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Financial Fraud

In: Business and Management

Submitted By nkn2c
Words 1717
Pages 7
Accounting 1
Ms. Harrington
2/22/12

Financial fraud was a word rarely herd of before the 2000’s, but as the economy got worse and worse it became a leading headline. Americans began to find out that some of America top companies had been intentionally altering their accounting books to appear stable. Some of these companies were taking the money for personal use and some to convince people to still invest with them. As well as top company’s being fraudulent there were new highs hit as banks had the highest totals ever for fraudulent checks. Also spikes in identity theft and credit fraud. This should be no surprise since the economy started down sliding in 2001and times have gotten harder on every one. It is easy to commit financial fraud in the use. With the biggest motivation being that people can think they can get away with it. A wise teacher once said, a good accountant can make the numbers balance one way or another. This is the case, therefor it has become too easy and to tempting for some people. That explains the harsh prison sentences and threats of hefty charges for fooling around with finical fraud. One way or another the law takes down people who go after the quick buck. Whether it’s a minor check fraud scam or million dollars in fake expenses the law always wins. Finical fraud is every were and as an American citizen it is important to understand finical fraud, examples of finical fraud and how to protect and ovoid finical fraud.
What is financial fraud? Financial fraud is “Financial fraud is a situation in which the legal and ethical management of financial resources does not take place. In most countries around the world, this type of fraud occurs due to deliberate decisions and actions made by people who handle money and other assets on behalf of employers or clients. Accounts Receivables and Payables are deliberately altered to hide the fact…...

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