Profiling The Fraudster. Padgett Simon

the three types or classifications of corruption, asset misappropriation, and fraudulent financial statements, the list of occupational fraud types, schemes, and methodologies is endless and includes the following:

      • Theft. The intent to permanently deprive another, usually of either assets or money.

      • Procurement fraud. Stealing items purchased or the funds intended to pay for those purchases and covering the theft by false accounting entries.

      • Bribery. Offering or requesting, paying or receiving anything of value with the intent to influence actions, inactions, opinions, or decisions, usually paid up front.

      • Corruption. The abuse of a position of power to gain an advantage.

      • Embezzlement. When a person entrusted with safeguarding an organization's money or property misappropriates it for his or her own benefit.

      • Computer sabotage. Using a computer virus or some other highly technical method to incapacitate the business's computer system with a view to extortion.

      • Counterfeiting. The copying or imitating of an item or document without due authority and passing the copy off as being an original.

      • Forgery. An unauthorized change to a real or original document, which is then used to deceive in order to obtain an advantage.

      • Credit card fraud. The unauthorized use of a credit card to obtain value and personal gain.

      • Extortion. Illegally obtaining property from another by actual or threatened force, fear, or violence.

      • Financial statement fraud. Reporting incorrect results or facts in the financial statements in order to deceive the reader and user. Such fraud can be committed by omission.

      • Insider trading. Using inside, confidential, or advance information to trade in shares and obtain an advantage.

      • Intellectual property theft. The theft and sale of cutting-edge technology by employees from their employers.

      • Kickback. Paying an employee a portion of an inflated purchase price as a reward for facilitating the deal, usually after the event.

      • Bank fraud. Engaging in activity where fraudulent transactions go through a bank.

      • Money laundering. The movement of the proceeds of crime to disguise the illegal source.

      It is usual, and perhaps a good time now to note, that the counterfeiting and forgery methodologies are quite often those used to hide the misrepresentation implicit in the fraud act itself and are fundamental to most forms of organizational fraud and corruption.

      Cybercrime

      Cybercrime warrants a separate discussion as a methodology or fraud type as it has specific advantages to the fraudster and corresponding challenges to the investigator, enabling the fraudster to effectively remain anonymous, thereby camouflaging his profile. The threat of cybercrime is growing, according to the Association of Chartered Certified Accountants' February 2012 edition of Accounting and Business international magazine. Cybercrime is now ranked as one of the top four economic crimes, after asset misappropriation, accounting fraud, and bribery and corruption, according to PricewaterhouseCoopers' (PwC) Global Economic Crime Survey 2011. Of the 3,877 respondents polled in 78 countries, almost half (48 percent) thought the risk of cybercrime was on the rise, with only 4 percent believing it was falling. Worryingly, stated PwC, 4 in 10 respondents said that their organization didn't have the capability to prevent and detect cybercrime.