Management and Organizational Studies 3367A/B Lecture Notes - Lecture 3: Data Integrity, Cloud Computing, Disaster Recovery

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3367A/B
• Professor: weingartner

Document Summary

The perpetrator uses false documentation to cause a payment to be issued for a fraudulent purpose. Fraudulent disbursement is issued in same manner as a legitimate disbursement. Schemes: shell company schemes, non accomplice vendor schemes, personal purchases schemes. Shell company: very easy to set-up, low cost, could stop this by having an approved vendor list. Issues: (cid:374)o (cid:271)a(cid:272)kg(cid:396)ou(cid:374)d (cid:272)he(cid:272)k, she did(cid:374)"t ha(cid:448)e to p(cid:396)o(cid:448)e (cid:449)ho she (cid:449)as, did(cid:374)"t ha(cid:448)e to talk about what her business was going to be, paid with visa (could use stolen information and card), could use fake address. Pass through billing scheme: shell company buys merchandise and sells it to a victim company at an inflated price. Invoices that are paid right away cause a red-flag: most companies will pay the day before the due-date. Prevention of shell company schemes: maintain and regularly update an approved vendor list, segregation of duties, those (cid:449)ho set up the (cid:448)e(cid:374)do(cid:396) list a(cid:396)e(cid:374)"t the o(cid:374)es (cid:449)ho pa(cid:455) the(cid:373)