| Anyone can commit fraud, whether it’s a | | | | Commonwealth of Pennsylvania. What is shocking |
| CEO of a major corporation or a salesman at a | | | | is that the woman who is being charged with |
| local convenient store. Whatever the case may | | | | over 400 counts of fraud against her is 79 years |
| be, fraud is universal and therefore anyone can | | | | old. Rose Prince, as innocent as she may seem |
| commit fraud. It was estimated that five percent | | | | with her frail appearance, this senior citizen |
| of the United States revenue was lost to fraud in | | | | provided altered registration forms to customers |
| 2006 by the Association of Certified Fraud | | | | who register their cars to the state and pocketed |
| Examiners. Although five percent does not sound | | | | the money leaving the customers with |
| like a lot, that is estimated to be $652 billion | | | | unregistered vehicles. This Pennsylvanian also |
| dollars. What is classified as fraud and what | | | | pocketed sales tax resulting in thousands of |
| isn’t? Fraud is intentional to deceive a person | | | | dollars stolen from her customers. |
| out of their assets. What fraud is not is accidental, | | | | There’s no way to detect a defrauder just |
| there is no such thing as a mistaken fraudulent | | | | by their appearance. Even the most respectable |
| crime. Whatever the outcome may be, someone | | | | men can turn out to be someone who takes |
| gets hurt | | | | advantage of others to benefit themselves. |
| There are three reasons to commits fraud: | | | | Bernard Madoff, the chairman of National |
| opportunity, pressure, and rationalization. Fraud is | | | | Association of Securities Dealers Automated |
| all around us; all a person really needs is the | | | | Quotations (NASDAQ), is making the front page |
| opportunity. A person can be presented with an | | | | headlines with his recent discovery of his |
| opportunity to commit fraudulent acts and when | | | | long-term Ponzi scheme. First off, what is a Ponzi |
| it seems like it’s easy to get away with free | | | | scheme? The Ponzi scheme which is also similar |
| money; it’s hard to deny it. Pressure is | | | | to the pyramid scheme is named after Charles |
| another reason for a person to want to commit | | | | Ponzi. The main concept of the Ponzi scheme is |
| fraud. An example of pressuring into committing | | | | that as people invest their money, to continue to |
| fraud is when a person has a family. If the | | | | bring in money, new investors’ money pay |
| opportunity arises, that person might be drawn to | | | | off the old investors and the cycle goes on. This |
| committing fraud in order to support his or her | | | | is what Bernard Madoff did. He took the money |
| family. With the current economy, mortgages, | | | | invested by people who trusted him and |
| loans, the increase of prices in goods, college, etc., | | | | conducted the Ponzi scheme which resulted in a |
| it could pressure the most honest person to slip. | | | | 50 billion dollar fraud. |
| The pressure to support their family and stay | | | | Working in the retail industry, the company I |
| afloat in the treacherous waters we call our | | | | work for encounter fraudulent activity numerous |
| economy can break a person’s stability and | | | | times. An example, a former manager at my job |
| moral values. Lastly, rationalization can convince a | | | | made a number of fraudulent transactions where |
| person to commit fraud. An example is if an | | | | he would ring up merchandise as returns and |
| employee that’s been working for a company | | | | pocketed the money from each return. He stole |
| for over 10 years feels unappreciated and | | | | hundreds even thousands of dollars from the |
| underpaid finds out a recent graduate starts off | | | | company during the five month period he was |
| at a higher paying position than them. They might | | | | managing the store. Not only did he steal money, |
| come up with a reason to try and milk the | | | | but his actions also ruined inventory. As a result, |
| company for all it’s worth because they feel | | | | he was terminated from the company and the |
| that he or she deserves it. All these are reasons | | | | company came up with new procedures for |
| to commit fraud, which make it very tempting to | | | | returns to prevent this from happening again. |
| pass up any opportunity to benefit oneself, | | | | No matter what the case may be, anyone can |
| without getting caught. | | | | commit fraud. No one can be trusted with |
| What does a person who commits fraud look | | | | anyone’s assets so in order to keep yourself |
| like? Are there certain personal and physical | | | | safe, it’s always better to do background |
| characteristics a person is required to have in | | | | checks on anyone coming in contact with your |
| order to commits fraud? The frightening thing | | | | finances. If there are any red flags that are |
| about fraud is that anyone could take advantage | | | | brought to attention, look into them instead of |
| of a person, even the least expected. In recent | | | | ignoring them. It leaves me with one question, |
| local headlines, a woman was arrested for | | | | who can you trust? |
| defrauding her customers, Penndot, and | | | | |