As is the case for every sector, retail sector is subject to the risks and fraud in the procurement cycle. This makes up the second highest occurring type of economic crime (PwC, 2014., p 38). Coenen (2008 p. 86) describes procurement fraud as the manipulation of the procurement cycle with the aim of gaining an unfair advantage in the process of bidding and proposal. This process is dominant in the retail sector as the selection of vendors and assessment of the relationship is a process which is central to the functioning of a retail enterprise. The reluctance to admit to violation of fiduciary responsibilities to employers by employees makes it difficult to admit this kind of fraud and especially because it normally occurs in an external setting
It is imperative for establishments to have robust controls in processes to avoid operational frauds resulting from employee embezzlement. Albrecht et al. (2012) defines this kind of fraud as a result of employee deception by taking into their possession company assets. Cases of employee embezzlement (PwC India, 2012) include revenue leakage resulting from underpricing of products without bar code / pilferage of such products: Bar code frauds such as forged bar code labels; siphoning of discount coupons, promotional items by employees; Deliberate un-optimized inventories maintained at stores; Expense fraud resulting from fraudulent cash register disbursements; Deliberate inaccuracy in supervision and administration at retail outlets, departmental stores and supermarkets and; Tampering of IT systems for procurement, warehousing, inventory management or sales; more so considering the vast distribution network that retail companies operate in. These are normally direct ways company’s resources get into the custody of individuals without third party
(2011 p.11) describes customer fraud occurring either when customers do not pay for goods purchased or get nothing in return. Example of such fraud is what PwC India report refers to as Return Fraud. This kind of fraud is more common with retail sector and companies should pay special attention to high shrinkage rate, dramatic increase in number of returns, return policy not being enforced and increasing number of markdowns due to returns. Return fraud may take various forms such as the return of stolen merchandise; the subsequent resale of stolen merchandise in grey markets; Return of used merchandise, outside of return policy; Product exchanges, that is when a consumer comes to exchange a product which has not been purchased from the store. This is especially visible for high-value merchandise such as apparel; return of merchandise using counterfeit receipts. It is essential to look at such fraud-related schemes. Another of such retail fraud scheme is online retail and credit card fraud directly linked with identity theft. E-commerce, online retail sales have had significant increase over the years accounting for almost one third of the top 50 retail companies (Deloitte, 2014). As the name implies identity theft occurs when another person takes up the identity of another to purchase goods or engage in criminal activity or perpetrate fraud (Albrecht et al., 2011 p- 531). With the high level of usage of credit card transactions, retail companies faces the
This investigation conveyed that equine DNA or horse meat was found in beef burgers sold in a company well known Tesco. It was manufactured as displayed above by Silvercrest plant in Monaghan. This 29% of horse DNA or equine DNA should not be in this product. The investigation continued some of the burgers were Tesco’s own brand everyday value beef burgers. There was 8 burgers in this packet. Horse DNA was found in beef burgers in the UK and Irish supermarkets. This horse meat controversy lead to the Tesco supermarket removing all frozen burgers for sale to consumers from its shop shelves quite quickly and immediately whether they had been found to contain horse meat or not. The group technical director of Tesco made it clear that the presence
The Hollate Manufacturing case provided by Anti-Fraud Collaboration has well illustrated how several common issues in an organization contributed to the fraud’s occurrence. These issues can be categorized into two major groups: ethical culture (internal aspect) and internal control system (external aspect). By taking effective actions to enhance these two aspects, an organization can protect itself against the largest frauds, which result in financial and reputational damage.
This case comes in market in May 8, 2002. This case is based on mail fraud in Florida District court. Kevin Gray is a businessman.
The Impact of Online Identity Theft on Consumers and Organizations Internet fraud has become a major issue due to the ever increasing population of internet users, because the internet is such an easy solution to fast sufficient services readily available for busy lives that’s is why most of us are now dependant on the internet in some shape or form and each time we use the internet we input data that are related to use from our name, address and even bank details with the assurance that the site is safe and trustworthy, but this is not always the case because the security system implemented like all things in this world has weaknesses.
Bilski, J. (2009, 17 July). Workers gone wild: 7 outrageous cases of employee fraud. CFO Daily News. Retrieved from http://www.cfodailynews.com
Today, worldwide, there are several thousands of crimes being committed. Some don’t necessarily require a lethal weapon but are associated with various types of sophisticated fraud, this also known as a white-collar crime. These crimes involve a few different methods that take place within a business setting. While ethical business practices add money to the bottom line, unethical practices are ultimately leading to business failure and impacting the U.S. financially.
About 15 million United States residents have their identities and information used fraudulently each year. Along the use of their identities, they also had a combined financial loss totaling up to almost $50 billion. Major companies such as Apple, Verizon, Target, Sony, and many more have been victims of consumer information hacking. In each of the cases, millions of consumers’ personal information has been breached. In the article “Home Depot 's 56 Million Card Breach Bigger Than Target 's” on September 18, 2014, 56 million cards were breached due to cyber attackers. Before the Home Depot attack, Target had 40 million cards breached. Company’s information is constantly being breached and the consumers’ are the ones who end up having to pay the price. If a company cannot protect the information it takes, then it should not collect the information.
On March 30, 2018 at approximately 1830 hours, I made contact with Marion and gathered evidence for the fraudulent return that was conducted on February 27, 2018 at approximately 1729 hours. Marion advised the H/F entered the Walmart store located at 8701 US HWY 19 Port Richey, FL on February 27, 2018 at approximately 1919 hours. He advised she did not enter the store with any merchandise.
“Shoplifting, worker theft cost retailers $32 billion last year,” is the title to a Fortune 500 article written by Phil Whaba. The name of the article sums up the immense problem facing retailers in the United States. Companies are not just losing millions of dollars in merchandise to theft, they are in fact losing billions of dollars to theft. To protect themselves, many retailers and companies incorporate security to help protect their goods and mitigate the threat of thefts. While employing security to solve this issue can be effective, it also brings with it implications which can lead to lawsuits and negative publicity for the company. Some of the implications include additional training, policies and procedures for officers, as well as the additional consequences of potential injury to staff and perpetrators, which can both have far reaching legal weight attached to each issue.
Embezzlement has become more common in the last few years. No one knows for sure whether the problem has increased due to the bad economy, less ethical behavior among employees or other attitudes toward the government or businesses in general. Charleston, South Carolina is no exception to the rising number of fraud cases. Every year more cases are being discovered and exposed to the public. One such case is the embezzlement of cash from a county owned garage. The embezzlement case of Martina Moultrie Richardson will be discussed as well as types of evidence desired in this case, methods/procedures for gathering the evidence and procedures for cataloging and maintaining the evidence.
These include functions in real estate (METRO properties), account processing (METRO Group Account processing, IT (METRO Systems), logistics (METRO Logistics), travel agency (METRO Group travel), purchasing (METRO Group Buying HK). insurance brokerage (METRO Group Insurance Broker), advertisement (METRO Group advertising) and facility management (METRO Group facility management). The wide ranging functions, valuable properties that the Group has put it at a high degree of risk and exposure to Fraud. Numerous individual occupying different positions and series of complicated transaction makes the Group a suitable case to study as various aspects of economics, management, law, sociology and organizational theory come into play to understand the processes for an effective design of fraud deterring schemes (Friederichs, 2010 p. 36). METRO Group diverse portfolio can provide a concrete, in-depth understanding of the dynamics and realities of a retail and consumers fraud cases but still applicable to other
Ulinski, Michael. "AN ANALYSIS OF SMALL COMPANY FRAUDS AND." American Society of Behavioral Society. Dept of Business, Pace University. 05 Feb. 2008.
Saleh, Z. (2013). The impact of identity theft on perceived. Journal of Internet Banking & Commerce, 18(2), 1-11. Retrieved from http://www.arraydev.com/commerce/jibc/
Financial: A corrupt company will lose customer respect and trust, requiring that the company’s management spend valuable time and resources to keep their clientele loyal and demonstrate that they still operate a viable business. The public, overa...
Why is the United States not up to date with Europe in issuing safer credit and debit card transactions? Europe has had the chip and pin credit and debit cards since the year 2004. These new security chip cards started to become a trend in the year 2014 in the United States. The United States has over ten million credit card terminals so it was hard to get such a large market to adopt to a new type of technology. There are three sectors of the market that had to work together which were the retailers, big financial institutions, and then the card associations like Visa or MasterCard. Retailers and credit card companies could never decide who would pay the transaction fees so there was another conflict that slowed the process of implementing