6 Discussions
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DiscussionCOmment3.docxVideo Summary
The new frontier of technology risks
Walt Manning, CFE
President Investigations
“A bright future for technology comes with dark corners of fraud.”
In the video, Walt Manning explains the fraud risks that come with increased connectivity and ever-evolving technology.
How connectivity makes us vulnerable?
Cisco predicts that by 2050 there would be over 15 billion connected devices, all available over the internet. These devices connected inside everyone’s home, with personal and private information can definitely increase the vulnerability to break our private securities as individuals. He mentions different devices such as cameras, door locks, baby monitors, heating or cooling controls, fittnesss trackers etc. Devices that are all connected and if someone take your wireless password can access to private information.
He mentions these other Risks
Short URL & Shadow IT
Short URL
Some companies trying to protect their security, uses Short URL, but as a user you take the risk that you will never know where a short URL can take you.
Shadow IT
Is when employees use Cloud Services to create applications, data storage or whatever he wants without the approval or knowledge of the IT department. Situations like this allow the employees handle sensible data such as customer information.
Video Analysis Question
Answer with 3 paragraphs and 3 references
Locate the video titled The New Frontier of Technology Risk on the ACFE website at http://www.acfe.com/vid.aspx?id=4294991862 and post your comments regarding how new technology has created more of a risk. How would you minimize the risks discussed in this video? Discuss your ideas with at least 1 other classmate.
Comment this post with 3 paragraphs and 3 references
Mr. Manning spoke about several different types of internet fraud that could occur. One that I feel has commonality across several frauds was the health app possibly violating privacy laws. This is much the same as internet payment fraud. They both raise, “legal problems such as the sharing of credentials by customers, and liability and responsibility sharing among the payment service providers in the payment chain” (Kovács & Sandor, 2016, p. 149). The health app may not be sharing payment information but it is sharing other personal data that can be damaging to the customer.
These risks are new to society and with that must come new methods of prevention. “It raises the issue of authenticating all those who are involved in the transactions, which is one of the key problems to be solved” (Kovács & Sandor, 2016, p. 149). Insuring that the sensitive data that is released onto the internet is not then taken and used for nefarious reasons should be top priority for any entity using online services. This starts with those that have access to the data, from both the customer’s end and the company’s. Without particular policies and procedures in place to limit the exposure of personal data, fraud will occur frequently and unchecked.
Research shows there are four basic tasks that an entity utilizing any internet-based payment system should use. While these are specific to online payment services, they certainly could be used to prevent any personal data breach. The Journal of Money Laundering Control suggests an entity, “perform specific assessments on the risks associated with providing Internet payment services…strong customer authentication…implement effective processes for authorizing transactions, as well as for monitoring transactions and systems…engage in customer awareness and education programs on security issues” (Kovács & Sandor, 2016, p. 150-151). Specifically, the increase in customer awareness education is an excellent manner of reducing the occurrence of fraud. The more customers know about fraud and how it occurs, the more diligent consumers will be in their personal data protection. As we move into a cyber-world, businesses around the world have been working to protect their customers’ information but it is time for consumers to join the fight against fraud so they do not become a victim.
