Fraud has become common occurrence in business world. And organizations lose considerable chunk of their hard-earned revenue to fraud. Prevention and Detection are two methodologies to handle a white-collar crime like business fraud. Wisest approach towards any illegal and inappropriate activity is to prevent it from occurring in first place. Prevention is the most economical way of tackling fraud.
Barriers to Fraud Prevention
Fraud prevention is challenged by several barriers which can be broadly categorized into Legal, Political and Social factors.
Understanding the motivation
Factors like opportunity and suitable target, presence of fraud motivated persons/groups, absence of able defense mechanism are drivers of fraudulent activities.
Fraud Guilt Neutralization:
Justification of fraudulent act via guilt neutralization is an added motivation to commit fraud. Public attitude towards insurance fraud as victimless or harmless crime factors to increasing number of fraud cases. Sometimes, especially owing to intermediaries’ role, fraud appear as standard business practice making it a crime no worse than millions other do.
Common guilt neutralization arguments:
Authorship denial – blame shifting or even claiming to have been coerced
Sharing responsibility – ‘no big deal for company’, ‘it’s a rife and every one’s involved’ kind…
What is a Certified Fraud Examiner? These are people who put many hours of hard work into finding any fraudulent acts that a company may be causing. The adventures but, nevertheless, important, relationship between investigators and clients is something that needs to be understood. While some have been captivated by fraudulent acts people portray, some don’t find it as interesting as others do. Although it is a very interesting topic, the certified fraud examiners have skills and training that…
individual or a group with the intention of making more money for organization when caught by the authorities or by any other means comes under Accounting Scandal.
There are several accounting practice, which are developed in order to avoid fraud in accounting process such as Generally Accepted Accounting Principles(GAAP), International Financial Reporting Standard(IFRS)…
Of all the topics available I elected to research and write about the subject of healthcare
fraud because I feel very strongly about our healthcare system as a citizen and as an individual
with regular health needs. If the current system continues to experience negative repercussions
due to the immoral, selfish and illegal actions of others then I believe it will surely diminish the
already unsteady structure.
The definition of healthcare fraud is the deceptive, dishonest and unlawful…
This paper is written to summarize my learnings from the Report to the Nations on Occupational Fraud and Abuse (“Report to the Nations”) published by the Association of Certified Fraud Examiners (“ACFE”). Most sections of the Report to the Nations will be written about individually. The sections of the Report to the Nation that will be discussed are as follows:
1. The Cost of Occupational Fraud;
2. How Occupational Fraud is Committed;
3. Detection of Fraud Schemes;
Donald Cressey’s “Fraud Triangle” is a classic model used to clarify a widely-supported hypothesis of why the occupational offender commits fraud. (Sridhar Ramamoorti , Daven Morrison ,Joseph W. Koletar, 2009)According to the ACFE, occupational fraud is“the use of one’s occupation for personal enrichment through the measured misuse or misapplication of the employing organization’s resources or assets. The source of fraud lies in voracity and the opportunity for deception. It has severely…
Small Business Fraud
Fraud has become a major issue in the world in which we live today. Many would argue that fraud is quickly becoming a norm in today’s society. This abstract and false view on fraud has made its way into the business world and has created an idea that fraud is an acceptable and necessary part of living, specifically within small businesses. The unique aspect of small business fraud, is that the fraudster is possibly an employee within the company. To simply state that small…
Detecting and Preventing Payroll Fraud
Payroll fraud is something that is very dangerous for companies and it is important that business leaders are working to detect and prevent it from occurring. The most common form of payroll fraud is when an employee gains access to funds that they are not entitled to.
For salary employees, this could mean adding an additional, fake employee to the payroll and collecting their wages. Hourly employees may commit payroll fraud by altering the hours that they…
Financial Statement Fraud
Company financial statements provides information that is utilized by investors to evaluate the conduct of managers and to compose economic arrangements (Chinniah, 2015, p. 1). The consumers of the financial statement may consider the financial information received as dependable and appropriate for its function (p. 1). Chinniah indicates accounting standards and regulations have been put in place to try to certify the financial information provided is consistent with…
According to the United States Code under Section 1030, computer fraud is a serious offense and regarded as an illegal act. The United States Code addresses fraud and any related activities in connection with computers. Hence, computer fraud is defined as a deed of exploiting computers, internet, internet devices, and internet services to defraud people, companies or government agencies. Some of the methods and techniques used are DDoS, phishing, social engineering, and viruses to…