10AIS Chapter 5 Computer Fraud & Abuse 3-28-10

10AIS Chapter 5 Computer Fraud & Abuse 3-28-10 - Fraud...

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Computer Fraud & Security Chapter 5 Fraud & Computer Fraud The definition of fraud has nothing to do with the technology used to commit it. Fraud is fraud. FRAUD Fraud is any and all means a person uses to gain an unfair advantage over another person. Legally, to be considered fraudulent, an act must involve: A false statement (oral or in writing) About a material fact Intent to deceive – “Scienter” A victim relies on the statement And suffers injury or loss as a result The definition is the same whether it is a criminal or civil fraud case. The only difference is the burden of proof required. Criminal case: Beyond a reasonable doubt. Civil case: Preponderance of the evidence OR clear and convincing evidence. Classic Fraud Techniques What is LAPPING? Cash collections scheme that allows the perpetrator to, at least temporarily, steal company money. Usually done by a cash collections clerk.