ACT_580_Module_2_Discussion3

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Colorado State University, Global Campus *

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580

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Information Systems

Date

May 14, 2024

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docx

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2

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The Association of Certified Fraud Examiners (ACFE) has excellent resources including: white papers from industry-leading companies on emerging trends in the fraud industry, tips to stay ahead of fraudsters, and industry-specific strategies to stay current in the forensic accounting and fraud examination professions. 1. Click here (Links to an external site.) to review the free white papers from the ACFE. Select one of these white papers that cover a topic of personal and/or professional interest to you. Download the white paper and attach a copy of it to your initial Discussion posting. Include the title of the paper as part of your initial posting. 2. Do the following in your initial response: o Prepare an annotation of the white paper and answer the following points and questions. (Reminder: An annotation is a summary of the main points of the white paper you have chosen to summarize for the class, organized to include a correctly formatted APA reference.) o Problem: What was the major fraud or forensic accounting-related subject addressed in the white paper? Results: What was the result or conclusion reached in the article to address the fraud or forensic-related accounting subject? Application: How might practitioners or your classmates potentially apply what was covered in this white paper in the real world? Be specific. The white paper this post is about is titled “6 Ways to Spot Insider Fraud Before It Strikes.” The type of fraud this white paper is about is obviously insider fraud. It lists out many different statistics related to insider fraud along with ways to determine when it is happening so it can be stopped. According to the white page, insider threats have grown significantly recently, and the costs of these threats have also grown. Incidents of fraud caused by people within their own companies grew by over forty percent from 2020 to 2021, and organizations were forced to increase the costs associated with stopping insider fraud by over thirty percent over the course of the same years. Market trends were shown that demonstrated many of the reasons why insider fraud is more rampant than before. Three of every four investigations into insider fraud that eventually led to criminal prosecutions were from data thefts that occurred within the fraudster’s own home. Listed as reasons for
increased insider fraud were the following; pressure from life can combine with opportunity and rationalization to allow an employee to steal from the business, worsened economic conditions, common fear of reporting potential fraud because of potential reprisals or punishments if they are wrong. It is recommended that because of these potential reasons for fraud to happen or continue to happen, companies should have a confidential reporting system for employees to report on potential fraud anonymously and strong controls to monitor their employees, particularly their remote employees. The six practical steps listed by the white page were the following: monitor of all user behavior while work is in progress, compare this behavior with the peer group of this individual, detect commonalities in the actions of all of a business’s employees, use visual tools to detect suspicious activities, increase and add training and awareness for fraud, and the avoiding of reliance on audits to catch fraud. These build a strong foundation for a company to fight back against potential insider fraud. They encourage a stronger work culture through trainings and awareness and emphasize the importance of monitoring employee actions while working (particularly with confidential data). Practitioners can apply these recommendations by ensuring there are regular trainings about insider fraud and possibly trying to keep as many employees in the office as possible. Since remote employees are more likely to commit insider fraud, it is better to decrease this risk by having more employee in-person. Setting up security measures related to company computers and devices is also very important. Practitioners can work to ensure that all company devices and devices used for work purposes have proper safeguards set up against performing non-work related functions and are always monitored by the company and IT personnel. Reference: Bottomline. (2022). 6 ways to spot insider fraud before it strikes . Bottomline.com. White Pages Module 2 Discussion Post.pdf
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