The different types of fraud and how they’re changing

https://www.experian.co.uk/blogs/latest-thinking/fraud-prevention/what-is-first-second-and-third-party-fraud/

• •     First Fraud

First-party fraud is where a person knowingly misrepresents their identity or gives false information for financial or material gain.

Examples:  Fronting, Chargeback fraud , De-shopping Goods Lost in Transit Fraud (GLIT)

• •     Second Fraud

An individual knowingly gives their identity or personal information to another person, to commit fraud.

Examples: 

An individual allows someone else to use their bank account to transfer money in and out, in exchange for a small fee

• •     Third Fraud

Third-party fraud, generally known as identity theft, is where an individual’s identity or personal details are used without their consent or knowledge, to gain credit or products

Examples: 

It involves a person’s identity or personal details being used without their consent or knowledge, to gain credit or products.

ACTIVITY:

Table discussion, Think any ways to detect Fraud types 1-3  

Auditing Process

Read

1. https://www.smartsheet.com/operational-audit-process

Operational auditing process

• ISO19011 ( Audit)

         Confidentiality: Keep information secure, and protect confidential or sensitive information.

Independence: Maintain impartiality and keep actions and reporting bias-free.

Evidence-Based: Depend on a fact-based approach to reach reliable conclusions.

• Internal and External Auditing

• Different types of operational auditing

• Operational Audit and Audit Plan Examples

ACTIVITY:

Table discussion, What benefits can we get from audit for a firm ?

  Video for auditing software, Regtech