Just question 6 and 7 Taken From: Fraud Examiners Manual: Financial Transactions
ID: 3607636 • Letter: J
Question
Just question 6 and 7 Taken From: Fraud Examiners Manual: Financial Transactions and Fraud Schemes "Theft of Data and Intellectual Property "Financial Institutions Fraud" Payment Fraud" Theft of Data and Intellectual Property 1. Define Intellectual Property. What is the difference between Competitive Intelligence and Corporate Espionage? Discuss six (6)-eight (8) Targets of Corporate Espionage and three (3) or four (4) places where Intelligence Professionals get Information 2. 3. 4. List some of the Favorite Targets of Intelligence Professionals (e.g. Research and Development) 5. What are some ways information is lost or stolen? Describe four (4)-six (6) Financial Institutions Fraud 6. Review and summarize a recent (within the last year or so) news account of a financial institution fraud. Link this article to one of the frauds discussed in the Course Manual (see pages 369-424). Include where you found the article/account (newspaper, Internet search), the source (e.g. Wall Street Journal), how the fraud was discovered, and preventative measures that were or could be employed Payment Fraud Select one of the three sections in this topic (Check Fraud, Credit Card Fraud or Electronic Bill Payment/Person-to-Person Payment) and summarize that section. 7.Explanation / Answer
Q7:
Check Fraud:
It refers to criminal acts category which involves in making the unlawful cheques in order to acquire funds illegally which don't exist to the account holders account.
Specific kinds of cheque frauds include cheque kitting where the funds are deposited before the end of the float period to cover the fraud and paper hanging, where the float offers the opportunity to write fraudlent cheques but the account is never replenish Ed.
Types of cheque frauds
1. Cheque kiting- refers to use the float to take advantage and delay the notice of the funds which do not exist.
2. Embezzlement- aSme cheque kiters fully intend to bring their accounts into good standing kno ns as paper hangers, have pure fraud in their mind which attempts to take the money and run.
3. Bad cheque writing- cheque written to a merchant or other recepient hoping the receiver will not suspect the cheque will not get cleared. The buyer will then take the possession of the cash goods purchased with the cheque and hopes that the recepient will not take any action.
4. Abandoment- paper hangers deposits the cheque one time that they know is bad into her account.when the bank considers the funds available he withdraw the money from the account before bank gets informed that the cheque is bad.
5. Forgery- is the method of defrauding the bank. This includes like adding words or digits to the original cheque given.
Passing a cheque for the amount which is not in the account is considered as a criminal act. The practice followed by banks has been refrain from prosecuting cheque writhers of the cheque reaches the bank after sufficient funds have been deposited which allows it to clear. But the account holder is held fully liable for all bank penalties and criminal charges if in case the cheque is not cleared.
Banks to control the cheque fraud offers their customers the fraud protection services. It is impossible for banks to know every cheque that a customer writes and which may or may not be a fraud. The responsibility is on the customer to make the bank aware what they writes. These systems allows customers to upload their cheque to the bank which includes all the main fields suchas cheque number, amount and payee name.
So when a cheque is present to the bank and if any of the details are not matched then the cheque may be considered as fraud.
This will help with the external frauds. But there are cases where the employee of the bank send information to the bank with fraud items then the bank cannot deny to pay this is called internal fraud.
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