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1 – 10 of 131Vincente L. Martinez, Julia B. Jacobson and Nancy C. Iheanacho
To explain the significance of the first enforcement action under the Identity Theft Red Flags Rule by the US Securities and Exchange Commission (SEC), which was announced on…
Abstract
Purpose
To explain the significance of the first enforcement action under the Identity Theft Red Flags Rule by the US Securities and Exchange Commission (SEC), which was announced on September 26, 2018.
Design/methodology/approach
Explains how the SEC’s order not only cites violations of the Safeguards Rule under Regulation S-P (a staple of SEC cybersecurity enforcement actions against broker-dealers and investment advisers) but also is the SEC’s first enforcement action for a violation of the Identity Theft Red Flags Rule under Regulation S-ID, which requires certain SEC registrants to create and implement policies to detect, prevent and mitigate identity theft.
Findings
Cybersecurity policies and procedures must match business risks and change as business risks change.
Originality/value
Practical guidance from experienced cybersecurity and privacy lawyers.
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Chander Mohan Gupta and Devesh Kumar
This paper aims to study the concept of identity fraud and how these identity thefts can actually lead to financial crime. These crimes which usually were done in the traditional…
Abstract
Purpose
This paper aims to study the concept of identity fraud and how these identity thefts can actually lead to financial crime. These crimes which usually were done in the traditional way now have taken leaps with the increase in the use of cyber world.
Design/methodology/approach
Several research papers, articles and newsfeeds were referred to study the concept, growth, scope, effect and impact of identity theft. It was also found that identity theft is the most common type of cybercrimes.
Findings
Identity theft though a simple crime but if not taken care of can lead to multiple crimes which can affect not only individuals but also companies. And when these crimes impact companies, they can actually hamper the economy as a whole.
Practical implications
Information for the same is not available very easily, so the study is solely based on secondary data.
Social implications
Identity theft effects an individual not only financially but also mentally and socially; thus, these effect each and every one in the said economy.
Originality/value
This paper is an original work of the authors, and it is for the use of students, educators and academicians.
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Nicole F. Stowell, Martina Schmidt and Nathan Wadlinger
The purpose of this paper is to make readers aware of the extensiveness of healthcare fraud in the USA and how it involves and affects the government, healthcare providers…
Abstract
Purpose
The purpose of this paper is to make readers aware of the extensiveness of healthcare fraud in the USA and how it involves and affects the government, healthcare providers, insurance companies, patients and the public. In addition, recommendations are made that may help control this pervasive type of fraud.
Design/methodology/approach
A range of different journal publications, information from government health institutions and law enforcement websites, healthcare fraud cases and healthcare laws are used as a basis to provide information about how fraudsters are committing healthcare fraud and how to prevent this fraud from occurring.
Findings
Despite increased funding and prosecution efforts by the government, healthcare fraud continues to be a major threat to the US economy and public. While healthcare fraud will never be eradicated, specific efforts can be deployed to help rein in these complex fraud schemes.
Practical implications
The paper provides a useful resource of information on healthcare fraud for healthcare providers, insurance companies, patients and the public that may help combat healthcare fraud and prevent financial losses.
Social implications
Every dollar saved from combating fraud could be used to improve access to more or better health services and can, thereby, save lives.
Originality/value
This paper provides recommendations regarding healthcare fraud that could help prevent this large drain on the US economy.
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Mahmud Akhter Shareef, Yogesh K. Dwivedi, Vinod Kumar, Gareth Davies, Nripendra Rana and Abdullah Baabdullah
The purpose of this paper is to understand the integrated impact of the application of protection measures against identity theft on consumers’ synergistic perception of trust…
Abstract
Purpose
The purpose of this paper is to understand the integrated impact of the application of protection measures against identity theft on consumers’ synergistic perception of trust, the cost of products/services and operational performance (OP) – all of which in turn is postulated to contribute to purchase intention (PI) when shopping online.
Design/methodology/approach
In order to accomplish the specified aim, this study first conducted an experiment by involving the students from a university in Bangladesh. Then a survey was conducted to capture their opinion based on the previous experiment.
Findings
The study identified that in e-commerce, OP and trust have potential impact on pursuing consumers’ PI. Traditionally, price is always an issue in marketing; however, for e-commerce, this issue does not have direct impact on PI.
Research limitations/implications
The main limitation of this study is that a less established e-commerce example was utilized to conduct the experiment and survey for validating the model. Also, the study was conducted only in the context of Bangladesh and a student sample was utilized. Future studies can test the model in different contexts (particularly to verify the impact of privacy) by utilizing data from consumers.
Practical implications
This study has resolved a controversial issue by generating clear guidelines that the overall conjoint effect of OP, trust, and price on PI is neither negative nor neutral. Synergistically, the application of these controlling tools of identity theft can substantially enhance consumers’ trust, which is the single most predictor to pursue consumer PI.
Originality/value
This study has provided in-depth insight into the impact of different controlling measures in e-commerce PI. Practitioners have potential learning from this study that if consumers find the application of different controlling mechanisms against cybercrimes, particularly identity theft, enhancing the reliability, authenticity and security of transactions in this virtual medium, they do not mind paying a higher price. Such insights have not been provided by existing studies on this topic. Developing trust on e-commerce purchase is the driving force, not the price.
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To explain the fraud schemes known as business email compromise (BEC) and executive impersonation that are growing in popularity, and the threat they pose to financial…
Abstract
Purpose
To explain the fraud schemes known as business email compromise (BEC) and executive impersonation that are growing in popularity, and the threat they pose to financial institutions.
Design/methodology/approach
This article explains BEC and executive impersonation and how they are carried out, and discusses how regulations and practical operational steps are trying to address this fraud issue.
Findings
Financial institutions should understand the potential for legal and regulatory risks posed by BEC and executive impersonation, and consider taking steps to create a proactive, culture of skepticism and heightened awareness to combat this type of fraud.
Originality/value
This article is adapted from the original report issued by the American Institute of CPAs and has been updated to address specifics concerning financial institutions.
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Aldo M. Leiva and Michel E. Clark
To examine the COVID-19 pandemic’s effects on regulated entities within the context of cybersecurity, US Securities and Exchange Commission (SEC) compliance, and parallel…
Abstract
Purpose
To examine the COVID-19 pandemic’s effects on regulated entities within the context of cybersecurity, US Securities and Exchange Commission (SEC) compliance, and parallel proceedings.
Design/methodology/approach
Describes the SEC’s ability to conduct its operations within the telework environment, its commitment and ability to monitor the securities market, its enhanced monitoring of the adverse effects of SEC-regulated companies from COVID-19, its guidance to public companies of disclosure obligations related to cybersecurity risks and incidents, the SEC Office of Compliance and Examinations’s (OCIE’s) focus on broker-dealers’ and investment advisories’ cybersecurity preparedness, the role and activities of the SEC Division of Enforcement’s Cyber Unit, and parallel proceedings on cyberbreaches and incidents by different agencies, branches of government or private litigants.
Findings
SEC-regulated entities face many challenges in trying to maintain their ongoing business operations and infrastructure due to severe financial pressures, the threat of infection to employees and customers, and cybersecurity risks posed by remote operations from hackers and fraudsters. The SEC has reemphasized that its long-standing focus on cybersecurity and resiliency within the securities industry will continue, including ongoing vigilance over companies’ efforts to identify, assess, and address the inherent, heightened cybersecurity risks of teleworking and the resource reallocation that business need to sustain their operations until a safe and effective vaccine is developed for COVID-19.
Originality/value
Expert analysis and guidance from experienced lawyers with expertise in securities, litigation, government enforcement, information technology, data protection, privacy and cybersecurity.
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Angela S.M. Irwin and Adam B. Turner
The purpose of this paper is to highlight the intelligence and investigatory challenges experienced by law enforcement agencies in discovering the identity of illicit Bitcoin…
Abstract
Purpose
The purpose of this paper is to highlight the intelligence and investigatory challenges experienced by law enforcement agencies in discovering the identity of illicit Bitcoin users and the transactions that they perform. This paper proposes solutions to assist law enforcement agencies in piecing together the disparate and complex technical, behavioural and criminological elements that make up cybercriminal offending.
Design/methodology/approach
A literature review was conducted to highlight the main law enforcement challenges and discussions and examine current discourse in the areas of anonymity and attribution. The paper also looked at other research and projects that aim to identify illicit transactions involving cryptocurrencies and the darknet.
Findings
An optimal solution would be one which has a predictive capability and a machine learning architecture which automatically collects and analyses data from the Bitcoin blockchain and other external data sources and applies search criteria matching, indexing and clustering to identify suspicious behaviours. The implementation of a machine learning architecture would help improve results over time and would be less manpower intensive. Cyber investigators would also receive intelligence in a format and language that they understand and it would allow for intelligence-led and predictive policing rather than reactive policing. The optimal solution would be one which allows for intelligence-led, predictive policing and enables and encourages information sharing between multiple stakeholders from the law enforcement, financial intelligence units, cyber security organisations and fintech industry. This would enable the creation of red flags and behaviour models and the provision of up-to-date intelligence on the threat landscape to form a viable intelligence product for law enforcement agencies so that they can more easily get to the who, what, when and where.
Originality/value
The development of a functional software architecture that, in theory, could be used to detected suspicious illicit transactions on the Bitcoin network.
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Martina Kirsten Schmidt, Nicole Forbes Stowell, Carl Pacini and Gary Patterson
The purpose of this paper is to discuss financial fraud and exploitation against seniors relating to wills, trusts and guardianship. The paper describes how this fraud affects its…
Abstract
Purpose
The purpose of this paper is to discuss financial fraud and exploitation against seniors relating to wills, trusts and guardianship. The paper describes how this fraud affects its victims, points out red flags and makes recommendations that may help control this pervasive type of fraud.
Design/methodology/approach
Information from a range of different sources, such as journal publications, law textbooks, law enforcement websites and estate planning cases are used as a basis to provide information about how fraudsters are committing this type of fraud, which red flags to watch out for and how to prevent this fraud from occurring.
Findings
Fraud relating to wills, trusts and guardianship is oftentimes difficult to detect and continues to be a grave threat to its victims. While this fraud will likely never be eradicated, specific efforts have been put into place to track financial exploitation. Further steps presented in this paper can be deployed to help rein in these fraud schemes.
Practical implications
The paper provides useful information about frauds related to wills, trusts and guardianship for stakeholders. This includes, but is not limited to, anyone whose work is related to seniors, such as accountants, lawyers, regulators, bankers, financial planners, law enforcement personnel, academics, medical professionals, caregivers, family members and ethicists. These stakeholders can use this information to help combat this fraud and prevent not only financial losses of seniors but physical harm as well.
Social implications
Decreasing financial exploitation of seniors will not only improve their financial position and may reduce their reliance on Medicaid but will also improve their mental and physical well-being and save lives.
Originality/value
Research in the area of maltreatment and exploitation of older adults is still in its early stages, as knowledge of effective prevention, intervention and remediation practices are limited. This paper adds to the research in this arena by drawing on a unique set of resources that shed light on financial fraud commonly committed against seniors. This study also makes much needed recommendations that are aimed to prevent this threat related to wills, trusts and guardianship.
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Jack G. Kaikati and Andrew M. Kaikati
This paper seeks to provide an overview of the growing popularity of slotting fees and their potential for abuse that led to congressional hearings as well as investigations by…
Abstract
Purpose
This paper seeks to provide an overview of the growing popularity of slotting fees and their potential for abuse that led to congressional hearings as well as investigations by the Federal Trade Commission and the General Accounting Office, respectively. It also aims to discuss the widespread use of promotional allowances and their potential for abuse, leading to accounting irregularities.
Design/methodology/approach
It focuses on how promotional allowances have been improperly accounted for at Royal Ahold, Fleming Companies and AmerisourceBergen Corp. By reviewing how the Financial Accounting Standard Board (FASB) overhauled the accounting rules, it sheds some light on the magnitude of these practices.
Findings
The FASB failed to go far enough in its crack‐down. It reveals that heavy reliance on these allowances by financially weak retailers can be a red flag to current and potential investors, both professional and individual. However, the post‐Enron accounting rule changes and the Sarbanes‐Oxley Act are forcing CEOs and CFOs of publicly traded companies to rethink how to account for these allowances. Additionally, while the vast majority of grocery chains dabble in the slotting ritual, the world's largest retailer and the world's largest commissary do not demand and do not accept slotting fees.
Originality/value
By reviewing a limited sample of the literature, this study offers some guidelines for conducting future research.
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The purpose of this paper is to present a concept of the protocol for public registries based on blockchain. New database protocol aims to use the benefits of blockchain…
Abstract
Purpose
The purpose of this paper is to present a concept of the protocol for public registries based on blockchain. New database protocol aims to use the benefits of blockchain technologies and ensure their interoperability.
Design/methodology/approach
This paper is framed with design science research (DSR). The primary method is exaptation, i.e. adoption of solutions from other fields. The research is looking into existing technologies which are applied here as elements of the protocol: Name-Value Storage (NVS), Berkley DB, RAID protocol, among others. The choice of NVS as a reference technology for creating a database over blockchain is based on the analysis and comparison with two other similar technologies Bigchain and Amazon QLDB.
Findings
The proposed mechanism allows creating a standard database over a bundle of distributed ledgers. It ensures a blockchain agnostic approach and uses the benefits of various blockchain technologies in one ecosystem. In this scheme, blockchains play the role of journal storages (immutable log), whereas the overlaid database is the indexed storage. The distinctive feature of such a system is that in blockchain, users can perform peer-to-peer transactions directly in the ledger using blockchain native mechanism of user access management with public-key cryptography (blockchain does not require to administrate its database).
Originality/value
This paper presents a new method of creating a public peer-to-peer database across a bundle of distributed ledgers.
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