IntroductionCases retrieved from: http: //sgp1.paddington. ninemsn. com. au/sunday/feature_stories/transcript_1572.asphttp: //news. softpedia. com/news/New-Charges-in-Major-Australian-Bank-Fraud-Case-191372.shtmlCases of financial fraud have been rampant in the recent past. During the last decade, many organizations have been hit by a series of high profiled financial frauds. Many organizations have collapsed on the account of such fraudulent activities (Nocera 2012, p. 19). In the recent past, some of the scandals that amazed the world were Enron and WorldCom. These two have been considered the biggest financial scandals of all time. These scandals were executed mostly through misrepresentation of the financial performance of the organizations. Most organizations could not discover some of these fraudulent activities even under the watchdog of external auditors.
This explains that those schemes were executed intelligently with people who understood well the presentation of financial statements. In overall, most of those perpetrators found liable were sentenced for imprisonment. While at the same time, there are those whose cases are still on-going while others escaped uncaught. These scandals have enlightened most of the players in the industry. The stakeholders are becoming more sensitive to possibilities of financial frauds. Many policies have been drafted in different sectors with a target of reducing the rate of these incidences (Harvard Law Review 2009, p.
17432). In this report, our focus will be upon two organizations that were faced with such financial crimes. These organizations include a bank and the Super Fraud Case. Description of the CasesCommonwealth Superannuation Scheme: Super Fraud FundThis case involved a pattern of players. The perpetrators of the scheme coordinated the execution of the plan in a very unique manner. The perpetrators planned to steal over $150 million from the superannuation fund. The money belonged to Commonwealth Superannuation Scheme.
This scheme is among the largest schemes responsible for managing super funds for over 50,000 members. The funds were stolen by use of fake identification documents. The custodian to the funds, by then JP Morgan received a fake fax. The fax involved the request to transfer some money to certain accounts. This appeared exactly as many other faxes that the custodian had been dealing with in the past. Therefore, the custodian had no reason to doubt the transaction. It is after the authorization of the transaction that she realized that the money was channelled to unique accounts all over the world.
The money was redirected to various bank accounts in different countries which had not engaged the scheme in any transaction before. The deal was executed within a very short time because of the ease of electronic money transfer. The level of sophistication of this fraud scheme was above the security of the super fund. Bank FraudThis was fraud involved stealing the money from some banks in Australia using information gained through insider trading. This case involved stealing from Australian banks and laundering the money outside the country.
The fraudsters took advantage of the internal connection to gain information that will help them extort money from various banks. The gang consisted of a group of people with each playing a given role. The perpetrators had already stolen $1million and were on a pure strategy to steal $100 million from bank accounts of customers to the bank. This group of people had connection from people working in banks in Australia. The various employees that were used had access to confidential information about the customers.
The employees accessed the confidential details of some of the account holders of the bank. The information was then channelled to the outside gang who worked on the model of executing the crime. At the end of it, the organized gang used false documentation to open accounts in foreign countries. This was to be the destination of the money that was to be stolen from the banks.