Preventing Computer Frauds:
The different measures that significantly reduce the computer frauds are:
i. Make fraud less likely to occur.
ii. Use proper hiring and firing practices.
iii. Manage disgruntled employees
iv. Train employees in security and fraud prevention measures.
These are briefly discussed below:
i. Computer consultants are of the opinion that the most effective method for system security is to rely on the integrity of company employees. organisation should take steps to increase employee integrity and reduce the likelihood of employees committing a fraud.
ii. A manager’s most important responsibility is to hire and retain honest people. Similarly the company should be very careful when fixing employees. To prevent sabotage or copying confidential data dismissed employees should be removed from sensitive job immediately and denied access to computer system.
iii. Many employees who commit fraud are seeking revenge or justice for some wrong they perceive has been done to them. Hence company’s should have some procedures to identify them and help them.
iv. Employees training and education is the most important element of any security program and fraud is much less likely to occur in an environment where employees believe that security is every one’s business. To develop this type of culture, a company should educate and train their employees in the following areas.
(a) The employees should be taught the importance of security measures and made them to take seriously.
(b) Employees should be taught that they should not leak out confidential information over phone without knowing for sure who is calling.
(c) Employees should be made aware of fraud, its prevalence, and its dangers. They should be taught why people commit fraud and how to deter and detect it.
(d) The company should promote its ethical standards in its practices and through company literature such as employee handouts Acceptable and unacceptable behavior should be defined so that employees are aware of a company’s ethical position.
(e) Employees should be informed of the consequences of unethical behavior (reprimands, dismissal, prosecution, etc). For example, employees should be informed that using a computer to steal or commit fraud is a federal crime and anyone so doing faces in mediate dismissal and/or prosecution.
(f) Educating employees in security issues, fraud awareness, ethical consideration and the consequences of choosing to act unethically can make a tremendous difference.
(g) Software license is an important point that the management should have in mind. They should make sure that there are enough licenses to meet user demands and that there are not more users than licenses. This protects them from software piracy lawsuits.
(h) All employees, vendors and contractors should be required to sign and abide a confidentially agreement.