Business Fraud Essay

889 words - 4 pages

Business Fraud

Amber Boltze
November 8, 2013
David Adu-Boateng

In April 2011, a number of lawsuits were filed against Sony Corporation for the theft of user data from the PlayStation game network. The lawsuits accuse Sony of negligence and breach of contract for allowing the personal data of more than 100 million on-line video game users to be compromised (Tauriello, 2011). A hacker stole the names, birth dates and possibly credit-card numbers for millions of people who play online videogames through Sony’s sne in Your Value Your Change Short position PlayStation console. This could rank among the biggest data breaches in history. Sony is being criticized for not alerting ...view middle of the document...

Sony network sites such as Sony Corporation of America, Sony Electronics, Sony Pictures and even old websites including personal information were all accessible. Employee information was made available by virtue of an access point in the identity management system. Information became available on IT managers which could be exploited to launch phishing attacks on the sites. Hidden files could be accessed containing items such as links to password protected applications. The servers providing information on Sony customers linking their information to Facebook were in jeopardy. The Riverbed Technology security management appliance had a user-id already populated, accessible to anyone through one of the Sony servers (Fulks, 2001). These weaknesses of Sony caused these hackers to feel even more pressure due to the fact that it seemed so easy and effortless to accomplish. The rationale for these actions, the hackers claimed that the objective “was to prove that the Sony systems were easily breakable (Fulks, 2011).”
To mitigate the loss in this scenario Sony could have started by having greater server protection. They should have properly secured their data through known and available encryption methods. Although hackers may still have had the ability to get through it, it could have at least limited them to less than 77 million users. Sony could have been paying closer attention to and monitoring the validity of data collection and accessibility. They need to focus on operational crisis just as much as management crisis. Due to the poor crisis procedures of not notifying the consumers of the breach until April 26 despite the fact it had been investigating unusual activity since April 19, the damage that has been done to Sony may be irreparable to their consumers. To prevent future breaches and to have kept this breach...

Other Essays Like Business Fraud

Ethics- Fraud Essay

891 words - 4 pages unexpectedly. The fraudulent activity was difficult to figure out because it had many layers of fraudulent loan agreements. These loans created a false perception of a successful company. Characterized as a Ponzi scheme, the fraud was using newly invested money to pay off earlier debt obligations. Le-nature falsified invoices, checks, account statements, and other financial documents to verify business transactions and activity that never actually

Medicare Fraud Essay

2952 words - 12 pages reach Medicare outlier payments on a majority of its Medicare patients. This suit almost cost Tenet to go under as a business. Still today, Tenet is trying to recover almost nine years later from the effects of this case. The largest in Medicare fraud involved a company called Columbia/HCA, now it is known just as HCA. The net settlement of the case includes the following: $631 million in civil penalties and damages, $840 million in

Financial Fraud

2214 words - 9 pages business professionals making financial fraud difficult to prevent and catch1. In this document we will look at several types of financial fraud cases including the cases on Bernard Madoff, Firepower, Storm Financial and Robert Blanshard. When looking at an investment opportunity it is important to do your due diligence to ensure your money is going into a safe and legal investment proposal. Due diligence is essential for individuals, groups

Accounting Fraud

4191 words - 17 pages whether or not I believe that the current business and regulatory environment is more conducive to ethical behavior. I will say up front that as I start this paper I do not believe anything has improved in America or in the world ethically speaking. I say this with confidence but not with pride. After all we are all human and we all have a sin nature. I do not care if a person tells me they do not believe in God or if they tell me they do believe in

Zzzz Best Fraud

651 words - 3 pages Barry Minkow founded ZZZZ Best (pronounced Zee Best) while 15 years old and a sophomore in high school. The business started in his parent’s garage with three employees and four telephones. Minkow struggled to meet basic expenses in the beginning. In January 1986, ZZZZ Best went public and began to sell shares on NASDAQ. However, the company began to rapidly decline. In July 1987, Minkow resigned and the company sued him for fraud allegations

Worldcom Financial Fraud

3936 words - 16 pages Education, 19(1), 101-117. Zona, F. (2012). Antecedents of corporate scandals: Ceo's personal traits, stakeholders' cohesion, managerial fraud, and imbalanced corporate strategy. Journal of Business Ethics, 113, 265-283. Zyglidoploulos, S. (2009). Rationalization, overcompenstation, and the escalation of corruption in organizations. Journal of Business Ethics, 84, 65-73. |

Dealing with Fraud

2585 words - 11 pages Dealing with Fraud Joseph B. Amah Professor Dr. Wanda E. Allen HSA 515 Law and Health Care System Strayer University Delaware County Campus June 18, 2013 Abstract Fraudulent behaviors have deep rooted history in most American organizations, including medical institutions. There is no doubt, therefore, that one of several ways an administrator can succeed as a Chief Nursing Officer (in

Fraud at Worldcom

763 words - 4 pages FRAUD AT WORLDCOM LDDS began operations in 1984 offering services to local retail and commercial customers in he southern states. It was initially a loss making enterprise, and thus hired Bernie J. (Bernie) Ebbers to run things. It took him less than a year to make the comoany profitable. By the end of 1993, LDDS was the fourth largest long distance carrier in the United States. After a shareholder vote in May 1995, the company officially

Case Study 1 And The Fraud Continues

1153 words - 5 pages A business can not work out without an account system, which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls that companies used to protect themselves such as

Revenue Fraud

741 words - 3 pages analysis is the study of percentage changes in comparative financial statements. It compares one year to the next. 6. Comparing recorded amounts in the financial statements with the real-world assets they are supposed to represent would be most effective in detecting: 
 a. Cash and inventory fraud. 
 For example, conducting periodical physical inventory counts and reconcile cash receipts daily with appropriate documentation can help prevent and

Welfare Fraud

1882 words - 8 pages Welfare Fraud Ben Donivan University of Charleston English 101 Mrs. H March 05, 2013 Abstract Drug testing for welfare should be made mandatory. There are the exceptions to rule however, such as someone on welfare recovering from a drug addiction. There is a severe problem with people that are abusing the welfare system. Welfare is in place to help the United States citizens when extra help is needed. There is an abundance of welfare

Related Papers

Fraud Risk And Detection In Small Business Systems Auditing – Acc569

1031 words - 5 pages Fraud Risk and Detection in Small Business Research Paper Name of Student Systems Auditing – ACC569 Professor November 21, 2010 The idea of fraud in a small business covers every part of the business; an article written in SmartPros Ltd says that “Five percent of a typical businesses revenue is lost to fraud each year.” (Corley, 2010). The cost of fraud can be measured in dollars, business position

Business Law Fraud Essay

998 words - 4 pages Written Assignment 1. a) From the information given a contract is necessary because according to the Statute of Fraud it states that sale of goods priced at five hundred dollars or more. This type of contract needs to be a writing or memorandum and signed. The essential terms of this writing are quantity, signed by party to be charged, name of parties, subject matter, and consideration. In this scenario there was a contract offer because

Medicare Fraud Essay

664 words - 3 pages Medicare fraud is becoming a huge problem in today’s society. Medicare is a health insurance program for personnel paid by taxes the American population contributes to for personnel 65 years or older. When a health care provider, health suppliers, and private health companies deliberately bill Medicare for supplies or services that were not given is considered Medicare Fraud. To include, when a person uses another person’s Medicare card to

Computer Fraud Essay

1037 words - 5 pages to bee more than $5,000 but they still need to show they suffered from a loss or damage. (Computer Fraud and Abuse Act (CFAA)) Business implications It’s important for all organizations to protect their information system from computer fraud. Organizations are starting to implement policies or action that will decrease the potential for fraud and any loss as a result. These policies or actions include, improving the detection of fraud, reduce