Chapter 5 Flashcards
sabotage
an intentional act where the intent is to destroy a system or some of its components
cookie
a text file created by a web site and stored on a visitors hard drive. cookies store information about who the user is and what the user has done on the site
fraud
any and all means a person uses to gain an unfair advantage over another person
white-collar criminals
typically, business people who commit fraud. white-collar criminals usually resort to trickery or cunning, and their crimes usually involve a violation of trust or confidence.
curruption
dishonest conduct by those in power which often involves actions that are illegitimate, immoral, or incompatible with ethical standards. Examples include bribery and bid rigging
investment fraud
misrepresenting or leaving out facts in order to promote an investment that promises fantastic profits with little or no risk. Examples include Ponzi schemes and securities fraud
misappropriation of assets
theft of company assets by employees
fraudulent financial reporting
intentional or reckless conduct, whether by act or omission, that results in materially misleading financial stmts
pressure
a persons incentive or motivation for committing fraud
opportunity
the condition or situation that allows a person or organization to commit and conceal a dishonest act and convert it to personal gain
lapping
concealing the theft of cash by means of a series of delays in posting collections to accounts receivables
check kiting
creating cash using the lag between the time a check is deposited and the time it clears the bank
rationalization
the excuse that fraud perpetrators use to justify their illegal behavio
computer fraud
any type of fraud that requires computer technology to perpetrate
