Fraud: America's Growth Industry

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Authors

Postelnic, Jacqueline Marie

Issue Date

2010

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Thesis

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en_US

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Abstract

In today's world, fraud is a continually growing problem that shows no sign of decreasing. Every year, more and more different fraud schemes are revealed. These schemes continue to grow not only in their complexity, but also in the amount of money that is lost. Everyone from giant companies to mom-and-pop stores and from CEO's to a stay-at-home moms can become victims of fraud. There are numerous and various types of schemes in which fraud can take form, but ultimately it is all the same. It is the act of a person, or group of people, intentionally stealing money from others. To be able to combat fraud, people must be equipped with knowledge. It is essential that everyone have a basic understanding of what fraud is and how it occurs. In this research paper, fraud will be thoroughly discussed along with the most useful method to uncover it: forensic accounting. This paper will provide a general overview of what fraud is along with alarming statistics of who fraud affects and how it affects them. It will go on to detail the red flags of fraud along with methods to prevent fraud, and also shed light on how fraud is detected after the fact when it is not able to be stopped completely. Finally, a case study of Bernard Madoff's Ponzi scheme, which is not only extremely recent, but is also said to be the largest ever in history, will be examined. This case study will tie all the parts of the paper together, clearly showing why it is necessary in today' s environment for people to be aware of their surroundings to protect themselves from fraud and its detrimental effects.

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116 p.

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U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.

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