Professional Documents
Culture Documents
By
Verna M. Arts
AIU Online
Fraud Prevention 2
This paper is to assist an undisclosed College University in dealing with the fraudulent
act of identity theft. Unfortunately, it has internally affected 15 professors' credit reports of
fraudulent purchases such as purchasing and applying for: cars, student loans, credit cards,
houses and just within a month’ time. An inquiry began when professors reported on numerous
billings for items they never purchased. Therefore, it was fair to assume that for this to affect so
many professors, that it was fair to assume that there was a breach within the University’s
financial dealings (cashier or top executive) or someone privy to social security numbers, such as
a personnel employee for example. Therefore, the auditor is now under the impression that any
employee could be committing fraud, including all levels of management. (acfe.com, n.d.) This
is why it is very important not to inform the staff, or management of an audit while being
performed. In addition, until there is proof to back-up the allegations with sufficient evidence to
A case theory approach is an investigator's analyzes on available data (the details of the
allegations). A major part of the fraud investigation is gathering evidence to support the
position that the alleged fraudulent act was intentional. In doing so, he/she creates a basic plan
by initializing a hypothesis, or theory as to the initial link to purchases from the professor’s
credit cards.
The examiner makes assumptions based on several test theories and with the triangle
model theory. For example, the offender expects to use the professor’s identity to gain items
Fraud Prevention 3
such as cars and student loan benefits under their good credit and name. The investigative
methods used to identify the perpetrator(s) of these crimes would be to start with the Triangle
Pressure – The stressors placed on those that have real-life battles with financial
problems. The result is having too many bills and not enough income, or poor handling of
money. Problems related to gambling or drug addiction, or even alimony payments not met.
Rationality – Rationalizing the reason for their behavior while never taking responsibility
for their actions. Reasoning such as the company owes them, or they have been a loyal
employee, or the company never gives them a raise; or not given a promotion.
Opportunity – Here is where the plot thickens, they now have access or a means to gain
access to private information that they can use to their benefit. Say for instance a cashier who
handles credit cards swipes the card but uses the receipt to copy down the credit card
information.
Therefore, the examiner uses these tools to find out who has benefited lately with these
items. Performing a background check on the suspect will give more weight to the examiner’s
claim of fraud. In addition, the checking of their bank accounts will show if there have been any
unexplained entries to their accounts covering the period of the theft. This information can be
crossed-checked by the professor’s checking account as well. The thief could be taking money
from the professor’s account and depositing it into the thief’s account. Not all criminals are
smart because if they were they would not leave a paper trail that leads back to them.
Fraud Prevention 4
The gathering of real evidence is the first step in investigating a fraudulent act and
following the paper trail would be the next step in investigating this crime and then narrowing on
Secondly, interviewing the 15 Professor’s that were scammed could shed light as to
where and what card they frequently used while in the University within the last two months or
so. While looking into traits of a fraudster, it is wise to view the items that were purchased with
the description of the items it could narrow the suspect list to a minimum. Say for instance there
is a student loan application being used, this narrows it down to a parent trying to pay for their
child’s education, or an employee/student already in school trying to access more money through
illegal means. As mentioned earlier about a paper trail, all purchases made through stealing the
identities of these professors has to mailed or shipped to an address, unless it’s a P.O. Box and
even that can be traced to someone. Therefore, the more orders placed, the more likely it will
lead back to the thief. For example, shipping packages to Africa would be harder to trace.
The third step is after the investigation, which instructs the company and its employees
on how to stay safe by offering their expert advice and knowledge as to how to keep the business
• After this ordeal, the professor’s will probably be more aware of their
the University will need to implement a better security procedure into effect.
• Only use one credit card at a time, leave the others home and in a safe place.
Fraud Prevention 5
• Sign your credit or debit cards with a unique signature and give this signature
• Never carry your social security card around; it makes it easy for those to gain
your identity.
• Sign up for credit alert companies that watch for fraudulent activity online and
• Change your password to your credit cards every six months to a year, it costs
nothing to have your credit company or bank issue you another password.
• If the University wants their employees and their stockholders to gain faith in
their system then the following measures should take place immediately:
Normally, this act of thievery is called larceny, and depending on which state the offense
was committed depends on the severity of the crime, and by how much damage was caused
monetarily. This act can range from a misdemeanor to a felony which carries a year or more
For offender’s caught in the act and punished by the judicial system should know that
even though they will pay for their crimes, it will never justify or make up for a person who has
to rebuild their credit history and their reputation. Furthermore, the victim’s whose identity was
Fraud Prevention 6
stolen will be put through so much bureaucracy in order to clear up the illegal misrepresentation
of their name.
Fraud Prevention 7
References:
http://www.acfe.com/uploadedFiles/ACFE_Website/Content/documents/content-fraud-
brainstorming.pdf
Retrieved from:
http://www.acfe.com/uploadedFiles/ACFE_Website/Content/documents/content-fraud-
brainstorming.pdf
challenges-in-forensic-investigations.html
fraud-monitoring-and-
forensicinvestigations.html?id=us:2ps:3bi:risk:eng:adv:::na:brKluQ4c::76759704260838:
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