White Collar Crime


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

White Collar Crime

  1. 1. White Collar Crime Legislation on Security Hana Gawlasov á 19 October 2005
  2. 2. Content <ul><ul><li>T ypical white collar offences </li></ul></ul><ul><ul><ul><li>C omputer and I nternet fraud </li></ul></ul></ul><ul><ul><ul><li>Economic and financial fraud </li></ul></ul></ul><ul><ul><li>Security </li></ul></ul><ul><ul><ul><li>Regulated businesses </li></ul></ul></ul><ul><ul><ul><li>Unregulated businesses </li></ul></ul></ul><ul><ul><li>Recommendations </li></ul></ul>
  3. 3. White collar crimes - o verview <ul><ul><li>bankruptcy fraud </li></ul></ul><ul><ul><li>bribery </li></ul></ul><ul><ul><li>computer and Internet fraud </li></ul></ul><ul><ul><li>credit card fraud </li></ul></ul><ul><ul><li>counterfeiting </li></ul></ul>
  4. 4. White collar crimes - o verview ( cont .) <ul><ul><li>economic espionage and trade secret theft </li></ul></ul><ul><ul><li>embezzlement </li></ul></ul><ul><ul><li>financial fraud </li></ul></ul><ul><ul><li>insider trading </li></ul></ul><ul><ul><li>insurance fraud </li></ul></ul>
  5. 5. White collar crimes - overview (cont.) <ul><ul><li>kickbacks </li></ul></ul><ul><ul><li>money laundering </li></ul></ul><ul><ul><li>securities fraud </li></ul></ul><ul><ul><li>tax evasion </li></ul></ul><ul><ul><li>telemarketing fraud </li></ul></ul>
  6. 6. Computer and Internet fraud <ul><li>Damaging or misusing data carrier records </li></ul><ul><ul><li>intervention in a bank’s client database </li></ul></ul><ul><ul><li>destroying the content of a hard disc </li></ul></ul><ul><ul><li>copying client lists and transmitting them to a competitor </li></ul></ul>
  7. 7. Computer and Internet fraud (cont.) <ul><li>Misrepresentation of data relating to economic results and assets </li></ul><ul><ul><li>modification of accounting entries in accounting software </li></ul></ul><ul><ul><li>Infringement of copyright </li></ul></ul><ul><ul><li>unauthorised copying or distribution of software (software piracy) </li></ul></ul>
  8. 8. Computer and Internet fraud (cont.) <ul><li>Unauthorised disposal of personal data </li></ul><ul><ul><li>unauthorised copying of bank statement data from a bank’s printer server </li></ul></ul><ul><li>Violating the privacy of transmitted messages </li></ul><ul><ul><li>monitoring messages transmitted between securities dealer and the stock exchange </li></ul></ul><ul><ul><li>violation of e-mail privacy </li></ul></ul>
  9. 9. Computer and Internet fraud (cont.) <ul><li>Unauthorised use of another person’s property </li></ul><ul><ul><li>theft of computer time </li></ul></ul><ul><ul><li>Fraudulent activity </li></ul></ul><ul><ul><li>usually banking fraud: unauthorised change to transfer order, bank account balance, parameters of the bank account, general ledger </li></ul></ul><ul><ul><li>“ taxation” of large transactions </li></ul></ul>
  10. 10. Computer and Internet fraud (cont.) <ul><li>Breach of duty to manage another person’s property </li></ul><ul><ul><li>by breaching a duty, imposed by law or undertaken contractually, to manage another person’s property </li></ul></ul><ul><ul><li>use of unchecked data carriers or opening suspicious e-mail attachments, if resulting in substantial damage </li></ul></ul>
  11. 11. How to achieve security? <ul><ul><li>regulated businesses </li></ul></ul><ul><ul><li>unregulated businesses </li></ul></ul>
  12. 12. Regulated businesses - i.e. banks <ul><ul><li>Internal control system </li></ul></ul><ul><ul><li>Risk management (operational risk, business continuity plan) </li></ul></ul><ul><ul><li>Internal audit </li></ul></ul><ul><ul><li>External audit </li></ul></ul>
  13. 13. Regulated businesses - s ecurity <ul><ul><li>Risk management </li></ul></ul><ul><ul><ul><li>identification of risks </li></ul></ul></ul><ul><ul><ul><li>measurement/evaluation of risk s </li></ul></ul></ul><ul><ul><ul><li>monitoring risks </li></ul></ul></ul><ul><ul><ul><li>taking action to limit risks, where appropriate </li></ul></ul></ul><ul><ul><ul><li>verifying corrective action </li></ul></ul></ul>
  14. 14. Regulated businesses - principles of i nternal control systems <ul><li>S etting up adequate control mechanisms for processes </li></ul><ul><ul><ul><li>employees performing the functions </li></ul></ul></ul><ul><ul><ul><li>supervisory oversight </li></ul></ul></ul><ul><ul><ul><li>principle of “four eyes” </li></ul></ul></ul><ul><ul><ul><li>mandatory approval of over-the-limit transactions by chief employees </li></ul></ul></ul><ul><ul><ul><li>reconciliation frequency </li></ul></ul></ul><ul><ul><ul><li>written format/evidence </li></ul></ul></ul>
  15. 15. Regulated businesses - principles of i nternal control systems <ul><ul><li>acquainting employees with internal directives </li></ul></ul><ul><ul><li>ensuring that all decision-making procedures and control activities can be retraced </li></ul></ul><ul><ul><li>archiving of documents and data </li></ul></ul>
  16. 16. Regulated businesses - principles of i nternal control systems <ul><ul><li>separation of conflicting duties (Chinese walls) </li></ul></ul><ul><ul><li>internal audit performed independently </li></ul></ul><ul><ul><li>evaluation of risks on a continual basis </li></ul></ul><ul><ul><li>timely reporting and timely rectification of all deficiencies </li></ul></ul>
  17. 17. Unregulated businesses <ul><ul><li>no specific legal obligations </li></ul></ul><ul><ul><li>similar measures (precautions) as with regulated businesses </li></ul></ul>
  18. 18. Recommendations <ul><ul><li>internal security policy </li></ul></ul><ul><ul><li>adequate control mechanisms </li></ul></ul><ul><ul><li>independent internal au dit </li></ul></ul><ul><ul><li>evaluation of risks on a continual basis </li></ul></ul><ul><ul><li>understanding employees </li></ul></ul>
  19. 19. Summary <ul><ul><li>W hite collar crime is an issue to consider . </li></ul></ul><ul><ul><li>S trict rules should be set for regulated businesses . </li></ul></ul><ul><ul><li>R easonable precautions could be taken by all businesses . </li></ul></ul><ul><ul><li>> It’s all about people . </li></ul></ul>
  20. 20.  Thank you for your attention. Questions?