every field we can think of – be it entertainment, business, sports or education. There are two sides to a coin. Internet also has its own disadvantages. One of the major disadvantages is Cyber crime – illegal activity committed on the internet. The internet, along with its advantages, has also exposed us to security risks that come with connecting to a large network. Computers today are being misused for illegal activities like e-mail espionage, credit card fraud, spams, and software piracy and so on, which invade our privacy and offend our senses. “The modern thief can steal more with a computer than with a gun. Tomorrow's terrorist may be able to do more damage with a keyboard than with a bomb”. The term ‘cyber crime’ has been evolved from two words ‘cyber’ and ‘crime’. ‘Crime’ is more or less known to each individual on his own stand point, while ‘cyber’ is almost vague in meaning to the same. So if any time anybody uses the prefix ‘cyber’, we simply mean, he is talking about something is doing online or there has certain networking system. Actually anything related to Internet falls under the cyber category. Computer crime or cyber crime is a form of crime where the Internet or computers are used as a medium to commit crime. Issues surrounding this type of crime have become...
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...SAS 99 AND ITS CHALLENGES TO THE ACCOUNTING PROFESSION Submitted by: Ronneil I. Capones Consideration of Fraud in a Financial Statement Audit, also known as Statement on Auditing Standard 99 was issued in November 2002. It is a revision to improve the deficiencies of SAS 82 with regards to audit process and quality (Marczewski and Akers, 2005, p. 38). The revision of SAS 82 was started prior to the huge accounting scandals that shook public confidence in the reliability of audits. Nevertheless, it gave the accounting profession more focus on tackling the issues of fraud detection on audits Three key fraud risk factors are classified and described in SAS 99; incentive/pressure to perpetrate fraud, opportunity to carry out the fraud, and attitude/ability to rationalize the fraudulent action. Incentives or pressure to perpetrate fraud may arise from the threat of losing profitability as a result of failures in the industry, declining product demand, frequent negative cash flows from operations, threat of losing job because of pressure from management to meet analysts’ expectations are a few examples (Casabona and Grego, 2003, p. 17). Opportunities to carry out fraud are characterized by the following conditions; abundance of transactions with related parties not within the normal course of business, unusual complex transactions coupled with subjective judgments, ineffective monitoring by management, board of directors, and audit committee (Casabona and Grego, 2003, p.17)...
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...NORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEET Learner: Uchendu, Prince | | BTM7102 | Dr. Dmitry Eremin | | | Research Topics of Interest | Assignment 2 | | | Although the main task instructions did not include the turning in of the 8 to 10 topics of interest list required, but it did not exclude its submission either. So I decided to add it at the end of the document post reference section. It can be disregarded if it does not need to be considered as part of the main task submission requirement. Thank you. ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Faculty Use Only ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Dr. Randy Brown Annotated Biographies Oreku, G. S., & Li, J. (2009). End user authentication (EUA) model and password for security. Journal of Organizational and End User Computing, 21(2), 28-43. Retrieved from http://search.proquest.com.proxy1.ncu.edu/docview/199920202?accountid=28180 This article proposes an End User Authentication flexibility...
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...our society. As every weapon has two ways of operation. One is good and essential and the other are bad and not essential. Many times, whenever a new weapon is invented, many people use it unknowingly for the wrong purpose. So to aware them and to make the proper use of the Power of the newly invented weapon, laws is to be formulated and should be implemented. This chapter introduces the cyber law and many terms involved in it. There are two basic definitions of cyber crime. (a) One definition says that ‘cyber crime’ consists of only those offences provided in the Information technology Act, 2000. As per this definition, cyber crimes would mainly be restricted to tampering with the computer source code, hacking and cyber pornography. Cyber fraud, defamation, harassment, e – mail abuse and IPR thefts, would not classify as cyber crimes. (b) In second definition, ‘cyber crime’ is said to be an act of commission or omission with the internet, committed on the internet or through the internet or with the help of the internet or connected with the internet, whether directly or indirectly, which is prohibited by the law and for which punishment, momentary and / or corporal is provided. According to these definitions, the IT Act, 2000 provides punishments for only certain cyber offences and is not applicable to all the cyber crimes. For example, suppose a person threatens any other person with causing death or serious hurt. Then he will be liable for...
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...Introduction In August 2001, it was discovered that the McDonald’s Monopoly game was a fraud. Simon Marketing, which ran the game on behalf of McDonald’s was responsible for the fraud. An investigation was initiated pursuant to a confidential tip. The investigation was led by the Federal Bureau of Investigation and dubbed Operation “Final Answer”. During the investigation to uncover the fraud, the FBI used several different forms of surveillance. In this paper I will describe how the actual fraud was committed and subsequent aftermath of the investigation. Case Study The McDonald’s Monopoly game fraud was discovered in August of 2001, when it was revealed that certain employees of Simon Marketing and associates had colluded to defraud the McDonald’s Corporation in excess of $13 million worth of game prizes over the promotion period (Albrecht et al, 2012, p.210). The Simon Marketing firm was contracted by McDonalds to run their promotional sweepstakes games. The game prizes consisted of cash, vehicles, vacations and/or food prizes. According to Richard Dent (FBI Special Agent in Charge), the main players involved in the scheme were as follows; Linda L. Baker, 49, of Westminster, South Carolina; Noah D. "Dwight" Baker, 49, of Westminster, South Carolina; John F. Davis, 44, of Granbury, Texas; Andrew M. Glomb, 58, of Fort Lauderdale, Florida; Michael L. Hoover, 56, of Westerly, Rhode Island; Ronald E. Hughey, 56, of Anderson, South Carolina; Jerome...
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...PHISHING & ONLINE BANKING FRAUD By, Aditya Ravishankar 5-BBA-LLB ‘B’ 1216452 School Of Law, Christ University TABLE OF CONTENT 1. Abstract ...2 2. Introduction ...3 3. Statement of Problem ...3 4. Scope and Objective ...3 5. Fraud …4 6. Online Banking …5 7. Banking Fraud using Technology …6 8. Cyber Crime & Online Banking Fraud …6 9. Phishing …7 10. Classification of Phishing ...8 11. Indian Scenario …11 12. conclusion …12 Abstract Nowadays, almost every bank provides its clients with access to their accounts over the Internet Banks provide a different range of financial services through their Internet banking channels. Different financial Internet banking applications mostly contain money transferring services, investment services (stock, bond, and mutual funds) and currency exchange services. However, as new technologies upset traditional power balances and so does the Internet. The Internet empowers everyone including cybercriminals. Advancement of technology and rapid progression of the hackers’ ability to access various users’ systems maliciously altered their motivations from curiosity to financial motives. Thus Financial Fraud is on rampant increase. This paper focuses on Online Banking Fraud in a general perspective and also looks into...
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...History of Digital Crimes and Digital Terrorism and Their Common Current Forms Stephanie Fisk Strayer Universality CIS 170 Professor CIANCIOTTA Dec. 12th, 2013 Introduction Computer crime refers to any crime that involves a computer and a network. The computer may have been used in the commission of a crime, or it may be the target. Net crime refers to criminal exploitation of the internet. Dr. Debarati Halder and Dr. K. Jaishankar (2011) defines cybercrimes as: "Offences that are committed against individuals or groups of individuals with a criminal motive to intentionally harm the reputation of the victim or cause physical or mental harm to the victim directly or indirectly, using modern telecommunication networks such as internet chat rooms, emails, notice boards, groups, and mobile phone. Such crimes may threaten a nation’s security and financial health. Problems surrounding these types of crimes have become high profile, particularly those surrounding cracking, copyright infringement, child pornography, and child grooming. There are also problems of privacy when confidential information is lost or intercepted, lawfully or otherwise. Internationally, both governmental and non-state actors engage in cybercrimes, including espionage, financial theft, and other cross-border crimes. Activity crossing international borders and involving the interests of at least one nation state is sometimes referred to as cyber warfare. The international legal system is attempting...
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...husband whom the U.S Marshals refer to as the “modern day Bonnie and Clyde” (Department of Justice, U.S. Marshals Task Force, 2013). Ms. Evans created her own opportunity of access to checks by creating her own. She collected individual data for checks and bank accounts in two ways, falsifying social security numbers which she used to obtain false driver’s licenses. She was eventually detected at the Ohio Bureau of Motor Vehicles which finally identified her use of false social securities numbers. Ms. Evans would use her false identification cards to forge documents. She and her husband ran a gang that used fake W-2s to obtain false checks from the state. However, this was only one of the many check tampering frauds she committed. The second such fraud was for her and her gang to produce fake checks and have members of the gang cash the checks around town. She had a history of forging the SSNs and licenses. Although not highlighted in the article, it would be within her to use the falsified identities on the checks to ensure they could be cashed. The use of these identities would also assist her and her group to get around internal controls of banks or stores and help her conceal the theft. Lastly, she is accused of using company bank account information to forge checks (Ferrise, 2013). She established a pattern of forging checks. She caused companies and people to lose money based on stolen or tampered checks. Therefore completing two types of check tampering:...
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