Financial Fraud in Canada

7212 Words Apr 15th, 2011 29 Pages
FINA 402 – Short-term Financial Management Term Project Financial Fraud in Canada

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Analysis presented to
Ms. Julie Slater by Anouck Cinq-Mars (9197710)
Anthony Liscio (9097856)
Angelo Vaccaro (9356290)
Joe Vincelli (9234403)
Kyle Zarmair (9055177)

John Molson School of Business
April 4th 2011

Table of Contents

Evolution of financial fraud in Canada…………………………………………...……4

Current types of fraud Canadian financial institutions
A) Internal fraud…………………………………………………………………………..5 Identity theft……………….……………………………………………………….6 Illegal insider trading………………………….…………………………………...7 Wire fraud…………………………….……………………………………………7 Bank fraud…………………………….…………………………………………....8

B) External types
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Part 2 – Current types of Financial Fraud

A) Internal Fraud
Internal fraud consists in “a type of fraud that is committed by an individual against an organization. [Furthermore], a perpetrator of fraud engages in activities that are designed to defraud, misappropriate property, or circumvent the regulations, law, or policies of a company”[8]. Not only has the incidence of internal fraud increased in frequency because of the availability of sensitive information such as client details or confidential business documents; moreover, this type of fraud is found in various types of organizations, ranging from corporations, public service institutions and financial institutions. Our analysis will concentrate on the most common and prolific types of internal fraud, namely identity theft, insider trading, loan fraud and wire fraud. Interestingly, PriceWaterhouseCooper conducted a survey that revealed that the “demographics of a typical fraudster are as follows: males (85% of cases), 31-50 years (72% of cases), reached high-school level (50%), Bachelor’s or post graduate degree (50%) and middle or senior management (52%)”[9].
Identity Theft - Internal identity theft is “one of the fastest growing crimes [in Canada], and the Internet [can be perceived as a threat because of the] speed and ease with which illegal transactions can be

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