Fraud Techniques Used in Electronic Theft

1187 Words Jan 29th, 2018 5 Pages
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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