FRAUD, CORRUPTION AND CYBER CRIME IN A GLOBAL DIGITAL NETWORK Economics, Management and Financial Markets, June 2011
Authors: Blajan, Adrian; Ionescu, Luminita; Mirea, Viorica
Start Page: 373
Fraud cannot be eradicated, but fraud and corruption risks can be managed like any other risks. The economic crunch created the premises for a substantial increase of the computer crime and fraud. Computer crime or cyber crime refers to any crime that involves a computer and a network, where the computers may or may not have played an instrumental part in the commission of the crime. The global total of criminal gain from cyber fraud is impossible to estimate precisely, but has increased exponentially in the past 4 years. However, in the last few years, the computer specialist and internal controllers understood the fraud schemes and their characteristics and they know how to act to prevent them. Keywords: fraud, corruption, cyber fraud, digital network
Bishop and Hydoski show how in today's highly leveraged global economy, major fraud or corruption can set off a chain reaction resulting in serious corporate harm or failure. According to Bishop and Hydoski since the "Crash of 2008" led to economic conditions softening dramatically around the globe, fraud risks for businesses appear to be on the rise. Their research show how a slowing economy may increase pressure on corporate executives to meet performance goals set in rosier times, or to demonstrate that the current executive team should be retained by shareholders. Individual managers may feel a much greater risk of job loss than usual, potentially making them eager to avoid having to report a performance shortfall in their operating unit. From all the potential loss, fraud is the most complex and difficult to detect. Fraud represents intentional actions of the part of the client or its personnel to the client's financial...
Please join StudyMode to read the full document