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Identifying and responding to corporate fraud in the 21st century
Adam Graycar and Russell Smith
2002
in: Security Oz Magazine, no. 18, pp. 126-40.
Abstract
The prevention and control of fraud are two of the great challenges facing Australia in the years to come. This paper, which was originally presented to the Australian Institute of Management, 20 March 2002, Sydney, focuses on four types of fraud which have been greatly facilitated by the convergence of computing and communications technologies: telecommunications crime, electronic funds transfer crime, identity related crime and online share market manipulation. The paper then discusses useful practices for reducing the risk of becoming a victim of fraud, which involve looking for behavioural, statistical and organisational anomalies, as well as four general preventive strategies: effective corporate governance, fraud control policies, personnel monitoring and computer usage monitoring. After discussing the reasons why many organisations prefer not to report fraud to the authorities, the paper concludes by outlining the consequences of failure to respond to such fraud.