Fraud and Dishonesty in Business
Produced by Group 8 (Michael E. Defazio, Jonathan A. Maxwell, Matt
McClinch, Korey S. Mercier, and Scott Willie), CS 3604, Fall 1997.
Definitions via WWWebsters Dictionary
- a : intentional perversion of truth in order to induce another to part
with something of value or to surrender a legal right
b : an act of deceiving or misrepresenting : TRICK
- a : a person who is not what he or she pretends to be : IMPOSTOR; also
: one who defrauds : CHEAT
b: one that is not what it seems or is represented to be
- fraud committed using a means of electronic communication (as a telephone)
- lack of honesty or integrity : disposition to defraud or deceive
- a dishonest act
Ethical Values in the Business World
Consider four distinct situations in defining ethical values in the
- Company vs. Society: The marketing department of most companies
in the United States devotes much of its time to developing new ways to
lie to the American public. Why are these "white lies" considered
acceptable when they are fraudulent and misleading to the whole of society?
- Company vs. Individuals: Is it ethical for companies to "sniff"
their employees personal email? What if they are under suspicion of involvement
in crimes or otherwise fraudulent activity against the company or other
employees? Is it an individual's obligation to "blow the whistle"
on someone else if they discover evidence of their having committed a fraud?
- Company vs. Company: Can companies be held responsible for "accidental"
loopholes in their joint contracts? Should one company be legally allowed
to withhold information from another? What if that information was somehow
misleading or harmful in nature?
- Company vs. Itself: There are several ways in which a company
can leave itself open to attacks involving fraud and deception. Should
companies allow encrypted information within its network, which may very
well prevent the them from taking an active role discovering such attacks?
Should employees be given the responsibility of handling their own file
security? Who's responsibility is it to protect sensitive data against
Legal Implications of Computer Fraud
Federal Laws Governing Computer Fraud:
Example Cases of Fraud:
There exists too many legal cases regarding fraud to mention here. A
few examples will follow, as well as a web site whose main focus is getting
information about incidents of fraud out to the public.
Protection and Detection of Fraud
Computer Related Prevention:
- Activity log from firewalls, servers, etc
- audit programs can determine suspicious behavior
- Whistle blowing
- Customer notification
- Accidental discovery
- ... and embarrassing hacked
Copyright © 1997 Korey S. Mercier, Biz
Net Technologies. All rights reserved.
Edited and updated by J.A.N. Lee.
Last modified on 99/11/04.