1. FRAUD EXAMINATION ALBRECHT, ALBRECHT, & ALBRECHT Fraud in E-Commerce Chapter 17

2. Learning Objectives 1.Understand e- commerce fraud risk. 2.Take measures to prevent fraud in e-commerce. 3.Detect e- business fraud.

3. Discuss Internet Statistics. Number of People Using Internet Internet Usage Doubles Every 100 Days Value of Internet Transactions In Million $ Years to Reach 60 Million People 0 5 10 15 20 25 30 35 RadioTVInternet 0 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 19992005

4. Review the Fraud Triangle.

5. Discuss Fraud Risks of E- Commerce – Pressure.

6. Discuss Fraud Risks of E- Commerce – Opportunities.

7. Discuss Fraud Risks of E- Commerce - Rationalization

8. What is the Best Way to Prevent E – Fraud?

9. List & Comment on Internal Control Components.

10. What Are Three Common Authorization Controls?

11. Discuss Topics in Risk Assessment

12. What Control Activities Can be Used to Prevent E – fraud? Highlight the Most Significant.

13. What Should be Done to Discover Management Fraud in E - Commerce?

14. What Should Fraud Examiners Endeavor to do in an Examination?

15. What is One Thing That Should be Done with E – Businesses?

16. Terms Match Using unique human body features to secure controls Stealing data or personal information A signature sent over the internet Exchanging business information & transactions in electronic paperless form Biometrics Data Theft Digital Signatures & Certificates E-Business

17. Terms Match Pretending to be someone else Illegal or unauthorized viewing of information passed along a network Changing information in an e- mail header or IP address to hide identity Mimicking another web site to trick or confuse e-mail or e- business users Falsified Identity Sniffing Spoofing Hijacking