Fraud Techniques Used in Electronic Theft

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Fraud Techniques Used in Electronic Theft ONE: Identify and describe at least 2 forms of fraud techniques; what are the government agencies that monitor these kinds of fraud? First it should be noted that there are three types of fraud that result in losses for companies and organizations. Those three are: a) "theft of physical assets" (theft occurs in 24% of fraud cases worldwide and 26% in the U.S.); b) "information theft" (21% of digital fraud cases worldwide and 24% in the U.S.); and c) "management conflict of interest" (14% of cases worldwide and 16% in the U.S.) (Verschoor, 2013, p. 13). One of the fraud techniques reported by Professor Curtis Verschoor, who serves as editor with IMA, occurs due to the presence of a dishonest person within the company. In other words, this kind of fraud is in-house, not committed by a hacker at some distant location. This particular aspect of digital fraud is considered "insider" fraud. Verschoor retrieved his information from the 2012-2013 Kroll Fraud Report, which revealed that 67% of fraud reported in 2012 was insider-based. That percentage went up from 60% in 2011 and from 55% in 2010, Verschoor explains. And as to how many perpetrators were involved in these insider fraud cases, Verschoor writes that 84% involved just one insider person (p. 14). A second fraud technique reported by the Kroll document is "cyber-based data destruction," which are becoming "increasingly common. Rather than stealing a corporation's

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