Financial Fraud Case: Michelle Marsico

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The fraud that occurred in the organization and the impact it had on investors and creditors.
On June 2012, what appeared to be a normal business day for Michelle Marsico, President of Village View Escrow in Redondo Beach, California, turned into a two year ordeal that ends with lawsuit settlement. Marsico checked the accounts in the morning as she has done every morning and found that cyber crooks had stolen approximately half a million dollars. Two dozen transfers to 20 recipients whose names and address were not recognizable to Marscio. At first thought Marsico thought it was a mistake but, later found that Village View Escrow and Professional Business Bank was a victim of a cyber heist. Marsico later found out that Professional Business …show more content…

The investigation would have analyzed the risk factors by conducting an internal audit. The internal audit would have allowed them to detect the different channels in which money could be stolen and how the attacks could occur. For instance the risk factors would have shown the lack of security provided on the company’s bank account. Also, the fraud elements would have been identified, this would have enable them to know what measures the money may be stolen and what means of attack would be used. In this case the unauthorizations of financial transactions to twenty (20) different account without proper authorization. The financial forensic investigation would have also allowed the investigators to identify the type of cybercrime that can occur. They would have formulated an hypothesis through brainstorming. Then they would have analyzed the many solutions to the hypothesis. This is done by making interpretation of the evidence provided and evaluating with each hypothesis. Of which the hypothesizes that do not have enough data would be dismissed and the hypothesizes that have enough data would be analyzed more closely (Kranacher, Riley & Wells, …show more content…

In addition, Village View Escrow chose to sue Professional Business Bank for failing to protect its customers’ private information. Since the number one reason the cybercrime occurred was because Professional Business Banked failed to provide the proper security measures to secure customers accounts. Therefore, the bank is responsible in paying back all the funds that was transferred out of Village View Escrow’s accounts along with all necessary expenses that was relevant to the loss. Although the money can be recovered the reputation of the company from this loss cannot. Village View Escrow can recover from the loss of customers by focusing on assuring current and future customers that measures have been taken to secure their funds and that Village View Escrow is using the latest effective detection in technology to secure

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