Financial fraud has become a lot easier in recent years due to the digital age. With so much access to a variety of information, fraud is a bigger problem than ever before. From corporate crime to identity theft, there are several ways people can embezzle money. Some of the best criminals search your social media sites, phish for information through emails, and monitor your computer activity through spyware. Smartphone users are victimized three times more with the advent of the internet on mobile devices. Here today we are going to take a brief look over financial fraud in the digital age and its effects on the global economy:
Bad accountants have found new ways to utilize online banking for scams. A recent study by the New England College (NEC) states that three out of five criminals committing fraud are employees of the victim organization.
Students studying for a master’s in online accounting need to know the red flags in order to avoid being scammed or blamed for a team member’s scheme. According to NEC, payroll fraud occurs in a quarter of all companies. It also occurs more than twice as much with companies employing less than 100 people.
When working as an accountant, the numbers need to be perfect. If something isn’t adding up, it could be a sign of malpractice.
Even worse, there are cybercrime gangs that phish for unsuspecting victims to aid them in money laundering. Many scams stem from a work-from-home offer, laundering money through the accounts of employees to avoid discovery. Several CEOs are the targets of these gangs. When they receive targeted emails, cybercrime gangs phish for information from these wealthy executives. Often times, they discover valuable information that helps them stealthily grow their funds from the corporation’s account.
Financial fraud has been around for ages. It’s part of life, stemmed by greed. It’s amazing how far some people will go to earn some extra cash. The risks are endless, but some find it just too tempting to avoid.
The global economy is affected in major ways due to this fraudulent behavior. Each year, the globe loses $100 billion to corporate thieves who take money for their own pleasure. Accountants need to beware of the incessant scams attaching over a fourth of American corporations. To catch these scams, regular audits are advised.
The digital age has definitely made an impact on the lives of every global citizen. It’s impacting the way we measure our finances, how we work, where we get our information, and even aiding us in simple navigation and travel plans. With such a wide breadth of information at the touch of a button, it’s easy to see why fraud has become a huge global issue. With all-new advancements, there are setbacks. It’s important to stay alert to avoid a scam hitting close to home.
Check out this informative infographic on most common types of fraud for more information: