As we drill down into the world of identity theft a little deeper, the Association of Certified Fraud Examiners (ACFE) uses Cressey’s, “Fraud Triangle”, to assist in explaining fraud and how it can be applied to identity theft as there are three (3) factors in the triangle: Pressure, Opportunity, and Rationalization. (ACFE). In the pressure stage, this is usually the motivation of the crime. In the Opportunity stage, the would be criminal has an open window if you will to gain the vital information of the victim. In the final stage of rationalization, the would be criminal now transforms themselves into a modern day Robin Hood where they steal from the victims and give to the poor or in this case; the greedy.
MODULE 3: CIT CASE QUESTIONS 1. The three aspects of fraud - Perceived pressure, Rationalization, and Opportunity were present in the CIT case as follows:
“Abandon all hope ye who enter here” (Alighieri, 1321/1954, p.18) ---- an inscription that is found on the gates of Inferno which foreshadows the fate of the soul of the sinner as said in “Inferno” by Dante Alighieri. The book tackles different natures of sins that individuals have committed and
The book "Fierce Conversations: Achieving Success at Work & in Life, One Conversation at a Time" by Susan Scott, is a guide to tackling challenges and help enrich relationships with everyone important to one's success and happiness through principles, tools, and assignments. Each component is designed to direct the reader
The fraud triangle construct explain these three elements as: • Pressure which is the driving forces behind a fraud committed. It is the circumstances that motivate an individual to commit fraud. There are many reasons that motivate fraud in an organization, but financial pressure is often the most common reason.
(TCO 5) Fraud is an intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party. In our readings and discussions we have seen several examples of fraud in business. Using that experience (1) provide an example of a common fraudulent practice in business with an explanation of how the practice works and (2) name and describe each of the elements of the Fraud Triangle.
Financial Statement Fraud Option #2 The perfect fraud storm occurred between the years 2000 and 2002 involving two of the largest energy and telecom corporations in the United States: Enron and WorldCom. It was determined that both organizations fraudulently overstated assets, created assets from expenses or overstated revenues, costing
The Problem of Fraud and Abuse in the Current U.S. Healthcare System Introduction: Healthcare fraud and abuse has become a major issue for the United States healthcare system and affect many the citizens. The National Health Care Anti-Fraud Association (NHCAA) estimates that the financial losses due to health care fraud are in the tens of billions of dollars each year. “In 2011, $2.27 trillion was spent on health care and more than four billion health insurance claims were processed in the United States. The harsh reality is that some of these health insurance claims are fraudulent. Although they constitute only a small fraction, those fraudulent claims carry a very high price tag.” (Challenge of Health Care Fraud, n.d.) The impact of health insurance fraud has a direct and indirect impact on all of our lives. Fraudulent cases have an effect on how much we pay for health insurance premiums and increase our out-of-pocket costs when we seek healthcare services. For employers-private and government alike-health care fraud increases the cost of providing insurance benefits to employees and, in turn, increases the overall cost of doing business (Challenge of Health Care Fraud. n.d.) . In 2014, the federal government recovered nearly $5.7 billion in health care cases, up $1.9 billion from the prior fiscal year. Of that amount, $2.3 billion was tied to healthcare fraud against the federal government, according to a recent review by the Nashville, TN firm of Bass, Berry & Sims
Every fraud scheme involves opportunities as it becomes the means for the perpetrators to commit the crime. Perpetrators actively pursue opportunities such as analyzing the circumstances that enable the fraud to be committed without getting caught. Pressures to commit fraud are based on various individual factors; for example, debt, status quo, or greed. The rationalization of the crimes are as demoralizing as the crimes, which relate to the pressure the perpetrator is conduced to in committing the crime. Tax fraud, divorce and bankruptcy fraud can all highly relate to the triangle fraud’s underlying factors in providing the source of the crimes that are presented in judicial court systems despite the notorious organizations or ex-love past
Week Four Thoughts The video quotes, “Individuals are afraid of succeeding because of fear” (Mateusz, Brown, Thomas, & Smith, 2013). This quote captured my attention upon my initial viewing of the video titled, “Dream: Motivational Video,” because of the boldness it projected to the audience. The speech is approximately six minutes and was published on July 2, 2013. It provides the audience with a background on how they should make their dreams real. Although obstacles will develop when we are trying to fulfill dreams—the purpose is to separate from negativity and dream big. Even though the fear of failure overtakes our mind, we cannot allow the fear to deter us from living out our dream. Finally, the speech uses clips from movies titled, Into The Wild, Rocky 4, Seven Pounds, Pursuit of Happyness, and A Beautiful Mind that are inspirational and encouraging. For that reason, this synopsis examines the effectiveness of motivational speaking against the concepts that are found in Bateman and Snell’s text to propose that communication, motivating and inspiring people are essential to being an effective leader.
Case 1 From the case, it is easy to believe that Mary Blauser, 51, is a trusted employee of the school district. Therefore, as a trusted employee, she became a trust violator because she had a conception that she had a financial problem that cannot be shared with her employers. For this reason, the fraud occurs because the financial trust position is in her hands and therefore she decided to secretly solve it. The school district was correct to perform an internal audit to predict the failures of their finances and turned to the police for help. The three elements of the fraud triangle involved in this case include the perceived unshareable financial needs which forced Blauser to commit the fraud; the perceived opportunity made her able to apply her own conduct to her situation; finally, the rationalization concept is
A Energy Bar Of Perseverance “ You can only control two things in your life: your attitude and your work ethic” - Ali Krieger.
The type of opinion expressed previously. That the CPA did not update the assessment of control risk. The reasons for the change from an audit to a review. That the audit report should no longer be relied on. Question 7 Individuals who commit fraud are ordinarily able to rationalize the act and also have an
Common Theme: Rationalization Often time, people who commit fraud will use rationalization to justify their actions. A few common methods are to convince themselves that what they are doing is legal and that it is necessary as indicated by both Bucy et al.’s research (2008) and Dellaportas’ work
REFERENCES: Albrecht, Steve W. 2014. Fraud Magazine. Iconic Fraud Triangle Endures: Metaphor Diagram Helps Everybody Understand Fraud. Accessed at the Fraud Magazine’s website (March 6, 2014): http://www.fraud-magazine.com/article.aspx?id=4294983342