Essays on Detecting Fraud in the Real World Case Study

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The paper "Detecting Fraud in the Real World" is a great example of a case study on finance and accounting. Organizations continuously witness frauds that have to be dealt with in the best possible manner and strategies have to be made to combat it. Frauds not only result in a financial loss for the business but also bring a bad name to the company and have an effect on the brand name. It is seen that businesses continuously look towards filling the smaller gaps which exist in their day to day work so that scope of having frauds can be limited.

This paper looks to examine the different cases of frauds that have taken place and the manner in which the frauds could have been bought to the limelight and steps could have been taken to reduce those. This paper also builds on the ways through which the frauds can be reduced and further looks to present the mechanism which will guide the business through the process of having a clear picture and conducting their daily affairs in a normal manner. Case 1 Highlights of the case The case highlights a situation of fraud where the employee of the same company has used his peers’ credit card and purchased goods.

The incident was noticed only when the bill for the card was generated and the amount was in the tune of $800,000. The person involved in the fraud had a good reputation and the employees and his fellow colleague had words of praise for the person showing the false image the person has developed and was of the view of using other personal belongings. Type of Fraud Occur This type of fraud occurs because of the fact that the details pertaining to the credit card has been leaked.

Since the person who has committed the crime belongs to the same group and has a relation with the other person whose card has been used it becomes easy for the person to get personal details of the person. The fact that the person has been working together made it easy to get the details. In addition to it, there are numerous websites which allow the person to purchase the goods online and pay through the use of credit card has further ensured that the fraud can be easily committed and has thereby provided the scope and space to conduct such an act and commit fraud by using the details of other persons. The manner in which fraud affects The fraud committed in this situation raises concern on the relations that the peers have and also makes the other person suspect each other.

This situation also highlights that the greed to purchase and use someone else’ s belongings makes a person commit a crime and makes them take the path of fraud.

This fraud will thereby make the other fellow workers in the group or team to doubt each which will lead towards reducing reliability on each other and will raise concern regarding the decisions and the manner in which they work. Strategy to reduce it The fraud of such stature can be reduced by taking proper steps that look towards ensuring that private details pertaining to bank accounts, debit card information, credit card information, pin, and passwords are not disclosed.

This will also require that when a person uses a card to purchase online ensures that he has properly signed off and uses it in the presence of no one else (Chan, Fan, Prodromidis & Stolfo, 2009). Further, all care and precautions should be taken to ensure that no information is leaked and all information is protected.


Barse, E. L., Kvarnstrom, H., and Jonsson, E. 2003. Synthesizing test data for fraud detection systems. In ACSAC, pages 384–395. IEEE Computer Society.

Cahill, M., Chen, F., Lambert, D., Pinheiro, J., and Sun, D. 2002. Detecting fraud in the real world. In Handbook of Massive Datasets, pages 911–930. Kluwer Academic Publishers.

Chan, P., Fan, W., Prodromidis, A., and Stolfo, S. 2009. Distributed data mining in credit card fraud detection. IEEE Intelligent Systems, 14:67–74.

Kou, Y., Lu, C.-T., Sirwongwattana, S., and Huang, Y.-P. 2004. Survey of fraud detection techniques. In Networking, Sensing and Control, 2004 IEEE International Conference on, volume 2, pages 749–754 Vol.2.

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