There are many definition of frauds, but there are few in which it the clear meaning of it was stated. As defined by Merriam Webster dictionary (n.d.), fraud is an intentional perversion of truth to induce another to part with something of value or to surrender a legal right. It always involves deception, confidence and trickery. It is a false representation of information to take advantage over an individual or an entity and misleading assertions.
According to Albrecht (2004), fraud is deception that includes elements namely, a representation about a material point which is false and intentionally or recklessly so, which is believed and acted upon by the victim to the victim’s damage. Not all false statements are considered fraud. For example, if an accountant accidentally input incorrect data on a financial statement, it is not fraudulent because there was no intention of taking advantage of gaining advantage through false pretense but if he purposely enters the incorrect data it is fraud.
One of good example of fraud in the country is the issue regarding the health insurance company. The Philippine Health Insurance Corp. or known as PhilHealth is known as an agency owned by the government in which it ensures to pay for the indigent patients who cannot afford the medical attention they need through the tax and salary deduction from the employees of a company.
In the year 2011, the said company confirmed the allegations that some of the private hospitals and doctors all over the country swindled the state health insurer. According to Espejo (2011), the vice president of Philhealth stated that since 1990’s, the company is losing billions of pesos due to frauds. There was an instance wherein they conducted an inspection in a hospi...
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... an individual to commit the act.
The second element in the triangle is the perceived opportunity. It refers to power of an individual to commit the crime. The offender has access over the company’s information in which he/she can exploit the assets of the company. They take advantage of the knowledge they have of the company’s operation to act upon their schemes such as solving their financial problem, to conceal drug addiction and most likely to gain more assets.
The last but not the least is rationalization. According to the website of Association of Certified Fraud Examiners (n.d.), many of the fraudsters don’t view themselves as criminals, they tends to see themselves as victims of unjust treatment of the company so they abuse their position.
Works Cited
merriam webster dictionary allbusiness.com newsbreak.ph fraud examination and prevention
wisegeek.com
Fraud is usually comprehended as deceptive nature calculated for advantage. And usually this kind of people might be called a fraud. According to the U.S. legal system, fraud is a particular offense with specific features. Fraud must be proved by showing that the defendant’s actions involved five separate elements: 1. A false statement of a material fact; 2. Knowledge on the part of the defendant that the statement is untrue; 3. Intent on the part of the defendant to deceive the alleged victim; 4. Justifiable reliance by the alleged victim on the statement; 5. Injury to the alleged victim as a
Taking a look at Donald Cressey’s hypotheses which is now known as the fraud triangle depicts the certain criteria for the mind frame of the fraudster. The fraud triangle is a theory that consists of perceived pressures, perceived opportunity, and rationalization. It gives us the different pressures placed on individuals that would make them consider “cooking the books.” It also demonstrates where the possible opportunity lies so that we may take precautions to eliminate the opportunity. Last, it demonstrates how a fraudster rationalizes with themselves to make committing the fraud okay. Donald Cressey believes all three elements must be present for fraud to occur. Upper management is usually the focus of financial statement fraud because financial statements are done at the management level. So in this case financial statement fraud was committed by the CEO Gregory Podlucky
Perjury is a sin grouped along with the fraudulent circle in Dante’s Inferno. The violation of an oath by swearing to what is untrue is a crime punishable in all cultures. This sin most definitely qualifies as fraudulent for one is passing something false off as true. In modern America this is conceived as more of a sin of treachery. The reason it would be considered as treacherous rather than fraudulent because in the constitution
Securities fraud, also known as investor fraud or investment fraud, is a deceiving way of manipulation in the stock markets, which persuades potential investors to purchase or sale due to false information, usually resulting in loss of investments. Securities fraud may also involve direct theft from those investing through embezzlement, the theft or misuse of funds placed in one’s trust (Google), or stock manipulation, which is a premeditated attempt to meddle with...
“Ask why.” This was the slogan for the company Enron—a company riddled with corporate crime. The documentary Enron: The Smartest Guys in the Room describes the corrupt practices of this once seventh-largest company in the United States. Examining this film allowed me to “ask why” this company engaged in these criminal practices, and why corporate crime exists, in general. Currently, there is no real theory attempting to explain white collar crime, so instead, in this essay I will be looking at 5 different factors that I believe are helpful for understanding corporate crime including: corporate culture, the drive for profit, the structure of organizations, socialization and learning, as well as a motivated and persuasive leader.
Fraud—“Any intentional deception designed to unlawfully deprive the Air Force of something of value or to secure from the Air Force for an individual a benefit, privilege, allowance, or consideration to which he or she is not entitled.
Fraudulent means to obtain something by means of deception. Usually, it is known by its shortened form, fraud. Different types of fraud account for a notable number of the crimes committed in the United States. Fraud is always evolving, keeping up with changing technology and attempting to stay ahead of law enforcement. Most likely, fraud will not go away. It is important to note that the best way to combat fraud is to be knowledgeable about fraud. The following paragraphs outline several typed of fraud and the people affected by these crimes.
Healthcare services have been on the rise for over 10 years now. According to a 2012 consumer alert, the industry provided $2.26 trillion in payments for more than four billion health insurance benefit claims in the year 2011(Fraud in Health Care). The bulk of the claims and the mainstream of fraud and abuse stem from the Medicare system professionals, who are knowledgeable about the process and persuade new clients into handing over their pertinent information in hopes of deception and illegitimate claims. Multiple and double billing, fraudulent prescriptions, are some of the major flaws in this organization that has made the healthcare services industry curdle. (AGHAEGBUNA, 2011) This is a non-violet crime and is often committed by very educated people including business people, hospital, doctors, and administrators.
In my essay I am going to elaborate about the types of frauds, and my thesis statement here lies as “Types of frauds and committed by whom in health care system? Who can be suspected for this act and what can we do for future to remove these fraudulent?”
Deception is the intentional use of false representations by an individual through words or conduct; in order to dishonestly obtain an unfair advantage for self or another by inducing the victim to transfer a benefit or inflict a detriment upon the victim. The intention to deceive is the supportive fault element.
Charity fraud is the intentional act of deception committed by an individual or group of individuals who ask for contributions in the name of a worthy cause. Perpetrators of charity fraud will take advantage of a tragic event to appeal to the compassion and empathy of donors. They make material misrepresentations about their charity in order to gain the donor’s confidence and trust, and then use high pressure methods to convince them to donate.
Appelbaum, 2006 suggests some theories of how individuals rationalize their crimes into different categories. The first, the equity theory, whereby they feel the company owes them based on their perception of an unequal relationship between work or the effort performed versus what value the organization recognizes. Second, the work climate dimension where company policies and attitudes convey an air of inevitability that employee crime will happen and making allowances for it is part of the cost of doing business. Lastly, having a low level of cognitive moral development, with those individuals only attaining pre-conventional or conventional moral values; where the new ‘Golden Rule’ is what’s in it for me (Appelbaum, 2006).
Misrepresentation – giving a false statement to the other party with the intentions to benefit or to exploit the other party than the law can end the contract in that case.
Fraud and white-collar crime are common forms of crimes that people commit in various aspects and positions in the corporate world. Fraud and white-collar crimes have similar meaning as they refer to the non-violent crimes that people commit with the basic objective of gaining money using illegal means. The cases of white-collar crimes have been increasing exponentially in the 21st century due to the advent of technology because fraudsters apply technological tools in cheating, swindling, embezzling, and defrauding people or organizations. White-collar crime is a complex issue in society because its occurrence is dependent on many factors such as organizational structure, organization culture, and personality traits. Thus, the literature review examines how organizational structure, organizational culture, and personality traits contribute to the occurrence of white-collar crimes.
"What is “online fraud”?" National Crime Victim Law Institute. Lewis & Clark, 27 July 2010. Web. 24 Jan. 2014.