CHAPTER 5



CHAPTER 5COMPUTER FRAUD???????? ?? ???? ???????Learning Objectives: ????? ??????1.Explain the threats faced by modern information systems.??? ????????? ???? ????? ???? ????????? ???????2.Define fraud and describe both the different types of fraud and the process one follows to perpetuate a fraud.????? ???????? ???? ?? ?? ??????? ???????? ?? ???? ???????? ???? ???? ?????? ????? ????????3.Discuss who perpetrates fraud and why it occurs, including the pressures, opportunities, and rationalizations that are present inmost frauds.?????? ?? ????? ???????? ????? ????? ??? ?? ??? ?????? ?????? ?????????? ???? ???? ?????? ?? ???? ?????? ???????? 4.Define computer fraud and discuss the different computer fraud classifications.????? ???????? ?? ???? ??????? ??????? ????? ??????? ???????? ?? ???? ??????? 5.Explain how to prevent and detect computer fraud and abuse.??? ????? ??? ???? ???????? ???????? ?? ???? ???????Jason anticipated the following questions that management was going to ask:???? ????? ?? ??????? ??????? ??????? ???????:1.What constitutes a fraud, and is the withholding problem a fraud??? ???? ???? ????????? ??? ??? ??????? ????? ?????? ?2.How was the fraud perpetrated? What motivated Don to commit it???? ?? ?????? ????????? ?? ?? ??????? ??? ?????????3.Why did the company not catch these mistakes? Was there a breakdown in controls?????? ?????? ?? ???? ??? ???????? ?? ??? ???? ??? ?? ????????4.How can the company detect and prevent fraud???? ???? ?????? ??? ???? ?????????How vulnerable is the company’s computer system to fraud??? ??? ????? ???? ??????? ?? ?????? ?? ?????? ?????????Introduction ??????Our society has become increasingly dependent on accounting information systems.???? ???????? ????? ???? ?????? ??? ???? ????????? ?????????As system complexity and our dependence on systems increase, companies face the growing risk of their systems being compromised.????? ???? ??????? ??????? ????????? ?????? ????? ??????? ????? ??????? ?? ???? ?????? ??????A recent survey disclosed that???? ??? ???? ???????67 percent of companies had a security breach67% ?? ??????? ????? ??? ????More than 45 percent were targeted by organized crime???? ?? 45% ?? ??????? ????? ????????? ???????? ???????60 percent reported financial losses60% ?? ??????? ????? ?? ????? ?????The four types of threats to an AIS a company faces are explained in Table 5-1 on page 149.??????? ??????? ?? ????????? ????? ????????? ????????? ???? ?????? ?????? ?????? ?? ?????? 1-5 ???? 149Learning Objective One????? ???????? ?????Explain the threats faced by modern information systems.??? ????????? ???? ????? ???? ????????? ???????AIS Threats ????????? ????? ????????? ?????????Four Types of Systems Threats: ????? ????? ?? ????????? ??????Natural and political disasters??????? ???????? ?????????Software errors and equipment malfunctions????? ????????? ?????? ?????????Unintentional acts??????? ??? ????????Intentional acts (computer crimes)??????? ???????? (????? ???????)1.Natural and political disasters??????? ???????? ?????????Fires, excessive heat, floods, earthquakes, high winds, war, and attacks by terrorists???????? ??????? ???????? ???????? ?????? ???????? ????? ???????? ?? ??? ??????????World Trade Center in New York City (9/11)??????? ??? ???? ??????? ??????? ?? ??????? (11/9/2001)Flood in Chicago????????? ?? ??????Heavy rains in Mississippi and Missouri Rivers??????? ??????? ?? ???? ?????? ???????Earthquakes in Los Angeles and San Francisco??????? ?? ??? ?????? ???? ?????????Attacks on government information systems by foreign countries, espionage agents, and terrorists??????? ??? ????? ????????? ???????? ?? ??? ??? ??????? ????? ??????? ???????????Software Errors and Equipment Malfunctions????? ????????? ?????? ?????????Losses due to software bugs are at almost $60 billion a year.??????? ??????? ?? ????? ?? ????????? ?????? ??? 60 ????? ????? ?????More than 60 percent of the companies studied had significant software errors in the previous year. For example:???? ?? 60% ?? ??????? ???? ??? ????? ??????? ????? ????? ????? ?? ????????? ?? ??????? ???????. ??? ???? ??????:Bugs in new tax accounting system were to blame for California’s failure to collect $635 million in business taxes.????? ?? ???? ??????? ????????? ??? ?? ??????? ?? ??????? ???? ??? ???? 635 ????? ????? ?????? ?? ????? ??????????There have been a number of massive power failures that have left hundreds of thousands of people and many businesses without power.??? ???? ??? ?? ???????? ???????? ???????? ???? ???? ???? ????? ?? ????? ??????? ?? ??????? ???? ??????A software bug in Burger King’s software resulted in a $4,334.33 debit card charge for four hamburgers. The cashier accidentally keyed in the $4.33 charge twice.??? ??? ????? ?? ???? ????? ???? ???? ?? ??? 4,334.33 ??????? ???????? ?? ????? ?????? ????? ????? ???????. ???? ??????? ???? ?????? 4.33 ????? ?????? ????? ??????.Unintentional Acts??????? ??? ????????The Computing Technology Industry Association estimates that human errors cause 80 percent of security problems.????? ??????? ????? ????? ????????? ???????? ?? ??????? ??????? ????? ?? 80 ?? ?????? ?? ??????? ???????Forrester Research estimates that employees unintentionally create legal, regulatory, or financial risks in 25 percent of their outbound e-mails.????? ????? ?????? ??????? ?? ???????? ?? ??? ??? ??????? ?????? ???????? ????????? ?????? ?? 25% ?? ????? ?????? ?????????? ???????Programmers make logic errors. Examples include the following:????????? ??????? ?????? ?? ??????? ??????? ????? ??????In Japan, a data entry clerk at Mizuho Securities mistakenly keyed in a sale for 610,000 shares of J-Com for 1 yen instead of the sale of 1 share for 610,000 yen. The error cost the company $250 million.?? ???????? ???? ????? ?????? ?? ?????? ??????? ??????? ???? ?? ???? ????? ????? ??? ??610000 ???? ?? ???? ???? ??-??? ????? ?? ???? ????? ?? 1 ?? ????? ?????? ????? 610000 ?? . ??? ????? ??? ?????? 250 ????? ????? ??????A bank programmer mistakenly calculated interest for each month using 31 days. Resulted in more than$100,000 in excess interest paid.????? ??? ?????? ??? ????? ??????? ??? ?? ?? ??? ?? 31 ????? ??? ???? ????? ?? 100 ??? ????? ?????? ????? ??? ???????An error in a Fannie Mae spreadsheet resulted in a $1.2 billion misstatement of its earnings.??? ??? ?? ???? ?????? ???? ??? ?? ????? ????? 1.2 ????? ????? ?????? ?? ???????UPS lost a cardboard box with computer tapes containing information, such as names, Social Security numbers, account numbers, and payment histories on 3.9 million Citigroup customers.???? ???? ?? ?? ?? ????? ?? ????? ?????? ??? ????? ????? ????? ??? ???????? ??? ??????? ?????? ?????? ????????? ?????? ????????? ?????? ????? ?? 3.9 ????? ?? ????? ???? ????A programmer made a one-line-of-code error that priced all goods at Zappos, an online retailer, at $49.95—even though some of the items it sells are worth thousands of dollars. The change went into effect at midnight, and by the time it was detected at 6:00 A.M., the company had lost $1.6 million on goods sold far below cost.??? ????? ??????? ??? ?? ????? ?? ??? ????? ????? ???? ???? ???? ??????? ?? ?????? ????? ??????? ??? ????????? ?? 49?95 $? ??? ????? ?? ?? ??? ?????? ???? ?????? ????? ???? ?????????. ??? ??????? ??? ??????? ??? ????? ?????? ?????? ????? ???? ?? ????? ??? ?? ?????? 6:00 ?????? ???? ?????? ?? ???? 1.6 ????? ????? ?????? ?? ????? ???? ???? ???? ?? ??? ???????Intentional Acts (Computer Crimes)??????? ??????? (????? ???????)The most frequent type of computer crime is fraud. This is where the intent is to steal something of value.???? ????? ????? ??????? ?????? ?? ????????. ???? ???? ??? ???? ???? ??? ????? ??? ?? ????The threat can also be in the form of sabotage, in which the intent is to destroy or harm a system or some of its components. Focus 5-1 “electronic warfare” describes recent cyber-attacks.??????? ???? ???? ?? ???? ?? ??? ???????? ? ????? ?? ????? ?? ????? ????? ??????? ?? ??? ???????. ??????? 1/5 "????? ???????????" ??? ??????? ??????????? ???????Information systems are increasingly vulnerable to attack. In a recent three-year period, the number of networks that were compromised rose 700 percent.?? ??? ????????? ???? ???? ?????? ??????. ?? ???? ??????? ?????? ???????? ????? ??? ??????? ???? ????? ????? 700?Example of security breaches: consider the case of OpenTable, a restaurant reservation service that did not design its cookie properly.???? ??? ???????? ???????: ????? ????? ????-????? ???? ??? ?????? ???? ?? ????? ??? ????? ???????? ???? ????A cookie is data that Websites store on your computer. The cookie identifies the Websites to your computer and identifies you to the Website so you do not have to log on each time you visit the site.??? ????? ???????? ?? ???????? ???? ???? ????? ????? ??? ???? ????????? ????? ??. ???? ??? ????? ???????? ??????? ??????????? ??? ???? ????????? ????? ??? ????? ?? ?????? ???? ??? ?? ???? ???? ?????? ?????? ?? ?? ??? ???? ???? ?????? ??????At OpenTable, the customer number stored in the cookie was very easy to change.?? ????-????? ??? ????? ??? ??????? ?????? ?? ??? ????? ???????? ?????An experienced programmer opened an account at OpenTable and, in less than an hour, wrote a program that cycled through all the customer numbers and downloaded most of the company’s database. ??? ????? ?? ??? ?????? ???? ?? ????-???? ?? ?? ??? ?? ????? ???? ???????? ???? ?? ?? ???? ????? ???? ????? ??????? ???????? ??? ???? ?? ????? ?????? ??????Learning Objective Two??? ?????? ??????Define fraud and describe the process one follows to perpetuate a fraud.????? ???????? ???? ?? ?? ??????? ???????? ?? ???? ???????? ???? ???? ?????? ????? ????????INTRODUCTION TO FRAUD ?????? ?? ????????Fraud is any and all means a person uses to gain an unfair advantage over another person. Legally, for an act to be considered fraudulent there must be:???? ?? ?? ??? ????? ???????? ??? ?? ?????? ??? ???? ??? ????? ??? ???? ??? ???. ?? ??????? ?????????? ??? ?????? ????? ??????? ??? ?? ???? ????:A false statement, representation, or disclosure????? ????? ?? ?????? ?? ?????A material fact, which is something that induces a person to act???? ????? ??? ????? ???? ???? ????? ???? ?????An intent to deceive????? ???????? ??????A justifiable reliance; that is, the person relies on the misrepresentation to take an action?????? ?????? ????? ?? ?? ????? ????? ??? ??????? ??????? ??? ??? ??An injury or loss suffered by the victim????? ?? ????? ?????? ??????Attempts to Estimate the Staggering Losses from Fraud:??????? ?????? ??????? ??????? ???? ????????:The Association of Certified Fraud Examiners estimates total yearly global fraud losses to be about $2.9 trillion a year.????? ????? ???????? ????????? ??????? ???????? ????? ????? ???????? ??????? ??????? ?????? 2.9 ??????? ????? ??????75 to 90 percent of all computer crimes are perpetrated by insiders.75% ??? 90% ?? ????? ??????? ?? ???????? ?? ??? ???????? ???? ???????? ?????Fraud perpetrators are also referred to as white-collar criminals.????? ??? ?????? ?????? ???????? ???? ????????? ??? ??????? ???????Statement on Auditing Standards (SAS) No. 99:????? ?????? ??????? ??? 99Fraud takes two forms???????? ???? ?????:Misappropriation of assets and?????? ??????Fraudulent financial reporting???????? ??????? ??????????Misappropriation of Assets?????? ??????Misappropriation of assets is often referred to as employee fraud.?????? ?????? ?????? ?? ????? ???? ??? ??? ?????? ????????A typical employee fraud has a number of important elements or characteristics:?????? ???????? ?????? ???? ??? ?? ??????? ???????? ???????The fraud perpetrator must gain the trust or confidence of the person or company being defrauded.??? ????? ???????? ?? ???? ??? ????? ?? ?????? ???? ????? ????Instead of a weapon or physical force to commit a crime, fraud perpetrators use trickery, cunning, or false or misleading information to obtain money or assets.???? ?? ?????? ?? ????? ??????? ??????? ???????? ????? ???????? ?????? ?????? ?????????? ???????? ?? ??????? ?? ??????? ?????? ??? ????? ?? ??????They hide their tracks by falsifying records or other information.?? ?????? ?????? ?????? ?? ???? ????? ??????? ?????????? ??????Few frauds are terminated voluntarily. Instead, the fraud perpetrator continues due to “need or greed.”??? ????? ???? ?? ?????? ???????? ?????. ??? ???? ??? ???????? ????? ?? ??????? ???? ?????? ?? ?????Often, perpetrators begin to depend on the “extra” income and get to a point where they cannot afford to stop.?? ???? ?? ???????? ????????? ?????? ?? ???????? ??? ????? "???????" ??????? ??? ???? ???? ?? ???????? ??????Other times they move to a higher life style that requires a greater amount of money.??? ????? ???? ??????? ??? ????? ???? ?? ?????? ????? ????? ???? ???? ?? ?????It’s at this point where they get braver, or should we say more relaxed, where the perpetrator gets greedy and starts stealing larger amounts of money; this is where they normally get caught.??? ??????? ???? ?????? ????? ???? ????? ?? ??? ?? ???? ???? ???? ??? ???? ????????? ?????? ??????? ????? ???? ?? ??????? ???? ??? ??? ????? ????Fraud perpetrators spend their ill-gotten gains, usually on an extravagant lifestyle. Rarely do they save or invest the money they take. Some of these high cost luxurious items include big homes, fancy cars, gambling, or just a big spender type person.????????? ?????? ??????? ??? ???????? ???? ??? ????? ???? ?????. ?????? ?? ?????? ???????? ?? ?????????. ??? ??? ??????? ??????? ???????? ???? ??????? ??????? ????????? ??????? ??? ?????? ?? ???? ?????? ????? ?????.Many perpetrators that become greedy not only start taking greater amounts of money, but also take the money more often.?????? ?? ????????? ????? ?????? ?????? ?? ??????? ????? ???? ????? ???? ?????? ??? ???? ????? ????As previously mentioned perpetrators at some point start getting braver and grow careless or overconfident. This is the point where they can also make a mistake and get caught.??? ???? ??????? ??? ???? ?????? ???? ????????? ???? ????? ??? ??????? ?? ?????? ???? ?????. ??? ??? ?????? ??? ???? ?? ??????? ??????? ?????? ?????The fraud perpetrator cannot get away with stealing cash or property forever. At some point, although it may take some time, they are going to get caught.?? ?????? ????????? ?????? ?? ?????? ??????? ????? ?????????? ??? ?????. ??? ???? ??????? ?????? ????? ??? ????? ?? ??? ?? ?????? ?????The most significant contributing factors in most employee frauds are the absence of internal controls or failure to enforce existing internal controls.??????? ???????? ?????? ????? ?? ???? ?????? ?????? ?????? ?? ???? ??????? ???????? ?? ????? ?? ????? ??????? ???????? ???????.After all, if a person that is already dishonest in his or her nature finds out the management is not concerned about internal controls, then this makes it very easy for him or her to become a fraud perpetrator and start stealing cash or property.??? ?? ???? ??? ??? ????? ???? ?? ??? ???? ?????? ??????? ????? ?? ??????? ???? ???? ???? ??????? ????????? ??? ??? ???? ?? ????? ??? ??????? ?? ?? ??? ????? ??????? ?????? ?? ???? ?????? ?? ?????????Fraudulent Financial Reporting???????? ??????? ??????????The Treadway Commission defined fraudulent financial reporting as intentional or reckless conduct, whether by act or omission, that results in materially misleading financial statements.???? ???? ?????? ???????? ??????? ?????????? ????? ???? ????? ?? ??????? ???? ??? ?????? ?? ???????? ?? ????? ???? ??? ????? ????? ?????? ??????The Treadway Commission studied 450 lawsuits against auditors and found undetected fraud to be a factor in half of them.???? ???? ??????? 450 ???? ?????? ?? ????? ???????? ????? ?? ???????? ??? ????? ?? ???? ?? ??? ??? ???????Some prime examples are Enron, WorldCom, Tyco, Adelphia, HealthSouth, Global Crossing, and Xerox.??? ??????? ???????? ?? ?????? ????? ???? ?????? ??????? ????? ?????? ???????? ???????Executives cook the books, as they say, by fictitiously inflating revenues, recognizing revenues before they are earned, closing the books early (delaying current period expenses to a later period), overstating inventories or fixed assets, and concealing losses and liabilities.???????? ?????????? ?????? ?????? ??? ??????? ?? ???? ????? ???? ?????????? ?? ????? ????????? ??? ?? ??? ????????? ?????? ????? ?? ??? ???? (????? ????? ?????? ??????? ??? ???? ?????)? ???????? ??????? ?? ?????? ???????? ?????? ??????? ???????????The Treadway Commission recommended four actions to reduce the possibility of fraudulent financial reporting:???? ???? ??????? ????? ??????? ???? ?? ??????? ????? ???????? ??????? ??????????Establish an organizational environment that contributes to the integrity of the financial reporting process.????? ???? ??????? ????? ?? ????? ????? ????? ???????? ???????Identify and understand the factors that lead to fraudulent financial reporting.????? ???? ??????? ???? ???? ??? ????? ???????? ??????? ??????????Assess the risk of fraudulent financial reporting within the company.????? ????? ????? ???????? ??????? ?????????? ???? ??????Design and implement internal controls to provide reasonable assurance that fraudulent financial reporting is prevented.????? ?????? ??????? ???????? ?????? ?????? ?????? ??? ???????? ??????? ?????????? ??? ?????A study by the Association of Certified Fraud Examiners found that misappropriation of assets by employees is more than 17 times more likely than fraudulent financial reporting.???? ????? ?????? ????? ???????? ????????? ??????? ???????? ?? ?????? ?????? ?? ??? ???????? ?? ???? ?? 17 ??? ?? ???????? ??????? ??????????SAS No. 99: The Auditor’s Responsibility to Detect Fraud????? ?????? ??????? ??? 99: ??????? ???? ???????? ???? ????????SAS No. 99 requires auditors to:????? ?????? ??????? ??? 99 ????? ?? ???? ????????:Understand fraud.??? ????????Discuss the risks of material fraudulent misstatements.?????? ????? ??????? ???????? ??????????Obtain information.?????? ??? ?????????Identify, assess, and respond to risks.????? ?????? ?????????? ???????Evaluate the results of their audit tests.????? ????? ???????? ?????? ????????Document and communicate findings.????? ?????? ???????Incorporate a technology focus.????? ??????? ??????????Learning Objective Three??? ?????? ??????Discuss who perpetrates fraud and why it occurs, including the pressures, opportunities, and rationalizations that are present in most frauds.?????? ?? ????? ???????? ????? ????? ??? ?? ??? ?????? ?????? ?????????? ???? ???? ?????? ?? ???? ?????? ????????Who Perpetrates Fraud and Why It Occur ?? ????? ???????? ?????? ????Perpetrators of computer fraud tend to be younger and possess more computer knowledge, experience, and skills.????????? ?? ???? ????????? ???? ???? ?? ?????? ???? ???? ?????? ?????? ?? ??????? ??????? ??????? ???????Some hackers and computer fraud perpetrators are more motivated by curiosity, a quest for knowledge, the desire to learn how things work, and the challenge of “beating the system.”???? ????????? ?? ???? ??????? ?????? ?????? ?????? ?? ??????? ??????? ?? ????? ????? ??? ??????? ?????? ??????Most have no previous criminal record.?????? ??? ???? ????? ??????Research shows that three conditions are necessary for fraud to occur: a pressure, an opportunity, and a rationalization. This is referred to as the fraud triangle and is shown as the middle triangle in Figure 5-1 on page 156.????? ?????? ?? ???? ????? ???? ?????? ???????? ????: ?????? ??????? ???????. ??? ????? ????? ???? ???? ???????? ???? ?? ???? ?? ?????? ?????? ?? ????? 5-1 ?? ?????? 156Pressures?????A pressure is a person’s incentive or motivation for committing the fraud. The three common types of pressures are financial, emotional, and life style ,which are summarized in Table 5-2 on page 156. Table 5-3 on page 157 provides the pressures that can lead to financial statement fraud.????? ?? ???? ????? ?? ?????? ??????? ????????. ????? ????? ????? ?? ???????? ??????? ?????????? ???? ??????? ????? ????? ?? ?????? 5-2 ?? ?????? 156. ?????? 5-3 ?? ?????? 157 ???? ?????? ???? ???? ?? ???? ??? ????? ???????? ???????Opportunities?????As shown in the opportunity triangle in Figure 5-1 on page 156,opportunity is the condition or situation that allows a person or organization to do three things:??? ?? ???? ?? ???? ?????? ?? ????? 5-1 ?? ???? 156? ?????? ?? ?????? ?? ????? ???? ???? ????? ?? ????? ?????? ????? ????Commit the fraud?????? ????????Most fraudulent financial reporting consists of the overstatement of assets or revenues or the understatement of liabilities, or the failure to disclose information.????? ???? ???????? ??????? ?????????? ?? ???????? ?? ??????? ?? ??????? ?? ????? ?? ??????????? ?? ??? ????? ?? ?????????Conceal the fraud????? ????????A common and effective way to hide a theft is to charge the stolen item to an expense account. For example, charge supplies to an expense account when they are initially purchased; before they are used. This allows the perpetrator the opportunity to use some of the supplies for personal benefit at the expense of the company. These unused supplies should have been recorded as an asset called Supplies until they are used.????? ????? ?????? ?????? ?????? ?????? ??? ??? ??????? ??? ???? ???????. ??? ???? ??????? ??? ????????? ??? ???? ??????? ????? ??? ?????? ?? ???????. ??? ?????????. ???? ???? ?????? ?????? ???????? ??? ?? ??? ????????? ?????? ????? ??? ???? ??????. ??? ?? ???? ??? ????????? ??? ????????? ???? ???? ??????? ??? ??? ?????????Another way to hide a decrease in assets is by lapping. In a lapping scheme, the perpetrator steals the cash or check that customer A mails in to pay its accounts receivable. Funds received at a later date from customer B are used to pay off customer A’s balance. Funds from customer C are used to pay off customer B, and so forth.????? ????? ???? ?????? ????? ?? ????????? ?? ?? ???? ????. ?? ???? ????? ?????? ???? ????? ??? ??? ?????? ? ???? ????? ?????? ??????? ????????. ?????? ??????? ???? ???? ?? ??? ???? ?? ?????? ? ?????? ???? ?????? ?. ??????? ??????? ?? ?????? ?? ????? ?????? ? ????? ??????In a kiting scheme, the perpetrator covers up a theft by creating cash through the transfer of money between banks. For example, suppose a fraud perpetrator opens checking accounts in three banks, called bank A, B, and C, and deposits $100 in each account. Then the perpetrator “creates” cash by depositing a $1,000 check from bank A into bank B and then withdraws the $1,000 from bank B. It takes two days for his check to clear bank A. Because there are insufficient funds in bank A to cover the $1,000 check, the perpetrator deposits a $1,000 check from bank C to bank A before his check to bank B clears bank A. Because bank C also has insufficient funds, $1,000 must be deposited to bank C before the check to bank A clears. The check to bank C is written from bank B, which also has insufficient funds. And the scheme continues. I have also seen situations where kiting also includes credit cards in with the use of checking accounts.?? ???? ????????? ???????? ?????? ????? ??? ?????? ?? ???? ????? ?????? ?? ???? ??? ??????? ??? ??????. ??? ???? ??????? ?????? ?? ???? ????? ???????? ???????? ??????? ?? 3 ????? ?????? ?? ? ???? ???????? ????? 100 ????? ?????? ?? ?? ????. ??? ???? ???? ?????? "??????" ????? ??? ????? ??? ????? 1000 $ ?? ????? ? ??? ????? ? ???? ??? ???? ???? ???1000 ????? ?????? ?? ????? ?. ?????? ????? ????? ????? ?? ????? ?. ???? ?? ???? ???? ??? ?? ????? ? ?????? ??? ???1000 ????? ??????? ???? ???????? ?????? ??? ????? 1000 ????? ?????? ?? ??? ?? ??? ??? ? ??? ?? ???? ??? ? ?????? ????? ?? ??? ?. ??? ????? ?? -?????- ?? ???? ??????? ??????? 1000 ????? ?????? ??? ?? ??? ??????? ?? ????? ?? ??? ?? ??? ????? ????? ?? ??? ??? ? ????. ????? ???? ?? ????? ?? ??? ? ???? ?? ????? ?? ???? ??????? ?????. ?????? ??? ??????. ??? ???? ???? ??????? ???? ???? ????????? ??????? ???? ??????? ???????? ?? ??????? ???????? ???????Convert the Theft or Misrepresentation to Personal Gain????? ?????? ?? ??????? ?????? ????? ?????In employee fraud, all fraud perpetrators go through the conversion phase unless they steal actual cash that can be spent or use the asset personally.?? ?????? ??????? ???? ?????? ???????? ????? ?????? ???????? ??? ??? ???? ???? ????? ????? ???? ???? ?? ??????? ?? ????????? ?? ?????? ?????Table 5-4 on page 159 lists some of the more frequently mentioned opportunities that permit employee and financial statement fraud.?????? 5-4 ?? ?????? 159 ???? ??? ?? ??? ?? ???? ?? ??????? ???? ????? ???? ???? ??????? ?????? ??????? ?????? ??????Opportunities for fraud often stem from internal control factors.??? ???????? ????? ?? ???? ?? ????? ??????? ????????A control feature many companies lack is a background check on all potential employees.????? ??????? ???? ????? ??? ?????? ?? ??????? ?? ??? ????? ??? ???? ???????? ?????????[This page is left blank intentional Rationalizations?????????Rationalization allows perpetrators to justify their illegal behavior.????????? ???? ????????? ????? ?????? ??? ????????A list of some of the rationalizations people use:????? ???? ???????? ???? ???????? ?????I am only “borrowing” the money (or asset) and will repay my “loan.”??? ??? ????? ????? (?? ??????) ?????? ?????? ????You would understand if you knew how badly I needed it.??? ????? ??? ???? ??? ????? ???? ???? (?????)What I did was not that serious.?? ????? ??? ???? ???????It was for a good cause (the Robin Hood syndrome, robbing from the rich to give to the poor).??? ??? ???? ???? ?? ??? (???????? ???? ???? ?????? ?? ???????? ?????? ???????)I occupy a very important position of trust. I am above the rules.??? ???? ?????? ?????? ?????? ?? ?????. ??? ??? ????????Everyone else is doing it, so it is not that wrong.?????? ?????? ???? ??? ??? ????No one will ever know.?? ??? ????? ?????The company owes it to me, and I am taking no more than is rightfully mine.?????? ???? ?? ??? ???? ?? ??? ???? ?? ??? ?????Learning Objective Four??? ?????? ??????Define computer fraud and discuss the different computer fraud classifications.????? ???????? ?? ???? ??????? ??????? ????? ??????? ???????? ?? ???? ???????Computer FraudThe U.S. Department of Justice defines computer fraud as any illegal act for which knowledge of computer technology is essential for its perpetration, investigation, or prosecution. More specifically, computer fraud includes the following:???? ????? ????? ????????? ?????? ??????? ??? ??? ??? ?????? ??? ?? ??????? ?????????? ??????? ??? ????? ??????? ?? ???????? ?? ????????.????? ???? ??????? ???? ???????? ?? ???? ??????? ?? ???Unauthorized theft, use, access, modification, copying, and destruction of software or data?????? ?? ????????? ?? ??????? ?? ???????? ?? ?????? ?? ????? ??????? ?? ???????? ??? ??????? ?? ??????? ??Theft of money by altering computer records???? ????? ?? ???? ????? ????? ???????Theft of computer time???? ??? ???????Theft or destruction of computer hardware???? ?? ????? ????? ???????Use or the conspiracy to use computer resources to commit a felony??????? ?? ?????? ???????? ????? ??????? ??????? ?????Intent to illegally obtain information or tangible property through the use of computers??? ?????? ??? ??????? ?? ??????? ????? ?????? ??? ?????? ?? ???? ??????? ????? ???????The Association of the Certified Fraud Examiners provides the general definition of computer fraud:???? ???? ????? ???????? ???????? ??????? ????? ???????? ?? ???? ???????:Any defalcation or embezzlement accomplished by tampering with computer programs, data files, operations, equipment, or media and resulting in losses sustained by the organization whose computer system was manipulated.?? ?????? ?? ???????? ??? ?????? ???????? ?????? ???????? ?? ????? ???????? ?? ???????? ????????? ?? ????? ???????? ???? ???? ??? ????? ???? ???? ???????? ???? ???? ???? ??????? ???? ???????Another definition of computer crime:????? ??? ?????? ???????In a computer crime, the computer is involved—directly or indirectly—in committing the criminal act. Sabotage of computer facilities is classified as a direct computer crime and unauthorized access of stored data is an indirect computer crime because the presence of the computer created the environment for committing the crime.?? ????? ???????? ??????? ???? ???? ?????? ?? ??? ?????? ??????? ????? ?????? . ?? ????? ??????? ????????? ????? ??? ??? ????? ??????? ???????? ??????? ??? ??????? ?? ???????? ???????? ?????? ??? ?????? ??? ???? ??????? ??? ???? ??????? ???????The Rise in Computer Fraud???? ????? ???????? ?? ???? ???????Computer systems are particularly vulnerable to computer crimes for the following reasons:?? ????? ??????? ????? ???? ??? ?????? ??????? ??????? ???????:Billions of characters of data are stored in company databases. People who manage to break into these databases can steal, destroy, or alter massive amounts of data in very little time.??? ????? ??????? ?????? ?? ???????? ?? ????? ?????? ??????. ???? ????? ????? ?????? ?? ?????? ????? ???????? ??? ???? ?? ????? ?? ????? ????? ????? ?? ???????? ?? ??? ???? ???Organizations want employees, customers, and suppliers to have access to their system. The number and variety of these access points significantly increase the risks.??????? ???? ?? ???????? ????????? ????????? ?????? ??? ?????? ????? ???. ????? ????? ???? ?????? ??? ???? ??????? ???? ???? ???? Computer programs need to be changed or modified only once without permission for the system to operate improperly for as long as the system is in use.????? ????? ??????? ??? ??????? ???????? ??? ????? ??? ???? ??? ?????? ??? ?????? ???? ??? ???? ????? ??? ??????? ?? ?????????Modern systems utilize personal computers (PCs), which are inherently more vulnerable to security risks. It is difficult to control physical access to each networked PC. In addition, PCs and their data can be lost, stolen, or misplaced.????? ??????? ?????? ????? ????????? ???????? ????? ?? ???????? ???? ???? ??????? ???????. ??? ????? ??????? ??? ?????? ?????? ??? ?? ???? ????? ???? ???????. ???????? ??? ???? ????? ????????? ??????? ????????? ?????? ??? ???? ??????? ?? ??????? ?? ???? ??? ??????Computer systems face a number of unique challenges: reliability (e.g., accuracy, completeness), equipment failure, environmental dependency (e.g., power, damage from water or fire), vulnerability to electromagnetic interference and interruption, eavesdropping, and misrouting.?????? ????? ????????? ???? ?? ???????? ???????: ????????? (??? ???? ??????? ????? ?????????)? ???? ???????? ????????? ??????? (??? ???? ??????? ??????? ?????? ?? ????? ?? ?????)? ??????? ??????? ?????????????? ?????????? ???????? ?????? ???????The increase in computer fraud schemes is due to some of the following reasons:?? ??????? ?? ????? ???????? ?? ???? ??????? ???? ??????? ???????:Not everyone agrees on what constitutes computer fraud.?? ???? ?????? ??? ?? ????? ???????? ?? ???? ???????Many computer frauds go undetected.?????? ?? ????? ???????? ?? ???? ??????? ?? ??? ????????The FBI estimated that only one percent of all computer crime was detected; whereas others estimated it to be between 5 and 20 percent.??? ???? ????????? ???????? ??? ??? 1% ?? ???? ????? ??????? ?? ?????? ?? ??? ?????? ?? ?????? ?? ??? 5-20%A high percentage of uncovered frauds are not reported.?? ??? ??????? ?? ???? ????? ?? ????? ???????? ???? ??? ????????Many networks have a low level of security.?????? ?? ??????? ????? ????? ????? ?? ?????Many Internet pages give step-by-step instructions on how to perpetrate computer crimes and abuses.?????? ?? ????? ???????? ????? ??????? ???? ????? ?????? ?????? ????? ??????? ?? ????? ?????????Law enforcement is unable to keep up with the growing number of computer frauds.????? ????? ??????? (????? ?????) ????? ?? ?????? ????? ???????? ?? ????? ???????? ?? ???? ???????The total dollar value of losses is difficult to calculate.???? ???? ?????? ????????? ??????? ????????Computer Fraud Classifications??????? ???????? ?? ???? ???????As shown in Figure 5-2 on page 162, one way to categorize computer fraud is to use the data processing model: input, processor, computer instructions, stored data, and output.??? ?? ???? ?? ????? 5-2 ?? ?????? 162? ????? ???? ?????? ???????? ?? ???? ??????? ???????? ????? ?????? ????????: ????????? ????????? ??????? ??????? ????????? ???????? ????????Input ??????? The simplest and most common way to commit fraud is to alter computer input. It requires little, if any, computer skills. Instead, perpetrators need only understand how the system operates so they can cover their tracks.???? ????? ????? ????? ??????? ?????? ?????? ?? ????? ?????? ???????. ???? ????? ?????? ?? ????? ?? ?????? ???????. ????? ?? ???? ????? ?????? -???- ??? ??? ??? ???? ?????? ??? ??????? ?? ????? ?????? To commit payroll fraud, perpetrators can enter data to increase their salary, create a fictitious employee, or retain a terminated employee on the records.??????? ?????? ?????? ???????? ???? ?????? ????? ?????? ?????? ???????? ?? ????? ???? ????? ?? ???????? ?? ??????? ????? ????? ???? ?? ?????? Example of input fraud: a New York bank employee changes the company deposit slips to forged deposit slips. For three days he deposited bank deposits in his personal account. Then he disappeared and was not caught as he used an alias name.???? ??? ???????? ?????????: ???? ??? ??????? ???? ????? ??????? ?????? ??? ????? ????? ?????. ???? ????? ???? ???? ??????? ???????? ?? ????? ??????. ?? ????? ??? ????? ???? ????? ??????? ??? ??????There are more examples on page 162.???? ?????? ?? ??????? ??? ???? 162Processor???????Computer fraud can be committed through unauthorized system use, including the theft of computer time and services.????? ???????? ?? ???? ??????? ???? ?? ??? ?? ???? ????????? ??? ??????? ?? ?????? ???? ???? ???? ??? ?????? ???????Example of processor fraud: employees of an insurance company were running an illegal gambling Website. These employees hid the computers under the floor.???? ??? ???????? ?? ???? ????????: ????? ???? ????? ?????? ?????? ??? ?????? ????????. ????? ???????? ????? ????? ??????? ??? ?????There are more examples on page 163.???? ?????? ?? ??????? ??? ???? 163Computer Instructions??????? ???????Computer fraud can be accomplished by tampering with the software that processes company data.???????? ?? ???? ??????? ???? ?????? ?? ???? ??????? ????????? ???? ?????? ?????? ??????Data????????The greatest exposure in data fraud comes from employees with access to the data.?????? ???? ??????? ?? ?????? ???????? ???? ?? ???????? ???? ?????? ?????? ????????The most frequent type of data fraud is the illegal use of company data, typically by copying it, using it, or searching it without permission.????? ?????? ????? ?? ?????? ???????? ?? ????????? ??? ??????? ??????? ??????? ????? ?? ???? ?????? ?????????? ?? ????? ???? ??? ?????For example, an employee using a small flash drive or an iPod can steal large amounts of data and remove it without being detected.??? ???? ??????? ???? ?????? ????? ?????? (????) ?? ??-??? ????? ???? ???? ????? ?? ???????? ???????? ??? ?? ??? ????The following are some recent examples of stolen data:???? ???? ??? ??????? ??????? ??? ???????? ????????:The office manager of a Wall Street law firm found information about prospective mergers and acquisitions in the firm’s Word files. He sold the information to friends and relatives, who made several million dollars trading the securities illegally.???? ???? ?????? ?? ??? ????? ??? ??????? ??? ?????? ???????? ?????????? ???????? ?? ????? ???? ??????. ??? ??? ????????? ??? ???????? ????????? ????? ????? ??? ?????? ?? ????????? ???????? ??????? ??????? ???? ??? ??????A 22-year-old Kazakhstan man broke into Bloomberg’s network and stole account information, including that of Michael Bloomberg, the mayor of New York and the founder of the financial news company. He demanded $200,000 in exchange for not using or selling the information. He was arrested in London when accepting the ransom.??? ?? ????????? ???? ?? ????? 22 ???? ????? ???? ??????? ???? ??????? ??????? ??? ?? ??? ????? ??????? ???? ????? ??????? ????? ???? ??????? ???????. ????? ?? 200 ??? ????? ?????? ?? ????? ??? ??????? ?? ??? ?????????. ???? ?? ????? ?? ???? ??? ????? ??????A software engineer tried to steal Intel’s plans for a new microprocessor. Because he could view but not copy or print the manufacturing plans, he photographed them screen by screen late at night in his office. One of Intel’s controls was to notify security when the plans were viewed after hours. He was caught photographing the plans.???? ????? ??????? ???? ??? ???? ????????? ???????. ???? ???? ??? ???? ?? ???? ??? ?????? ??? ???????? ???? ??? ???????? ???? ??? ???? ?? ??? ????? ?? ????? ?? ?????. ??? ????? ????????? ?? ???? ???? ?????? ????? ??? ????? ?? ??? ?????. ?? ????? ???? ??? ???? ????? Cyber-criminals used sophisticated hacking and identity theft techniques to hack into seven major online brokerage firm accounts. They sold the securities in those accounts and used the cash to pump up the price of 15 low-priced, thinly traded public companies they already owned. They then dumped the 15 stocks in their personal accounts for huge gains. E-trade lost $18 million and Ameritrade $4 million in similar pump-and-dump schemes.????? ?????? ???????? ?????? ????? ????? ???? ?????? ??????? ???? ?????? ????? ????? ?????? ??? ????????. ????? ??????? ??????? ?? ??? ???????? ????????? ????? ?? ?? ?? ??? 15 ???? ???? ?????? ?????? ??????? ???? ???? ?? ???????? ??????. ???? ??? ???? ?????? ???15 ?? ???????? ??????? ?????? ????? ????. ???? ???? ??-???? 18 ????? ????? ?????? ????? ???? ????-???? 4 ?????? ????? ?????? The U.S. Department of Veterans Affairs was sued because an employee laptop that contained the records of 26.5 million veterans was stolen, exposing them all to identity theft. Later, another laptop with the records of 38,000 people disappeared from a subcontractor’s office.???? ???? ?????? ??? ????? ???? ????????? ??????? ??? ???? ????? ????? ????? ???????? ????? ??? ????? 26.5 ????? ?? ????????? ??????? ?? ???? ??? ?????? ????? ????? ??????. ?? ??? ????? ???? ????? ????? ??? ?? ????? 38000 ???? ????? ?? ???? ????? ????Data can also be changed, damaged, destroyed, or defaced.???????? ?????? ???? ?? ????? ?? ????? ?? ???? ?? ?????Data also can be lost due to negligence or carelessness.???????? ????? ???? ?? ???? ???? ??????? ?? ??? ?????????Deleting files does not erase them. Even reformatting a hard drive often does not erase files or wipe the drive clean.??? ??????? ?? ??????? ??? ????? ????? ????? ????? ?????? ?? ???? ??????? ?? ???? ????? ?????Output???????? Computer output, displayed on monitors or printed on paper, can be stolen or misused.?????? ??????? ???? ????? ??? ???? ?? ???? ??? ??? ???? ?? ???? ?? ????? ????????? Fraud perpetrators can use computers and output devices to forge authentic-looking outputs. For example, a company laser-printer could be used to prepare paychecks.???? ????????? ?? ???????? ??????? ?? ????? ??????? ?????? ??????? ????? ??????. ??? ???? ??????? ????? ???? ??? ???? ???? ????????? ?????? ???????Learning Objective Five??? ?????? ??????Explain how to prevent and detect computer fraud and abuse.??? ????? ??? ???? ???????? ???????? ?? ???? ???????Preventing and Detecting Computer Fraud and Abuse??? ???? ???????? ?????? ??????? ???????Table 5-5 on pages 164 and 165 provides a summary of ways to prevent and detect computer fraud.???? ?????? 5-5 ??? ??????? 164 ? 165 ????? ?? ????? ???? ???? ???????? ?? ???? ???????Make fraud less likely to occur.??? ???????? ??? ???????? ??????Increase the difficulty of committing fraud.????? ????? ?????? ????? ????????Improve detection methods.????? ??? ??? ????????Reduce fraud losses.????? ??????? ??????? ?? ????????EMPLOYEE FRAUD SCHEMES??? ?????? ??????Cash?????Cash is the focal point of most accounting entries. Cash, both on deposit in banks and petty cash, can be misappropriated through many different schemes. These schemes can be either on-book or off-book, depending on where they occur. Generally, cash schemes are smaller than other internal fraud schemes because companies have a tendency to have comprehensive internal controls over cash and those internal controls are adhered to. Cash fraud schemes follow general basic patterns, including skimming, voids/under-rings, swapping checks for cash, alteration of cash receipts tapes, fictitious refunds and discounts, journal entries and kiting.????? ?? ?????? ???????? ????? ???????? ?????????. ?????? ???? ??? ??????? ?? ?????? ?????????? ???????? ???? ??????? ?? ???? ?????? ?? ????? ????????. ????? ???? ???????? ?? ???? ?? ?????? ?? ???? ??????? ??????? ??? ???? ??????. ?????? ?????? ????? ?? ???? ?? ?????? ???????? ???????? ?????? ??? ??????? ????? ????? ??? ????? ?????? ????? ??? ????? ?????? ???? ??????? ????????. ?? ?????? ???????? ??????? ???? ??????? ???????? ??????? ??? ?? ??? ??????? ??????? ???????? ???? / ??? ??????? ?????? ??????? ????? ????? ????????? ??????? ???????? ???????? ????????? ???????? ???????? ?????? ??????? ?????????? ???????Skimming??????? ??????Skimming involves removing cash from the entity before the cash is recorded in the accounting system. This is an off-book scheme; receipt of the cash is never reported to the entity. A related type of scheme is to ring up a sale for less than the actual sale amount. (The difference between the actual sale and the amount on the cash register tape can then be diverted.) This is of particular concern in retail operations (for example, fast food restaurants) where much of the daily sales are in cash, and not by check or credit card.??????? ???? ????? ????? ????? ?? ??????? ??? ?????? ?? ?????? ????????. ??? ?????? ??? ?? ??????? ?????? ????? ?? ????? ???????. ????? ??? ?? ??? ?????? ?????? ??? ??? ???? ?? ???? ????? ??????. (????? ??? ??? ????? ?????? ??????? ??? ???? ??? ????? ????? ???? ??????) ???? ???? ????? ???? ???? ?? ?????? ????? ???????? (??? ???? ??????? ????? ??????? ???????) ??? ?????? ?? ???????? ??????? ?? ????? ???? ???????? ?? ????? ????????EXAMPLE????According to an investigation, fare revenues on the Chicago Transit Authority’s (CTA) rail system allegedly were misappropriated by agency employees. The statistics indicate that the thefts are not confined to the one station that originally was suspected and that the fare-skimming by transit workers might have been reduced by news of the investigation. In the four days after reports of skimming surfaced, about $792,000 was turned in by station agents system wide. In a similar Monday through Friday period only $723,000 was turned in by station agents.???? ???????? ??????? ?????? ?? ???? ??? ?????? ??? ???? ????? ???????? ?? ??????? ????? ?? ??? ????? ???????. ????? ????????? ??? ?? ??????? ?? ????? ??? ???? ????? ?? ????? ??? ??? ????? ??? ?????? ?????? ?? ??? ???? ????? ?? ?? ????? ???? ????? ?? ???????. ?? ????? ???? ??? ???? ?????? ??????? ??????? ?? ????? ????? 792 ??? ????? ?????? ?? ??? ???? ???? ?????? ??? ???? ????. ?? ??? ??????? ??? ??? ?????? ???? ?????? ????? ??? 723 ??? ????? ?????? ??? ?? ????? ????CTA officials estimated that a planned installation of a $38 million automated fare-collection system would eliminate $6.5 million annually in revenue “shrinkage,” mostly from employee theft. At least 10 workers have been investigated, including nine ticket agents and one supervisor or clerk. Early reports indicated that agents pocketed money after recording “transfer” or “monthly passes” as cash-paying customers passed through turnstiles.???? ??????? ?? ???? ??? ?????? ?? ????? ???? ??? ?????? ????? ????? ????? 38 ????? ????? ?????? ????? ??? 65 ????? ????? ?????? ????? ?? "??????" ???????? ? ?????? ?? ???? ??????. ?? ??????? ???? ?? 10 ???? ??? ?????? ????? ???? ????? ????? ????? ???? ?? ????. ?????? ???????? ??????? ?? ??????? ????? ?? ????? ??? "???" ????? ?? "?????? ?????? ???????" ?? ???? ??????? ????? ?????? ????? ?? ???? ????????Voids/Under-RingsThere are three basic voids/under-ring schemes. The first is to record a sale/cash receipt and then void the same sale, thereby removing the cash from the register. The second, and more common variation, is to purchase merchandise at unauthorized discounts. The third scheme, which is a variation of the unauthorized discount, is to sell merchandise to a friend or co-conspirator using the employee’s discount. The co-conspirator then returns the merchandise for a full refund, disregarding the original discount.???? ????? Voids/Under-Rings. ????? ?? ?????? ????? ????? / ????? ??? ?? ????? ??? ????? ?????? ???????? ????? ????? ?? ?????. ???????? ??????? ??????? ?????? ?? ????? ??????? ???????? ??? ????? ???. ?????? ??????? ???? ?? ??? ????????? ??? ?????? ???? ??? ??? ??????? ??? ???? ?? ????? ???????? ??????? ??????. ????? ??????? ??? ??? ?????? ??????? ????? ???? ??????? ???? ?????????EXAMPLE????Roberta Fellerman, a former Ball State University employee, was indicted on federal charges of stealing about $105,000 from the school’s bookstore operations. Fellerman was charged with stealing the money over a thirty-three month period.?????? ????????? ??? ????? ????? ?? ????? ????? ??? ? ?? ????? ??????? ??? ???? ??????? (???????) ????? ????? 105?000 ????? ?????? ?? ?????? ??? ????? ?? ???????. ?????? ???????? ????? ????? ??? ??? 30 ????? The thefts allegedly were from proceeds of the sales of books to students who took Ball State courses through an “off-campus” program at many cities around Indiana. Fellerman was in charge of the sale of the books from the book store.??? ??? ?? ??????? ???? ?? ?????? ?????? ????? ?????? ????? ????? ????? ????? ??? ?? ???? ?????? "???? ????? ???????" ?? ?????? ?? ????? ?? ????? ????? ????? ???????. ???????? ???? ???????? ?? ?????? ????? ?? ???? ?????Fellerman was accused of altering records and taking currency from a cash drawer. She was also charged with income tax violations for failing to report the stolen money on her federal tax returns.????? ????? ?????? ??????? ???? ????? ?? ??? ??????. ??? ??? ??????? ??? ???? ????????? ?????? ????? ???? ??????? ?? ??????? ???????? ???? ??? ????? ??????? ????????? (?????????)Swapping Checks for Cash?????? ??????? ???????? ???????One common method where an employee can misappropriate cash is to exchange his own check for cash in the cash register or cash drawer. Periodically, a new check is written to replace the old check. This process can be continued so that on any given day, there is a current check for the cash removed. This is a form of unauthorized “borrowing” from the company. Obviously, if it is the company policy that cash drawers or registers are reconciled at the conclusion of each day and turned over to a custodian, then this fraud scheme is less likely to be committed. However, if personnel are allowed to keep their own cash drawers and only remit the day’s receipts, then this method of unauthorized borrowing will be more common.??? ????? ??????? ???? ???? ???? ?????? ?????? ?????? ?? ????? ????? ????? ????? ?? ??? ????? ?????? ?? ?? ??? ??????. ???? ???? ??? ????? ??? ???? ???? ??? ????? ??????. ???? ????????? ?? ??? ??????? ??? ??? ?? ?? ??? ?? ??????? ???? ??? ???? ?? ???? ?? ????? ?? ?????.EXAMPLELisa Smith, a Garfield High School fiscal clerk at a central treasurer function allegedly “borrowed” $2,400 by placing 23 personal checks in deposits which were made from various student activities at decentralized locations. Ms. Smith placed a personal check in each deposit as a method of keeping track of the amount of money which had been “borrowed.” The transactions were inappropriately delayed for up to 5 months.???? ????? ??? ????? ????? ?? ????? ?????? ??????? ?? ??????? ??????? ???????? ??????? ???? "???????" 2400 ????? ?????? ?? ???? ??? 23 ?? ??????? ??????? ?? ??????? ???? ???? ?? ??????? ???????? ???????? ?? ??????? ?????????. ?????? ???? ???? ??? ???? ?? ?? ??????? ?????? ?? ????? ???? ?????? ??????? ???? ?? "?????????". ??? ????? ????????? ???? ??? ????? ???? ??? ??? 5 ????Auditors detected the delayed transactions during an unannounced cash count. On the day of the count, the fund custodian had only a few hundred dollars in his bank account (confirmed by telephone upon receipts of custodian’s authorization). When all 23 personal checks were deposited in the district’s account, several were returned as NSF. After payday, all NSF checks subsequently cleared the bank. The custodian’s employment with the district was terminated.???????? ??????? ????????? ????????? ????? ????? ?? ??? ?????? ????????? ???????? ??? ??? ????? ??? ????????? ??????? ??? ???? ????? ?? ????????? ?? ????? ?????? (??????? ?? ?? ???? ?????? ??? ??? ??? ?? ???????). ???? ?? ????? ???? ??????? ???23 ??????? ?? ???? ?????????? ?????? ???? ?? ??????? ??? ???? ??-??-??. ??? ??? ??? ???????? ???? ????? ??-??-?? ??? ??? ?? ????? ???????? ?? ?????. ?? ????? ????? ????? ??? ????????? ??????? ???????? ??? ????????.Alteration of Cash Receipts Documentation????? ????????? ??????? ????????A lack of segregation of duties can create an opportunity for an employee to misappropriate company funds. For example, if the same person is responsible for both collecting and depositing the cash receipts, then this person has the opportunity to remove funds from the business for his own personal use and conceal such theft through the deposits. This is often the case in smaller organizations where there are few personnel to divide the daily operations. A variation of this scheme is to mutilate or destroy the cash receipts documentation so that any attempt to reconcile the cash deposited with the cash receipts is thwarted.??? ????? ??? ???????? ???? ?? ???? ???? ?????? ??????? ????? ??????. ??? ???? ??????? ??? ??? ??? ????? ?? ??????? ?? ?? ?? ??? ?????? ????????? ???????? ???? ????? ???? ?????? ?????? ??????? ?? ????? ????????? ?????? ????? ?????? ??? ?????? ?? ???? ???????. ??? ?? ????? ????? ?? ??????? ??????? ??? ???? ??? ???? ?? ???????? ?????? ???????? ??????? ?? ???? ?? ???????. ????? ?????? ?? ??? ?????? ??? ????? ?? ????? ????? ????????? ??????? ???? ??? ????? ?? ?????? ??????? ??? ?????? ??????? ??? ????????? ???????EXAMPLE????An elected county treasurer allegedly stole $62,400 over a three year period from property tax receipts. Every other day, after cash receipt transactions were batched and posted to the subsidiary accounting records, the treasurer altered the total cash receipts and the actual deposit. Therefore, the control account and the deposit were equal but that total did not match the total postings to the individual tax payers’ accounts. In each of the three years, the difference between the control account receivable and the summation of the individuals in the subsidiary accounts was written off. These were unsupported accounting adjustments.???? ????? ????? ?? ?????? ???? ??? ??? 62400 ????? ?????? ??? ??? 3 ????? ?? ?????? ????? ?????????. ?? ???? ??? ?? ??? ?????? ??????? ???????? ???????? ??? ??????? ?????????? ???????? ???? ???? ??????? ?????? ????? ???????? ??????? ????? ??????? ???????. ????? ???? ???? ????????? ???????? ???????? ??? ??????? ?? ????? ????? ?? ?? ?????? ??????? ????? ??????? ???????. ?? ?? ??? ?? ??????? ?????? ? ??? ????? ??? ???? ????? ?????? ??????? ?? ???????? ??????? ?? ?? ????. ??? ????????? ?????????? ???? ??? ??????.Evidence was obtained by reconstructing the three years’ cash receipts and matching the differences between the total cash receipts, control account, and the individual (subsidiary) accounts with the unsupported accounting adjustments.?? ?????? ??? ?????? ?? ???? ????? ????? ???????? ??????? ??? ??? ??????? ?????? ??????? ???????? ??? ????? ???????? ??????? ???? ???????? ????????? ??????? (???????) ???? ????????? ?????????? ??? ????????Fictitious Refunds and Discounts??????? ????????? ? ????????? ???????Fictitious refunds occur when an employee enters a transaction as if a refund were given; however, no merchandise is returned, or no discount is approved which substantiates the refund or discount. The employee misappropriates funds equal to the fictitious refund or discount. This scheme is most prevalent in the retail/merchandise industry; however, it can occur in any operation in which a refund or discount is given.???? ??? ????? ???? ?????? ?????? ?????? ??? ?? ?? ???? ????? ??????? ?????? ????? ??? ???? ?? ??? ????? ?? ????? ??? ???? ???? ?? ??????? ?????? ???? ?????? ??? ??????? ???? ?? ???????EXAMPLE????Dora Malfrici, a former New York University student financial aid official, was charged along with her husband Salvatore with stealing $4.1 million. This was allegedly done by falsifying more than a thousand tuition refund checks. The loss was described as one of the largest embezzlements ever uncovered at a U.S. university. The money was allegedly taken from the Tuition Assistance Program, operated by the New York State Higher Education Services Corporation to provide expenses money to needy students. However, NYU officials assert that the funds came from a University account, not from State money.???? ????????? ?????? ????? ?? ????????? ??????? ???????? ?? ????? ???????? ????? ?? ????? ????? 4.1 ????? ????? ??????. ????? ?? ??? ?? ?? ???? ????? ????? ???? ?? ??? ????? ?? ??????? ????????. ??? ???? ??????? ?????? ?? ???? ?????????? ???? ?? ????? ?? ????? ???????? ?????????. ????? ?? ????? ?? ??? ?? ?????? ????????? ????????? ???? ?????? ????? ????? ??????? ?? ????? ??????? ?????? ????? ????? ?????? ????????? Malfrici’s job was to assure that students entitled to funds from the Corporation received their checks. According to the U.S. Attorney, she arranged for checks to be made out to hundreds of legitimate NYU students who were not entitled to receive any funds. These students were kept unaware of this because the checks were deposited into bank accounts in Manhattan and New Jersey that allegedly were controlled by the Malfricis. These checks were made over to Elizabeth Pappa before being deposited into accounts in that name. Some other checks were made payable directly to Pappa. The FBI was unable to locate Elizabeth Pappa and believes that such a person never existed. Reportedly, the Malfricis spent $785,000 of the funds in question on expensive jewelry and $85,000 of the money on Florida real estate.???? ????? ???????? ?? ???? ?? ????? ?????? ????????? ??????? ??????? ?? ???????. ?????? ?????? ????? ???????? ??? ???????? ???? ??????? ????? ????? ?? ???? ????? ????? ??????? ???? ?? ??? ??? ?????? ??? ?? ??????? ?????. ?????? ???? ??? ?????? ???? ????? ??? ??????? ???? ???? ?? ?????? ????? ?? ?????? ????????? ???? ?? ????? ??? ?? ??? ????????. ????? ??? ??????? ??? ???????? ???? ??? ?? ???? ?? ?????? ?? ???? ?????. ??? ??????? ?????? ????? ????? ????? ??????. ?? ???? ????????? ???????? ??? ?????? ?? ????? ???? ???????? ????? ?????? ???? ???? ??? ???? ?????. ????? ???????? ?? ???????? ????? ???? 785 ??? ????? ?????? ?? ??????? ??? ??????? ????? ?85 ??? ????? ?????? ??? ???? ?? ????? ???????. Kiting????????? ??????? ?? ???????Kiting is the process whereby cash is recorded in more than one bank account, but in reality, the cash is either nonexistent or is in transit. Kiting schemes can be perpetrated using one bank and more than one account or between several banks and several different accounts.????? ????????? ??????? ?? ??????? ?? ????? ?? ????? ??? ?? ?????? ????? ?????? ?????? ?? ???? ?? ???? ????? ??? ?? ??????? ?????? ?????? ??? ??? ??? ????? ?? ??? ?? ???? ??????? (???)Although banks generally have a daily repot that indicates potential kiting schemes, experience has shown that they are somewhat hesitant to report the scheme until the balance in their customers’ accounts is zero.??? ????? ?? ?? ?????? –???? ???- ????? ?????? ???? ??? ??????? ?????? ?????? ??????? ????? ?? ?????? ??????? ??????? ???? ??????? ?? ??????? ?? ??? ????????? ??? ???? ?????? ?? ???? ?????? ?????. There is one important element to check kiting schemes: all kiting schemes require banks to pay on unfunded deposits. This is not to say that all payments on unfunded deposits are kiting schemes, but rather, that all kiting schemes require payments be made on unfunded deposits. In other words, if a bank allows its customers to withdraw funds on deposits that the bank has not yet collected the cash, then kiting schemes are possible. In today’s environment where customers use wire transfers, kiting schemes can be perpetrated very quickly and in very large numbers.???? ???? ???? ??? ?????? ?? ??????? ????????? ???????: ????? ???? ??????? ????????? ??????? ?? ??????? ?? ?????? ??? ????? ??? ??????. ???? ?? ?????? ????? ??? ?? ?????? ????? ??? ??????? ?? ??????? ???????? ?????? ???? ???? ??? ??? ?? ?????? ?????? ????? ????? ????? ????? ??? ?????.EXAMPLE????Ronald W.P. Sylvia, 59, and his son-in-law, Philip L. Grandone, 33, both of Dartmouth, admitted to participating in a check-kiting scheme that bilked the Bank of Boston out of $907,000. Grandone, owner of two pharmacies in the New Bedford area, had cash-flow problems when Sylvia, operator of two auto sales and leasing businesses, offered to write a check to cover some of his son-in-law’s operating expenses. Grandone repaid that $50,000 loan within a few days, but borrowed again and again “in every-increasing amounts” to bring fresh infusions of cash into his faltering pharmacy businesses. An exchange of checks between Grandone and Sylvia eventually occurred literally daily until Sylvia’s bank caught on to the float scheme and froze Sylvia’s account.?????? ??????? 59 ?????? ???? ?????? ????? ???????? 33 ?????? ?????? ?? ????????? ?????? ????????? ?? ?????? ?????? ????? ???? ????? ???? ??? ????? ??? ????? 907 ???? ????? ??????.???????? ??? ??? ????????? ?? ????? ??????????? ??? ???? ????? ?? ???????? ???? ??????? ???? ???????? ?????? ?????? ??? ?? ???? ?????? ??? ?????? ??? ?? ????? ???? ?????????. ??? ??????? ?????? ??? ???50 ??? ????? ???? ???? ?????? ????? ????? ????????? ?????? ???????? "?? ????? ????????" ??? ????? ????? ????? ???? ?? ??????? ???????. ?? ???????? ????? ??????? ??? ??????? ??????? ???? ???? ?????? –?????- ??? ??? ????? ???? ?????? ??? ?????? ????? ???? ???? ?????? ???? ?????? ???? ??????.Cut off from Sylvia’s supply of cash, Grandone’s account with the Bank of Boston was left overdrawn by $907,000. Grandone was ordered to make restitution to the Bank of Boston.??? ?? ????? ??????? ?? ??? ??????? ???? ??????? ?? ??? ????? ???? ????? ??907 ???? ????? ??????. ???? ??????? ?????? ??? ?????. ................
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