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Date: April 29, 2024 Mon
Time: 11:22 pm
Time: 11:22 pm
Results for financial fraud
8 results foundAuthor: Villasenor, John Title: Shadowy Figures: Tracking Illicit Financial Transactions in the Murky World of Digital Currencies, Peer-to-Peer Networks, and Mobile Device Payments Summary: The history of the movement of money is as complex and varied as the history of money itself, and includes ships laden with gold bullion, desert caravans carrying salt or cowry shells, armored trucks filled with banknotes, paper checks, and today, a large and quickly growing list of digital transfer methods. Secrecy and anonymity have always played roles in the movement of money, most commonly because they offer a strong measure of privacy and protection against being targeted by thieves, but also because the parties in financial transactions can have other reasons — some legitimate, some not — for keeping a low profile. The combination of the enormous growth in social networks, the complexity of peer-to-peer systems and software, and the number of Internet and wirelessly connected devices is altering the landscape of financial transactions at a rate and to a degree that is unprecedented. Today, such transactions can be conducted not only using traditional, state-backed currencies, but also through purely digital currencies, virtual currencies, and virtual goods. In addition, mobile phone-based money transfer systems enabling traditional currencies to be moved in novel ways are experiencing rapid adoption, particularly in developing nations. Almost no one would argue that governments do not have a right to track and trace digital financial transactions associated with activities such as terrorism and human trafficking. It is less clear, however, how governments can surmount the formidable technical and organizational challenges associated with detecting and monitoring these transactions. The solution will require a combination of self-regulation, government-industry collaboration, and change in both technology and culture within government agencies. Details: Houston, TX: James A. Baker III Institute for Public Policy, Rice University, 2011. 24p. Source: Internet Resource: Accessed September 2, 2011 at: http://www.bakerinstitute.org/publications/ITP-pub-FinancialTransactions-082911.pdf Year: 2011 Country: International URL: http://www.bakerinstitute.org/publications/ITP-pub-FinancialTransactions-082911.pdf Shelf Number: 122619 Keywords: Financial CrimesFinancial FraudMoney Laundering |
Author: Blanton, Kimberly Title: The Rise of Financial Fraud Summary: Individuals save for decades to ensure that they will have financial security in retirement. That security can be threatened or eliminated virtually overnight if an individual who is in or near retirement becomes the victim of a financial fraud, such as a Ponzi scheme or sham investment in high-yield securities. Fueled by the Internet, the incidence of financial fraud is on the rise. Law enforcement officials and fraud experts expect the trend to continue or accelerate as aging baby boomers increasingly become targets. According to the Federal Trade Commission (FTC), Americans in 2011 submitted more than 1.5 million complaints about financial and other fraud – up 62 percent in just three years. But these data do not fully represent fraud’s pervasiveness, because researchers say that it often goes unreported to the authorities. Identifying the patterns of fraud can be helpful because scams and the con men who perpetrate them, once identified, are more easily recognized by a potential victim. This brief discusses fraud trends and describes some of the patterns. The first section documents the surge in fraud. The second section identifies what is driving this increase. The third section explains why seniors are often targets of fraud. The fourth section defines four major categories of financial-product fraud. The fifth section reports three of the many disguises used by scammers to persuade their targets to purchase investments or financial products. The conclusion is that all Americans, especially older Americans, should learn how to recognize the signs of fraud. Details: Chestnut Hill, MA: Center for Retirement Research at Boston College, 2011. 8p. Source: Brief IB No. 12-5: Internet Resource: Accessed March 9, 2012 at http://crr.bc.edu/images/stories/Briefs/IB_12-5.pdf Year: 2011 Country: United States URL: http://crr.bc.edu/images/stories/Briefs/IB_12-5.pdf Shelf Number: 124410 Keywords: Elderly VictimsFinancial FraudInsurance Fraud |
Author: Blanton, Kimberly Title: The Rise of Financial Fraud: Scams Never Change but Disguises Do Summary: Americans submitted nearly 1.1 million complaints about financial and other fraud in 2010 – a 35 percent increase in just three years. But scammers may be difficult to recognize, because they constantly alter their disguises. A primary goal of this report is to provide insight into the disguises con men use to perpetrate their age-old fraud schemes and to recruit their potential targets, who may be retirees, members of the military, college students, the unemployed, homebuyers, investors, low-income families, among others. Some con men, for example, position themselves as a sort of rescue squad, swooping in during a natural or man-made disaster and offering a product or business opportunity to ameliorate the crisis – and bring untold wealth to investors. Others infiltrate churches where they claim to be doing God’s work. Church-based scams are the most common form of “affinity fraud,” which occurs when con men exploit an interest shared by many potential victims, whether a religious belief or country club membership. There are affinity scams against Iranian-Americans, Cubans in Miami, Spanish speakers, Haitian immigrants, and Muslims, to name a few. Fraudulent subprime mortgage brokers who were immigrants made loans to homeowners who came from the home country and spoke the same language. Cloaked in new skins, con men appeal to an individuals’ weak spot: a desperate shortage of money before payday, a need to earn more than the yield on their certificate of deposit, a need for cash to pay medical bills. But awareness of these disguises can prevent fraud by helping individuals recognize and steer clear of it. Details: Chestnut Hill, MA: Financial Security Project at Boston College, 2012. 12p. Source: Internet Resource: Accessed March 9, 2012 at http://fsp.bc.edu/wp-content/uploads/2012/02/Scams-RFTF.pdf Year: 2012 Country: United States URL: http://fsp.bc.edu/wp-content/uploads/2012/02/Scams-RFTF.pdf Shelf Number: 124411 Keywords: Elderly VictimsFinancial FraudInsurance Fraud |
Author: Cummings, Adam Title: Insider Threat Study: Illicit Cyber Activity Involving Fraud in the U.S. Financial Services Sector Summary: This report describes a new insider threat study funded by the U.S. Department of Homeland Security (DHS) Science and Technology Directorate (S&T) in collaboration with the U.S. Secret Service (USSS) and the CERT Insider Threat Center, part of Carnegie Mellon University's Software Engineering Institute. Researchers extracted technical and behavioral patterns from 67 insider and 13 external fraud cases; all 80 cases occurred between 2005 and the present. Using this information, we developed insights and risk indicators of malicious insider activity within the banking and finance sector. This information is intended to help private industry, government, and law enforcement more effectively prevent, deter, detect, investigate, and manage insider threats in this sector. Details: Pittsburgh, PA: Carnegie Mellon University, Software Engineering Institute, 2012. 76p. Source: Internet Resource: Accessed September 27, 2012 at: http://www.sei.cmu.edu/library/abstracts/reports/12sr004.cfm Year: 2012 Country: United States URL: http://www.sei.cmu.edu/library/abstracts/reports/12sr004.cfm Shelf Number: 126470 Keywords: CybercrimeFinancial FraudInsider Threats |
Author: Randazzo, Marisa Reddy Title: Insider Threat Study: Illicit Cyber Activity in the Banking and Finance Sector Summary: Current and former employees, contractors, and other organizational “insiders” pose a substantial threat by virtue of their knowledge of and access to their employers’ systems and/or databases and their ability to bypass existing physical and electronic security measures through legitimate means. Previous efforts to study insider incidents have focused on convenience samples and narrow areas of industry and have not examined the incidents from both behavioral and technical perspectives simultaneously. These gaps in the literature have made it difficult for organizations to develop a comprehensive understanding of the insider threat and address the issue from an approach that draws on human resources, corporate security, and information security perspectives. The Secret Service National Threat Assessment Center and the CERT Coordination Center of Carnegie Mellon University’s Software Engineering Institute joined efforts to conduct a unique study of insider incidents, the Insider Threat Study (ITS), examining actual cases identified through public reporting or as a computer fraud case investigated by the Secret Service. Each case was analyzed from a behavioral and a technical perspective to identify behaviors and communications in which the insiders engaged—both online and offline—prior to and including the insiders’ harmful activities. Section 1 of this report presents an overview of the ITS, including its background, scope, and study methods. Section 2 reports the findings and implications specific to research conducted on insider threat cases in the banking and finance sector. Details: Pittsburgh, PA: Carnegie Mellon University, Software Engineering Institute, 2005. 36p. Source: Internet Resource: Accessed October 7, 2012 at http://www.sei.cmu.edu/reports/04tr021.pdf Year: 2005 Country: United States URL: http://www.sei.cmu.edu/reports/04tr021.pdf Shelf Number: 126569 Keywords: Corporate CrimeCybercrimeFinancial FraudInsider ThreatsRisk Management |
Author: U.S. Government Accountability Office Title: Elder Justice: National Strategy Needed to Effectively Combat Elder Financial Exploitation Summary: Elder financial exploitation is the illegal or improper use of an older adult’s funds or property. It has been described as an epidemic with society-wide repercussions. While combating elder financial exploitation is largely the responsibility of state and local social service, criminal justice, and consumer protection agencies, the federal government has a role to play in this area as well. GAO was asked to review issues related to elder financial exploitation. This report describes the challenges states face in (1) preventing and (2) responding to elder financial exploitation, as well as the actions some federal agencies have taken to help states address these challenges. To obtain this information, GAO interviewed state and local social service, criminal justice, and consumer protection officials in California, Illinois, New York, and Pennsylvania—states with large elderly populations; officials in seven federal agencies; and various elder abuse experts. GAO also analyzed federal strategic plans and other documents and reviewed relevant research, federal laws and regulations, and state laws. What GAO Recommends Federal agencies should develop a written national strategy addressing challenges GAO identified, facilitate case investigation and prosecution, and improve data, among other things. The Consumer Financial Protection Bureau and the Department of Health and Human Services supported GAO’s recommendations. FTC did not believe it is necessary to examine the feasibility of requiring victim’s age in complaints. GAO maintains the importance of its recommendation. Details: Washington, DC: GAO, 2012. 80p. Source: Internet Resource: GAO-13-110: Accessed November 20, 2012 at: http://www.gao.gov/assets/660/650074.pdf Year: 2012 Country: United States URL: http://www.gao.gov/assets/660/650074.pdf Shelf Number: 126945 Keywords: Confidence GameCrimes Against the ElderlyElder AbuseElderly VictimsFinancial CrimesFinancial Fraud |
Author: Cohen, Mark A. Title: Willingness to Pay to Reduce White Collar and Corporate Crime Summary: Consumer protection and financial regulatory agencies such as the Federal Trade Commission (FTC), the Securities and Exchange Commission (SEC), and the Consumer Financial Protection Bureau (CFPB) regulate various types of consumer, investor and financial frauds. Whether required or not, rulemaking proceedings oftentimes include some form of cost-benefit analysis. Thus, the benefits of proposed regulations - whether fully quantified or not - are an increasingly important component of rulemaking decisions. Anecdotal evidence suggests that the impact on victims in some cases include significant time and financial hardships and even pain, suffering and reduced quality of life. Further, the existence of these offenses causes non-victims to take costly precautionary behavior and might even inhibit legitimate business activities. Yet, little is known about the true costs of consumer and financial crimes other than the out-of-pocket monetary losses incurred by victims. To the extent society wishes to optimally deter such crimes, without better data on nonmonetary costs, any cost-benefit analyses of criminal justice or prevention programs designed to reduce these crimes will inevitably underestimate program benefits. This paper provides an initial framework and empirical estimates of the willingness-to-pay to reduce four types of white collar and corporate offenses - consumer fraud, financial fraud, corporate crime and corporate financial crime. Utilizing a contingent valuation survey approached that has been used to estimate the cost of street crimes, the average willingness to pay for a 10% reduction in each of these four offenses is estimated to range between $70 and $75 per household. In the case of consumer fraud and financial fraud - where estimates of prevalence are available, this translates into a willingness to pay of $2,700 per consumer fraud and $21,000 for financial fraud. In contrast, the out-of-pocket costs to victims of consumer fraud have been estimated to average about $100, and about $200 to $250 for various types of financial frauds. These figures also compare favorably to the willingness to pay for a reduced household burglary of $18,000. Details: Nashville, TN: Vanderbilt University, 2014. 27p. Source: Internet Resource: Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - Law School; Resources for the Future: Accessed September 12, 2014 at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2486220 Year: 2014 Country: United States URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2486220 Shelf Number: 133299 Keywords: Consumer Fraud (U.S.)Consumer ProtectionCorporate CrimeFinancial CrimesFinancial FraudWhite-Collar Crime |
Author: Global Financial Integrity Title: South Africa: Potential Revenue Losses Associated with Trade Misinvoicing Summary: Executive Summary This report analyzes South Africa's bilateral trade statistics for 2010 - 2014 (the most recent years for which sufficient data are available) which are published by the United Nations (Comtrade). The detailed breakdown of bilateral South African trade flows allowed for the computation of trade value gaps that are the basis for trade misinvoicing estimates. Import gaps represent the difference between the value of goods South Africa reports having imported from its partner countries and the corresponding export reports by South Africa's trade partners. Export gaps represent the difference in value between what South Africa reports as having exported and what its partners report as imported. Analysis of trade misinvoicing in South Africa from 2010-2014 shows that the potential loss of revenue to the government is $7.4 billion annually or, a total of $37 billion during the period. The average portion of revenue lost due to import misinvoicing each year is $4.8 billion. This amount can be further divided into its component parts: uncollected VAT tax ($2.1 billion), customs duties ($596 million), and corporate income tax ($2.1 billion). Lost revenue due to misinvoiced exports was $2.6 billion on average each year which is related to lower than expected corporate income and royalties. The study also examined trade data from the South African Revenue Service in order to conduct an in-depth examination of import under-invoicing. This process analyzed approximately 7.4 million trade transactions which included more than 8,200 commodity types for the period 2010-2015. A key conclusion is that goods categories with a preponderance of under-invoicing tend to be associated with higher effective tax rates than other classes of imports. The data show that the top five categories for potential revenue loss related to import under-invoicing are machinery, knitted apparel, electrical machinery, non-knitted apparel, and vehicles. Three of these commodities (machinery, electrical machinery, and vehicles) are among the most commonly imported goods into South Africa. Trade misinvoicing occurs in four ways: under-invoicing of imports or exports, and over-invoicing of imports or exports. In the case of import under-invoicing fewer VAT taxes and customs duties are collected due to the lower valuation of goods. When import over-invoicing occurs (i.e. when companies pay more than would normally be expected for a product), corporate revenues are lower and therefore less income tax is paid. In export under-invoicing the exporting company collects less revenue than would be anticipated and therefore reports lower income. Thus, it pays less income tax. Corporate royalties are also lower. Total misinvoicing gaps related to imports can be broken down by under-invoicing ($16.3 billion) and over-invoicing ($9.8 billion). It should be noted that these figures represent the estimated value of the gap between what was reported by South Africa and its trading partners. The loss in government revenue is a subset of these amounts and is based on VAT tax rates (12.9 percent), 2 Global Financial Integrity customs duties (3.7 percent), corporate income taxes (21.7 percent), and royalties (1 percent) which are then applied to the value gap. Export misinvoicing gaps were $11.6 billion for export under-invoicing and $8.6 billion for export over-invoicing. Lost corporate income taxes and royalties are then applied to export under-invoicing amounts to calculate lost government revenue. The practice of trade misinvoicing has become normalized in many categories of international trade. It is a major contributor to poverty, inequality, and insecurity in emerging market and developing economies. The social cost attendant to trade misinvoicing undermines sustainable growth in living standards and exacerbates inequities and social divisions, issues which are critical in South Africa today. Details: Washington, DC: Global Financial Integrity, 2018. 30p. Source: Internet Resource: Accessed February 8. 2019 at: https://www.gfintegrity.org/report/south-africa-potential-revenue-losses-associated-with-trade-misinvoicing/ Year: 2018 Country: South Africa URL: https://www.gfintegrity.org/wp-content/uploads/2018/11/South-Africa-Report-2018.pdf Shelf Number: 154289 Keywords: Custom DutiesFinancial CrimesFinancial FraudRevenue LossesSouth AfricaTax FraudTrade MisinvoicingUnderinvoicing |