White Collar Crime
Principles and Theory of Securities Management
For: Professor Leiman
By: Jaime Gwidt
June 25th, 2016
This paper will cover the security crimes of credit card and health care fraud. It will discuss how these crimes are committed, their impacts on organizations and the tools a security professional has available to reduce opportunities for such crimes to occur. It will also cover an example of how credit card fraud was discovered and discuss possible measures that could have deterred those found guilty.
Credit Card Fraud
Credit card fraud occurs “when consumers give their credit card number to unfamiliar individuals, when cards are lost or stolen, ...view middle of the document...
“Preventing credit card fraud often requires more than one solution. You may find that you need to check IDs and signatures, look for security features, such as holograms, and verify that the address, ZIP code and telephone number you are given matches the cardholder's account information” (Meyers, 2016). You may also request verification codes for online transactions as part of your prevention process. If you've received a very large order from a new customer, you may decide to do some extra checking before you ship it out. Likewise, you may decide to be particularly cautious about accepting international orders, calling the card's bank to verify the information you've received from the purchaser.
Health Card Fraud
Health care fraud occurs when “false or misleading information is provided to a health insurance company in an attempt to have them pay unauthorized benefits to the policy holder‚ another party‚ or the entity providing services. The offense can be committed by the insured individual or the provider of health services” (IFPA, 2016).
In 2011, $2.27 trillion was spent on health care and more than four billion health insurance claims were processed in the United States (NHCAA, 2016). It is a reality that some of these health insurance claims are fraudulent. Although they constitute only a small fraction, those fraudulent claims carry a very high price tag.
The National Health Care Anti-Fraud Association (NHCAA) estimates that the financial losses due to health care fraud are in the tens of billions of dollars each year (NHCAA, 2016).
Whether you have employer-sponsored health insurance or you purchase your own insurance policy, health care fraud inevitably translates into higher premiums and out-of-pocket expenses for consumers, as well as reduced benefits or coverage. For...