Corporate Fraud PreventionEssay Preview: Corporate Fraud PreventionReport this essayCorporate Fraud PreventionOctober 9, 2011AbstractFraud is a deliberate misrepresentation that causes someone to suffer damages, usually a loss in money. If someone lies, this is considered fraudulent in some form. Financial reporting fraud is committed to make an organization look better in earnings. Most fraud cases are conducted by white collar criminals, or business professionals that have the knowledge and intention to commit a crime. Corporations need a plan detailing how to deal with fraudulent acts. The plan of action will be discussed along with how to implement it.
Corporate Fraud PreventionProtection of Corporate ExecutivesIdentity theft is when someone uses someones personal information, like their social security number, name, credit card number, without the persons permission. Identity theft is committing fraud. The Federal Trade Commission (FTC) has estimated that as many as 9 million Americans will have their identity stolen each year (ftc.gov). Everyone is at risk for identity theft including corporate executives.
Identity thieves are skilled in using a variety of methods to get ahold of their information. The corporation needs to have a confidentiality policy set to make sure that all private information about their employees is safe. All documents should be placed in a shredder box with a lock or shredded that obtain the confidential information. Thieves like to go dumpster diving and will rummage through trash to find the personal information. A special storage device can be used to skim credit card numbers. Another way would be sending out spam or a pop-up to the corporate executives, which is called phishing, where they try to act like a bank.
If the corporation receives mail, they should make sure that all outgoing and incoming mail is either picked up by the mailman or taken to the post office. Corporations have to collect social security numbers, names, addresses and account numbers from their employees. The first thing an executive should do, if they have their identity stolen or their personal information, is to call the local police department. The situation needs to be reported and if the police cannot handle it, then call the FBI or U.S. Secret Service. The bank or business accounts that may have been jeopardized should be contacted next with the stolen information.
Major credit bureaus, like Equifax and Experian, can provide additional information about how their social security numbers might have been compromised (business.ftc.gov). The credit bureaus can put fraud alerts on all your accounts. Visit www.ftc.gov/idtheft to find all the information needed about how to deal with identity theft. A complaint should be filed with the FTC online or call 1-877-ID-THEFT, which will be made available to law enforcement. Corporate executives should not use their social security number for any reason other than new employment, to join a bank, or apply for certain loans or credit services. All personal documents containing these numbers should be placed in a locked safe box or at a bank in a safety deposit box.
This notice does not contain any personal information. The information does not represent a security breach, such as any intrusion or computer intrusion on your computer, smartphone, and email. The FTC does not maintain this information for historical reasons. It is not a substitute for having a complete credit history, credit history search or other analysis. This includes information not covered under the FTC’s Privacy Practices. Consumer Reports, a consumer protection agency, is an independent agency of the U.S. Consumer Product Commission. Consumer Reports is committed to protecting the privacy of consumers and providing accurate information. The FTC respects your right to choose, but its data collection and use is not at odds with your personal interest, including your ability to fully understand and value this information. We will update this notice with your updated information. Your access to this information can be secured through a secure connection by calling 1-877-1-FTC-HELP (1-800-382-5678), with a quote for 1-800-382-4513. If you do not understand how the FTC collects, uses, uses or discloses such information on your behalf, please do not download or use this data, and do not share any information. If you do not reside in the U.S., please do not download or use this data. This website is updated by Consumer Reports. Visit our Terms of Use. By continuing to use this website at that time you express your intent to update this information from time to time, and by following this notice carefully, we will send you an updated statement about our Privacy Practices. To confirm or amend the information contained on this website is not an effort to limit the free information we provide you, we use third party websites to improve and enhance the privacy of our users. We may make modifications to this information in order to comply with federal, state and local laws which may affect the information in your usage of these third party websites, or in our systems. For further information please contact the FTC at 1-866-373-8814 or submit a question or comment along with your response to this notice. All information used to manage your account, such as credit, accounts, credit score, and more, is provided voluntarily by you to Consumer Reports, a service for consumers and independent legal firms providing information for the benefit and efficiency of the consumer. We may change these terms and conditions at any time without notice. For complete privacy policy information, please visit: http://www.consumerreport.gov/privacy/
Consumer Reports also provides credit information provided by many banks. The information you provide on this website is provided to banks for the purpose of our credit reporting procedures. Many of these reports are linked to online reviews, and we do not make any warranties or representations regarding the accuracy, completeness, or completeness of the online reviews of their reports. You are solely responsible for the accuracy
This notice does not contain any personal information. The information does not represent a security breach, such as any intrusion or computer intrusion on your computer, smartphone, and email. The FTC does not maintain this information for historical reasons. It is not a substitute for having a complete credit history, credit history search or other analysis. This includes information not covered under the FTC’s Privacy Practices. Consumer Reports, a consumer protection agency, is an independent agency of the U.S. Consumer Product Commission. Consumer Reports is committed to protecting the privacy of consumers and providing accurate information. The FTC respects your right to choose, but its data collection and use is not at odds with your personal interest, including your ability to fully understand and value this information. We will update this notice with your updated information. Your access to this information can be secured through a secure connection by calling 1-877-1-FTC-HELP (1-800-382-5678), with a quote for 1-800-382-4513. If you do not understand how the FTC collects, uses, uses or discloses such information on your behalf, please do not download or use this data, and do not share any information. If you do not reside in the U.S., please do not download or use this data. This website is updated by Consumer Reports. Visit our Terms of Use. By continuing to use this website at that time you express your intent to update this information from time to time, and by following this notice carefully, we will send you an updated statement about our Privacy Practices. To confirm or amend the information contained on this website is not an effort to limit the free information we provide you, we use third party websites to improve and enhance the privacy of our users. We may make modifications to this information in order to comply with federal, state and local laws which may affect the information in your usage of these third party websites, or in our systems. For further information please contact the FTC at 1-866-373-8814 or submit a question or comment along with your response to this notice. All information used to manage your account, such as credit, accounts, credit score, and more, is provided voluntarily by you to Consumer Reports, a service for consumers and independent legal firms providing information for the benefit and efficiency of the consumer. We may change these terms and conditions at any time without notice. For complete privacy policy information, please visit: http://www.consumerreport.gov/privacy/
Consumer Reports also provides credit information provided by many banks. The information you provide on this website is provided to banks for the purpose of our credit reporting procedures. Many of these reports are linked to online reviews, and we do not make any warranties or representations regarding the accuracy, completeness, or completeness of the online reviews of their reports. You are solely responsible for the accuracy
The key to avoid identity theft is to guard financial information, by only using card to pay in person or on secured site. Keep social security card confidential by not giving it to anyone unless you know them (fraud.org). Beware of crooks who act like they are from a company the executive does business with by phone or email. Keep all mail that contains account numbers in a safe place. Get off of any credit marketing lists by calling 1-888-567-8688. Make sure to memorize all PIN numbers and passwords and do not leave them in a wallet or purse. Check credit reports regularly and ask for free copies of the credit report.
Loss Prevention Education WorkshopThe corporation or business needs to provide in-service hours for employees to educate them on loss prevention. The mandatory classes should be offered at different times and days to fit employee schedules. The classes could also be offered online for employees that work out of town or cannot attend a class. Loss prevention education is used to prevent loss or theft within a business or corporation. A corporation can conduct quarterly inventory checks on equipment and install security cameras for prevention.
One example of theft is vendors who give out samples. The vendors also might unload their trucks and walk away from the store. A vendor that might be in and out frequently and on the move in the store might be stealing. A vendor who will service his product before he signs into the office is another example. If a credit slip is not issued when exchanging a product evenly, a red flag should be thrown up. An invoice should contain descriptions of the merchandise delivered. One company made sure to check all cash registers for theft. Some examples of that would be: open drawer, no sale ring, voiding a sale, short changing, penciled additions, and money theft. Employees may also steal directly by having the merchandise on them or at the back door. Bank deposits and payroll accounting should be monitored completely to make sure fraud is not being committed.
Employee theft can be prevented by hiring employees who have a background check performed. Screening of employees who apply online