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Equifax Breach details
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Introduction The credit-reporting bureau Equifax disclosed one the largest data breach in modern history, reporting that private information and social security numbers 143 million consumers. Initially the breach happened in May through July and was not discovered until July 29, no evidence of unauthorized access to databases (John). Analyzing key issues what went wrong with the leader, what went wrong on the end of the security part of the I.T. department, and highlighting some ways the consumers can be proactive in protecting their private information.
Highlights of the Issues The reason for the Equifax data breach is failure on the I.T department to regularly update web application by Apache Struts. After an intensive investigation
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In highlighting the disarray Richard Smith became CEO in 2005 his findings were underwhelming and describing a “culture of tenure” and “average talent”, but saw the potential in Equifax (Riley). Also, a lack of security precaution as a former executive wrote on LinkedIn that "it bothered me how much access just about any employee had to the personally identifiable attributes. I would see printed credit files sitting near shredders, and I would hear people speaking about specific cases, speaking aloud consumer’s personally identifiable information." Former Chief Information Security Officer Susan Mauldin has a bachelor’s and master’s in music composition, from the University of Georgia. Also, highlighting a lack of potential background and training, while going through scrubbing information like her education not being shown a later date (fig.1). All this is potentially done to lessen the damage of on the credibility of Equifax, but does not look good when looking from the outside. After becoming CEO, he immediately hired Tony Spinelli a well-known security expert but leave his position along with many rank members (Riley). Another key factor leading up to data breach of 2017 due to lack of seasoned veteran in the I.T.
Richard Hawkins, ex-CFO of a health service industry giant McKesson, was accused and later brought to court for inflating revenue at McKessonHBOC. The acquisition of HBOC, a medical software company, happened long after Hawkins became the CFO, but right before the management of both companies decided to falsify the facts.
So just how did Scott Welch fit the profile of the average perpetrator? Based off the information reported by the Association of Certified Fraud Examiners’ (ACFE) 2010 Report to the Nation, Welch fit directly into the median for a perpetrator – he was male, between the ages of 46 – 50, had a tenure of at least 6 – 10 years, an executive position as a Vice President. According to the ACFE’s report a perpetrator’s position within the company, age, tenure, gender and education level all have a have consideration in a fraud. In the 2010 report, it is noted that 66.7% of all frauds are perpetrated by men, more than likely due to the fact that more men hold a position of authority. Of the cases studied, 74% of all managers and 88% of all owners/executives were men (Association of Certified Fraud Examiners (ACFE), 2010). The combination of Welch’s tenure and authoritative position may have exacerbated the losses suffered by Wachovia and may also have helped him hide the fraud from detection for an extended period of time of eight years (“Former Wachovia,” 2011). This period is well above and beyond the 24 months reported by the ACFE as the median time frame in which frauds perpetrated by executives/owners were detected (ACFE, 2010). Taking into consideration all the kn...
The marketplace can be unpredictable, as shown in the 2008 financial crisis. Since 2008 keeping track of one’s own financial means has become increasingly important. Equifax’s goal is to meet the needs of individuals and businesses by providing them with applicable data thereby allowing them to make well informed business decisions. The more organizations and individuals are informed and updated the less of a chance for financial disruptions.
One year ago, on September 8, 2016 the Consumer Financial Protection Bureau(CFPB), the Los Angeles City Attorney and the Office of the Comptroller of the Currency (OCC) fined Wells Fargo Bank $185 million, alleging that more than 2 million bank accounts or credit cards were opened or applied for without customers' knowledge or permission between May 2011 and July 2015. This essay will discuss the Wells Fargo scandal by explaining how the event happened and describing how the organization approached handling a response to the crisis. This will be seen, firstly by describing the how the scandal happened, and what were the causes, secondly by discussing the reaction of the company in front of the situation, how they dealt with the crisis and then
Issa utilizes statistics to suggest ideas. He says, “The Office of Personnel Management’s security breach resulted in the theft of 22 million Americans’ information, including fingerprints, Social Security numbers, addresses, employment history, and financial records” (Issa). Issa also adds that, “The Internal Revenue Service’s hack left as many as 334,000 taxpayers accounts compromised‑though just this week, the IRS revised that number to o...
Throughout the past several years major corporate scandals have rocked the economy and hurt investor confidence. The largest bankruptcies in history have resulted from greedy executives that “cook the books” to gain the numbers they want. These scandals typically involve complex methods for misusing or misdirecting funds, overstating revenues, understating expenses, overstating the value of assets or underreporting of liabilities, sometimes with the cooperation of officials in other corporations (Medura 1-3). In response to the increasing number of scandals the US government amended the Sarbanes Oxley act of 2002 to mitigate these problems. Sarbanes Oxley has extensive regulations that hold the CEO and top executives responsible for the numbers they report but problems still occur. To ensure proper accounting standards have been used Sarbanes Oxley also requires that public companies be audited by accounting firms (Livingstone). The problem is that the accounting firms are also public companies that also have to look after their bottom line while still remaining objective with the corporations they audit. When an accounting firm is hired the company that hired them has the power in the relationship. When the company has the power they can bully the firm into doing what they tell them to do. The accounting firm then loses its objectivity and independence making their job ineffective and not accomplishing their goal of honest accounting (Gerard). Their have been 379 convictions of fraud to date, and 3 to 6 new cases opening per month. The problem has clearly not been solved (Ulinski).
The author appear to be moderately perplexed by the fact that American state that they are concerned about privacy but they yet disclose personal information to entities. I would offer that the reason many are disclosing the information, is that business will not offer their services or product without the personal information. One can go to another vendor for service, only to have the same problem repeated. Now what is perplexing, is the authors claim that “a significant number, 11%” (Caftori & Teicher, 2002) of the population believes that corporate owners should go to prison for violations of information privacy. I must say, I never thought of 11% of a population as a significant percentage, but I am just a student. More confusion for the authors is when a computer system that handles big data has faulty output. They use the analogy of an airline, and if they lose your luggage and should receive compensation, but this is not the case when the DMV provides faulty data. This should not be perplexing, with the airline an explicit contract is made with the purchase of the ticket. The airline is transport my body and my luggage to the agreed location without damage or loss. Luggage is tangible. The contents are worth x amount of dollars and the airline pays the individual
Identity theft has been a major issue of privacy and fraud. In the data breach analysis from the Identity Theft Resource Center (2013), the number of data breaches from the year 2005 to 2012 increased. In 2012, there had been 49% where the data breach exposed people Social Security Number. The data breach of 2012 has a rate of 27.4% caused by hackers. These breaches were commonly from 36.4% businesses and 34.7% health and medical (Identity Theft Resource Center 2013). The number of identity theft varies from physical possession to digital possession. At least one-fifth of trash cans contains papers listing people’s credit card number and personal information. People that throw away their trash mails contain much personal information that is useful to steal someone's identity (Davis, 2002). Technology becomes a need where people use it daily and as a result it has also become a use for identity theft as well. Throughout the years as technology develops so does identity theft. This paper shows the types, methods and technique used for identity theft, and it also examines possible risk of identity theft from current technology.
Price and Sorrells shows that companies are taking too much advantage from the customer, the government, even though their trying, needs to start helping the people protect their privacy, and a balance between the amount of trust people should have giving out their sensitive records to which information is protected. A concern that is happening that the government and corporations is that personal information is not secured well enough. Price states how over 100 million sensitive records were hacked or lost in a year and the percent of increase in data breaches is 650 more than last year. Her description of how unreliable the government is with personal information by using logical and well researched information to put no faith and fear in the reader.
In modern day business, there can be so many pressures that can cause managers to commit fraud, even though it often starts as just a little bit at first, but will spiral out of control with time. In the case of WorldCom, there were several pressures that led executives and managers to “cook the books.” Much of WorldCom’s initial growth and success was due to acquisitions. Over time, WorldCom discovered that there were no more opportunities for growth through acquisitions when the U.S. Department of Justice disallowed the acquisition of Sprint.
This shows how a lack of transparency in reporting of financial statements leads to the destruction of a company. This all happened under the watchful eye of an auditor, Arthur Andersen. After this scandal, the Sarbanes-Oxley Act was changed to keep into account the role of the auditors and how they can help in preventing such
They were committing fraud by creative accounting, acting illegally when using insider trading and shredding their documents relevant to the investigation. Next, consider the stakeholders. Anyone who owns stock in the company would suffer, along with every employee. Under the values bullet we can assume that they have none. Greed and power got the better of every one of them.
The Tyco accounting scandal is an ideal illustration of how individuals who hold key positions in an organization are able to manipulate accounting practices and financial reports for personal gain. The few key individuals involved in the Tyco Scandal (CEO Kozlowski and CFO Swartz), used a number of clever and unique tactics in order to accomplish what they did; including spring loading, manipulating their ‘key-employee loan’ program, and multiple ‘hush money’ payouts.
II. Motivation for Listening: Identity theft is becoming a major problem for consumers. Frank Abagnale now an American Security Consultant who has had a novel and a movie made after him after he had stolen the identities of an airline pilot, doctor, lawyer, and a US Bureau of Prison agent. He said that the police cannot protect consumers, people need to be more aware and educated about identity theft, you need
Some examples are consumer fraud, management fraud, employee embezzlement, Ponzi schemes and numerous others. In 2014, the Security Exchange Commission announced a high-tech accounting quality model for the recognition of accounting fraud and improper disclosures. The model was coined “Robocop” by some and is characterized as a vigorous means of providing quantitative analytics to measure and recognize irregularities in the financial statements for companies that are registered (Boyle, Boyle, & Carpenter, 2014). As per Dowd (2016), an Act was set into law to battle the corporate fraud that put investors and shareholders in danger and to check that the financial statements and financial standing of traded on open market organizations were correct.