Fraud

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Abstract
The purpose of this paper is to explore fraudulent activities within the business environment. Trends observed indicate a need for increasing secure management. Review of scholarly journals, industry publications and text books were performed to gather data. Findings support that implementation of fraud reporting mechanisms assist in detecting fraud.

Abstract 3
Introduction 4
What is Password Hashing? 4
Defined 4
Hashing Methodologies 5
How Password Hashing is Used 6
Add SALT for Taste? 7
Who Should Care and Why Hashing is Important 8
Individual Users 8
Business Users and Password Security 9
Password/Login Attack Methods 11
Rainbow Tables 11
Dictionary Attack/ Brute Force Attack 11
Conclusion 12
Sources 14
Introduction
If I told you that 5% of your business revenues were being lost but there is something you can do to prevent that from happening, would you be interested in learning more? This paper will create awareness of fraud by explaining how you can identify fraud, as well as explain the importance of the implementation of prevention programs and anonymous reporting venues within your respective organizations.

Fraud Defined
The Association of Certified Fraud Examiners (ACFE) is the premier association of fraud examiners dedicated to researching fraud trends. The ACFE defines occupation fraud as: “The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets.”

Fraudsters
According to ACFE data, Most occupational fraudsters are first time offenders with clean employment histories. Approximately 87% of occupational fraudsters have never been charged or convicted of a fraud related offense. Fraudsters are more likely to perpetrate fraud during economic downturn in order to please investors, avoid contractual obligations, achieve compensation targets, or simply keep their job. Fraudsters also have a greater opportunity to commit fraud during a downturn because duties often become less segregated as firms downsize. According to the data provided by the ACFE, there is a strong correlation between the fraudster’s level of authority and the losses resulting from fraud. The median loss in Owner/Executive fraud is more than three times the loss caused by managers and managers in turn cause losses approximately three times higher than employees. This result is expected given that higher levels of authority generally mean a perpetrator has greater access to an organization’s assets and is in a better position to override fraud controls.

According to the ACFE, Accounting has the largest percentage of fraud cases, followed by operations. The highest loss or fraudulent event comes from executive upper management. Not surprisingly, schemes committed by those who were in the executive upper management caused the largest median loss, approximately $500,000, while customer services cases resulted in the lowest median loss, $30,000. Schemes committed by those in the accounting department ranked fifth on median loss, at $183,000, but this department accounted for 22% of all reported cases, far more than any other category. Even the board and internal audit can and are responsible for fraud events. No one is impervious to fraud.

The Fraud Triangle
Most people that commit fraud against employers are not career criminals. They are trusted employees with no criminal history and do not consider themselves to be law breakers. So what factors cause these people to commit fraud? The most widely accepted model for explaining why good people commit fraud is the fraud triangle developed by Dr. Donald J. Cressey, criminologist. First, there is the opportunity component. We all have opportunity within the course of our employment. We approve expense reports, post journal entries, hire employees, hire vendors and procure. Secondly, there exists a...
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