Fraud Early Warning Signs of Fraud Essay - 2462 Words

The early warning signs of fraud are, usually, always ignored. There are warning signs for every type of fraud out there. To understand the warning signs of fraud, we must first know what fraud is. Fraud is the intent to trick someone or lie to someone in order to receive financial gain. This definition varies depending of the type of fraud used, but the person committing the fraud is always looking for financial gain. There are many types of fraud out there. You have Medicare fraud, internet fraud, mortgage fraud, loan fraud, tax fraud, embezzlement, forgery, insurance fraud, and marriage fraud. These are only a few types of fraud. There are many more types of fraud out there and new types of fraud are being committed every day. This†¦show more content†¦Tax payers are putting money into Medicare throughout all of their working life and are expecting it to be there to help provide for the elderly who need it. The physician never pays taxes on any of the money that Medicare has sent him. Patients that see that physician may feel less secure and switch to other doctors if a fraud has occurred. One way this fraud is detected is when, â€Å"the unknowing physician gets a call from the Internal Revenue Service† (3). For the fraud to occur, all the thief needs is to obtain the physician’s ID or obtain a physician’s prescription pad. The physician’s ID, business address, and medical license can be obtained through hospital files. The prescription pad can be obtained at the physician’s office. Once the physician’s ID, business address, and medical license are stolen it can be sent to, â€Å"the state health department to obtain Medicaid provider numbers† (3). The thief will also change the address of the business. Patient information is also important to be able to bill Medicare or Medicaid. The reimbursement checks are sent to the new addresses and the thief forges the physician’s signature. The thief m ay use the prescription pad to prescribe unauthorized medicines. Sham clinics are also set up by thieves to write illegal prescriptions. A few warnings that a fraud is occurring is when you notice prescription pads are missing. If the InternalShow MoreRelated Fraud: Early Warning Signs of Fraud Essay2710 Words   |  11 PagesA Ponzi scheme is a type of fraud called investment fraud. It, â€Å"involves the payment of purported returns to existing investors from funds contributed by new investors† (6). Investors are usually promised a high return rate. The fraudsters attract new investors and pay back their old investors with the new investor’s money. Ponzi schemes are named after Charles Ponzi who created scheme by getting residents to invest in a postage stamp scheme. Bernie Madoff is a well known and not well liked PonziRead MoreA Brief Note On Fraud And Small Businesses1565 Words   |  7 PagesVictims - Fraud in Small Businesses, 2016). Both large and small companies require a certain amount of protection from fraudulent acts. To be naive in thinking that fraud would never occur within a company would be reckless. There are three key objectives when operating a business, whether large or small. These objectives include prevention, detection, and response, and should be implemented into every companies operations. When exploring preventative techniques, there a seven recommendations madeRead MoreRogue Trader Character Analysis1008 Words   |  5 PagesJennifer L Cranford Professor Ken Dalton ACC 409 10 October 2017 Black Yellow: Profits and Warning Signs Introduction Based on the true story of Nick Leeson, Rogue Trader is a movie about a man that went from London to Jakarta to Singapore, to become the head of the â€Å"derivatives† trading in the up-and-coming Singapore stock market. Leeson had proven to be an effective and efficient worker when he was tasked to get bear bonds sorted on his first solo tasking with Barings Bank in Jakarta. That successfulRead MoreFifa Is An Absolute Disgrace And One Of The World Cup Essay1078 Words   |  5 Pagesor practice of managing ineptly, incompetently, or dishonestly. Like for example, the value of the firm s stock fell quickly when word leaked out that officers of the company were under investigation. Also they are breach of false accounting where fraud happens when company assets are overstated or liabilities are understated in order to make a business appear financially stronger than it really is. It involves an employee or an organization altering, destroying or defacing any account; or presentingRead MoreCredit Cards And Bank Accounts1430 Words   |  6 PagesMost importantly a company should protect their assets, specifically their credit cards and bank accounts. Credit cards and bank accounts are a common source of fraud and should be recognized as the most important advice to adhere to (Beesley, 2013, para. 5).Professionals recommend â€Å"separating your personal banking and credit cards from your business accounts – this will ensure fraudsters don’t get their hands on all your money. This will also make it easier to track your business expenses and reportRead MoreA Business Fraud And Cybercrime1511 Words   |  7 Pagesfraudulent acts. To be naive in thinking that fraud would never occur within a company would be reckless. There are three key objectives when operating a business, whether large or small. These objectives include prevention, detection, an d response, and should be implemented into every company’s operations. When exploring preventative techniques, there are seven recommendations made by professionals to reduce the most often seen attacks of small business fraud and cybercrime. Most importantly a companyRead MoreAdelphi Accounting Scandal Case Study1511 Words   |  6 Pagesï » ¿Introduction Cable provider Adelphia was one of the major accounting scandals of the early 2000s that led to the creation of the Sarbanes-Oxley Act. A key provision of the Act was to create a stronger ethical climate in the auditing profession, a consequence of the apparent role that auditors played in some of the scandals. SOX mandated that auditors cannot audit the same companies for which they provide consulting services, as this link was perceived to result in audit teams being pressured toRead MoreThe Fraud By Dan Jackson1356 Words   |  6 PagesThe Fraud Dan Jacksonï€ ª, vice president of NyTell USA’s IT department, managed to defraud the telecommunications company of $1.5 million, with the help of his friend, Jake Marshall (Bloch, 2015a). Dan’s youth was gloomy and austere, dominated by his oppressive father. Twenty years after his death, Dan’s life had completely turned around. He was married with children, lived in an expensive house, wore a Rolex and designer suits, and frequently took expensive vacations. He also had a mistress (BlochRead MoreFinancial Crisis Of 2008 Struck The World1398 Words   |  6 Pagesaround the world. When the stock market collapsed, people all across America took a hit, with 2.4 trillion dollars of the Americans people’s savings vanishing in just a few weeks. This financial crisis also brought to light an unprecedented amount of fraud, over exposing people who were cutting corners. One of the most famous scams that surfaced in late 2008 was operated and executed by Bernar d Madoff, in which he perpetrated the largest Ponzi scam in American history. A Ponzi scheme is a simple swindleRead MoreBernie Madoff2651 Words   |  11 PagesBernie Madoff Research Project Abronia S. Young D03202587 On March 12, 2009, Madoff pleaded guilty to 11 federal offenses, including securities fraud, wire fraud , mail fraud , money laundering, making false statements, perjury, theft from an employee benefit plan, and making false filings with the SEC. The Fraud In March 2009, Madoff admitted that since the mid-1990s he stopped trading and his returns had been fabricated. Madoffs sales pitch, an investment strategy consisted