Assignment:
Using the Internet find a recent case (within the last 18 months) in the news of business fraud, involving systems and/or information breach. Summarize the situation, identify the control issues that were compromised and discuss what could have been done to mitigate the loss. Please refer to the 6 questions below and adapt them to your specific case... (please write about 100 words for each of the six questions you use).
Question 1. How does _______ fit the profile of the average fraud perpetrator? How does he differ? How did these characteristics make him difficult to detect?
Question 2. Discuss how _______ accomplished the three elements of the opportunity triangle (commit, conceal, convert) in embezzling funds from Associated Communications. What specific concealment techniques did _______ use?
Question 3. What pressures motivated _______ to embezzle? How did _______ rationalize his actions?
Question 4. _______ had a framed T-shirt in his office that said, "He who dies with the most toys wins." What does this tell you about _______? What lifestyle red flags could have tipped off the company to the possibility of fraud?
Question 5. Identify several reasons why companies hesitate in prosecuting white-collar criminals. What are the problems with these reasons? What could law enforcement officials do to encourage more rigorous prosecution of white-collar criminals?
Question 6. Identify the primary action each of the victimized companies could have taken to prevent _______'s embezzlement. What other controls could help in preventing future fraud?