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Based on the given information, identify and explain the type of fraud that has taken place.

Home, - Explain the type of fraud that has taken place

Question - Mr Smith has been working hard for the last ten years in MarksPush Limited, and he has requested frequently his immediate boss and other concerned officers to consider himself for the promotion. Even though some other junior workers are promoted, the promotion requests of Mr Smith are always ignored. Finally, Mr Smith decided to resign since he thought he was not fairly treated and therefore not promoted. He has secured a similar job in XYZ Limited, one of MarksPush Limited's competitors, based on his qualification and competency. Mr Smith understandsthat the IT department of MarksPush Limited is not efficient, and there are no defined procedures for the account and passwords of terminated employees. Mr Smith further confirmed that his account and password for MarksPush Limited were still active. Using these details, Mr Smith accessed, copied and brought many innovative engineering designs from MarksPush Limited to XYZ Limited.

a) Based on the given information, identify and explain the type of fraud that has taken place.

Answer - The data fraud has also occurred here. The private information of the MarksPush Limited is accessed in illegal way without the consent of the company.

Data fraud is done by Mr Smith as he has accessed the crucial information of the Markspush Limited compared and shared it with the new company that is XYZ limited. This can lead to loss of the competitive advantage in the Marks push company as well as it can cause huge financial loss in MarksPush Limited. The private information of the MarksPush Limited is shared to XYZ limited by Mr Smith.

b) What must have motivated the employee to commit the fraud? Explain your answer.

Answer - Lack of the transparency and the unfairness in the promotional policy of the MarksPush Limited lead to the fraud. If the company has used fair promotional policy and defined the criteria for the promotion then, this fraud had not taken place. There should be fair policy for the promotional aspects in the organization for the long term retention of the employees. The fair policy of the promotion in the organization increase the trust of the employees on the organization and they are more loyal to organization. Non transparency and the unfairness in the promotion policy can lead to loss of the talented employees in the organization.

c) List and explain in detail two contributing factors to the type of fraud that had taken place.

Answer - Factors include

Lack of information security: The account of Mr smith should have been blocked after the leaving of Mr smith from the organization. There are no controls for preventing the loss of the confidentiality of the information.

Lack of information handling policy: There is no policy in MarksPush Limited that can prevent the employees from sharing confidential information with outsiders. There is not information security in place which can prevent the loss of the security of the information.


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