The Effect and Prevention of Cyber Crime

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

1. Introduction

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.

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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 statements, assets or both.

Fraud is an act of making money by making people to believe something which is not true. Fraud is a deliberate deception perpetrated for unlawful or unfair gain. Fraud is not an unintentional mistake, such as incorrect accounting estimate, the application of a cost to an incorrect account or a lost inventory tag during a physical count. Between fraud and corruption is a strong connection. Most of the fraudsters and scammers are connected to the company or bank, where the fraud is developed. Inside thefts are very difficult to detect, some of them could be part of the management team. Detecting fraud is the purpose of financial control and internal audit for any kind of organization. In the last years, fraud, corruption and computer crime have increased significantly.

2. Cyber Fraud and Solving

Bryan et al. explained about the financial cyber fraud and its development. "Online financial cyber crime has increased exponentially in the past 4 years, forming the foundation of a trend that shows no signs of abating. What began with simple 419... Previewing 15% of this document

Full document contains 6 pages
Publisher: Addleton Academic Publishers
Area: Economics

... to prevent the cyber crime. Thus, corruption has a corrosive impact on both overseas market opportunities ... ... ] There is no perfect system for preventing cyber crime or fraud. Sometimes hackers attack financial ... ... crimes could be prevented by increasing security for data and developing the internal control. Cyber Fraud ... ... model with negative consequences in the global digital network. According to Bryan, within the cyber fraud ... ... . However, managing the fraud, corruption and cyber crime requires involvement and help from all employees ... Abstract: 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. [PUBLICATION ABSTRACT]