Cybercrimes and Computer Security Systems
Assignment 2: Cybercrimes and Computer Security Systems Due Week 4 and worth 280 points With the advent of computers, cybercrime and Internet frauds are increasing in frequency and in size. The trend is likely to continue. Cybercrimes are described as activities in which a computer or network of computers are an integral part of a crime. For this assignment, research the Internet or Strayer databases and identify an organization that was a victim of cybercrime. Write a four to five (4-5) page paper in which you: Based on your research, identify and assess the fraud that occurred in the organization, as well as the impact that the fraud had on the corporation’s investors and creditors. Suggest how a financial forensic investigation could have detected fraud in the organization that you researched. Consider the risk factors, the elements of fraud, and the analysis of competing hypotheses. Asses the economic losses that occurred at the organization you researched and recommend a plan of action for the company to restore any economic losses. Compare and contrast accidental fraudsters and predators. Give your opinion on what type of fraudster(s) committed fraud at the organization you researched. Provide support for your rationale. Evaluate how teamwork and leadership are effective tools for financial forensic investigations. Provide support for your evaluation. Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: Examine different types of organizational illegal activities, including cybercrimes and the impact to the organization. Use technology and information resources to research issues in forensic accounting. Write clearly and concisely about forensic accounting issues using proper writing mechanics. Note: Use Target Corporation, Please
Cybercrimes and Computer Security Systems: Target Corporation
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Introduction
Businesses are increasingly relying on computers to carry out daily activities, but automation of services has also increased risk of computer attacks. While the biggest fraud cases have tended to focus on insiders in companies like in Enron, vulnerabilities from sophisticated computer attacks can even have more devastating effects on customers. In the case of Target Corporation, data breach led to compromise of details of customers' credit and debit cards. The data breach affected as many as 40 million Americans, for customer cards using magnetic stripes capable of being swiped at cash registers (Skariachan, 2014). Cyber crooks are tech savvy, and hence organizations need to update and review their data security measures to minimize potential losses form data breach and alterations. Similarly, forensic accountants need to acquire better computer skills to detect challenges in computer security systems.
Fraud in Target Corporation
Target Corporation is an American retailing organization and the company has subsidiaries in Canada. As a discount retailer, the company attracts many customers including those who use both debit and credit cards at the company's outlets instead of paper money. Besides having access to customer payment details, the cyber crooks were able to access addresses and emails of Target customers in December 2013. This increases the risk of identity theft and fraudulent credit card payments, as criminals have the ability to clone cards which can be used to commit more fraudulent activities. Furthermore, Target shoppers are also at risk of phishing from cyber criminals intent on getting more personal information following the data breach.
Impact of fraud on investors and creditors Target Corporation is a preferred investment because of dividend stocks and strength of the company's fundamentals. Nonetheless, after the theft of credit card numbers, there was a fall in investor confidence. Investors typically worry about anything that might affect the stock prices, while media coverage and customer requests for more information spread fear to investors. In recognition of the need to improve data security, executives at Target Corporation have resolved to use technology to curb fraud by using innovations found in Europe, but rare in America (Scott, 2014). For creditors, there was less concern because of binding contracts among fixed claimants. However, the December holiday's season is a great shopping opportunity that has a big impact on the company's overall performance, and this implied that the company was less capable of meeting short term obligations.
Forensic investigation and fraud
A forensic investigation of the company would have helped uncover fraud in Target Corporation. The company relied on magnetic stripe cards, which are easy to clone, and this increased risk of fraud if anyone was able to infiltrate the company's computer system. The high number of shoppers using credit cards would have raised concern that it was possible to breach data through well planned infiltration. There is an element of fraud as some shoppers suffered loss, from the breach after there was further use of their details, but victims can lodge suits for invasion of privacy. Analysis of competing hypotheses would have shown that either the company data was secure or that there was possibility of data breach. In...