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Financial Fraud in the Digital Age

FINANCIAL FRAUD IN THE DIGITAL AGE Financial fraud has been around since 300 B.C. However, the rise of the digital age has enabled corporate thieves to pull off some of history's biggest financial crimes, costing the global economy more than $100 billion every year. HAVE YOU HEARD OF THESE MODERN FINANCIAL FRAUDSTERS? THE IDENTITY THIEF This online embezzler steals your personal details and drains your bank accounts dry. He might: ASK FOR YOUR WATCH WHAT YOU MONITOR YOUR POST ON SOCIAL NETWORKING SITES DETAILS VIA ACTIVITY USING A PHISHING EMAIL SPYWARE And he's doing it all without your knowledge. IDENTITY THEFT A report released in December 2013 found identity theft cost Americans over $10 billion more than all other types of $24.7 BILLION OTHER PROPERTY THEFT theft combined in 2012. $14 BILLION In 2013, Shalamar Major was sentenced to an 18 -month prison sentence for stealing patient records from her employer, Boca Raton Regional Hospital. She supplied stolen Social Security numbers to her accomplice Tanisha Wright, who used the details to lodge fraudulent income tax returns online. 3X AS MANY Wright received a 40-month prison sentence. Major must also repay $15,795 to the IRS. SMARTPHONE USERS ARE VICTIMS ... OF ID THEFT. THE CREATIVE ACCOUNTANT The digital age has made it even easier for accountants to cook the books. Online banking makes it easy to divert funds away from their employer and into their own pockets. Creative accountants generally fudge records to cover up their deceit. Accounting Operations Sales Executive/upper Customer service Purchasing management MORE THAN THREE OUT OF FIVE FRAUDSTERS ACCOUNTING EMPLOYEES ARE MORE LIKELY ARE EMPLOYEES OF THE VICTIM ORGANIZATION. TO COMMIT FRAUD THAN ANY OTHER. $4 1,000,000 Australian accountant Demetres Kyriacos Zacharoudes found online banking systems were an easy way to steal more than a million dollars from his employer, EPAC Salary Solutions. Between November 2011 and April 2012 he diverted company funds to his personal bank account and his parents'. He was sentenced to 27 months in jail in June 2013. THE PAYROLL THIEF The payroll accounts form a significant chunk of any company's budget, so it makes sense that many corporate fraudsters target this area. Online banking systems tend to the weapon of choice for most modern payroll thieves. 7.6% Ahel 14.2% <100 EMPLOYEES LARGE FIRMS PAYROLL FRAUD OCCURS IN MORE THAN PAYROLL FRAUD OCCURS ALMOST TWICE AS A QUARTER OF ALL COMPANIES. OFTEN IN BUSINESSE S WITH LESS THAN 100 EMPLOYEES THAN LARGE FIRMS. £123,000 British payroll clerk Julie Barrett took advantage of her position when she paid herself twice her actual salary. Her online banking transactions didn't cause suspicion until her employers, two security firms, She was jailed in June 2013 for a year for embezzling more than £123,000. conducted a financial audit 18 months after the fraud began. THE CORPORATE CRIME GANG The fraudsters above seem They hide under the veil of anonymity and wreak havoc on some of the planet's most profitable organizations through: like small-fries when compared to some of the world's most sophisticated cybercrime gangs. MALWARE SPEAR OTHER TARGETED PHISHING TECHNIQUES 55% 1 IN 3 CEOS ARE VULNERABLE TO A TARGETED EMAIL, OR SPEAR PHISHING, ATTACK. ORGANIZED CRIME RINGS ARE RESPONSIBLE FOR MORE THAN HALF OF ALL CYBER ATTACKS ON FINANCIAL INSTITUTIONS. Russian-Ukranian crime gang Best Inc. stole $1.03 million from Washington State's Cascade Medical Center's payroll account in 2013. The gang used unknowing Americans who responded to a work-at-home scam to launder the money through 96 different bank accounts. New England College School of Graduate and Professional Studies Resources:

Financial Fraud in the Digital Age

shared by CLotus on Jun 19
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Fraud is a universal term – it can be perpetrated in any number of situations. However, the digital age has made personal and business finances more susceptible; this infographic should allow you to...


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