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THE MAIN REASON FOR A FOOL PROOF CYBER SECURITY IS TO PROTECT DATA AND GUARD AGAINST PRIVACY BREACHES.
It includes setting up of measures and processes that are intended to prevent cyber attacks and improve cyber resilience.Cyber resilience is an organisations,s ability to prepare, and respond to a cyber attack and to continue operation during and recover from a cyber attack.Thus cyber resilience is an evolving perspective that is rapidly gaining recognition.It is defined as the ability of an organisation to withstand and recover from deliberate attacks,accidents or naturally occurring threats or incidents.
(Reference: OUTLOOK-MONEY-FEBRUARY 2019)
Corruption is a term used to describe various types of wrongful acts designed to cause an unfair advantage .It can take on many forms,including bribery ,kickbacks,illegal gratuties,economic exhortations and collusion.
Main areas of Corruption are:
1.Bribery 2. Kickbacks
Bribery and corruption fraud examinations often are longer,deeper and broader than most internal fraud examinations.
Fraud examiners and law enforcement officers must conduct rigorous risk assessments before they begin corruption fraud examinations.Bribery and corruption fraud examinations often are longer deeper and broader than most internal fraud examinations.
Typical example of corruption fraud is :
US Navy corruption on The High Seas......:Fat Leonard"-Leonard Glenn Francis-$35+Million Corruption.
Madoff Ponzi Scheme:
More than 8000 Investors are mislead by this Ponzi Scheme .The amount defrauded is about to $1.2 Billion in the Ponzi scheme.
Bernard Madoff is now serving a 150 year prison sentence,after a nine year Investigations and trial.
At the age of 22 in 1960 ,Madoff first started a securities brokerage firm with his father in law.From 1980's he started ,investment management division.He first started scheme as a "Legitimate" investment scheme.But by 1990s admitted it is a Ponzi scheme,promising and paying high returns by making the payments from the monies collected from others, with the same promises.He employed a very small accounting firm to manage and manipulate the monies and if any Investor is curious to know more about his scheme etc,he discouraged them from taking as his client and thus barred such inquisitive investors.He never used to outline his strategy of accomplishing his objective of paying high returns on investment.
Madoff problems started in 2008, when there was financial crisis in the markets.Investors started to pull out their investments with Madoff,and he found that there isnt enough cash to pay off the investors.At that time he had about $200 Million when his dues were about $billion dollors.
At that time ,he confessed to his two sons about his Ponzi scheme ,who in turn, turned him over to the federal authorities.
As reported in January 2019 ACFE article-The following are the reasons for the "Tip off":
1 .Madoff name was never on any marketing materials.
2. Madoff knew how to prey on human nature and take advantage of the weakness.
3.Also he took advantage of the Human Greed for very high returns.
4.He created a n illusion of Investment startegy when there is none.
5.High "Sharpi Ratio"which is a measure of the ratio off a unit of Return to a unit of Risk undertaken was very high .However the greedy Investors believed in The Holy grail and acted like "Moths before a Flame".
6.He used to tell how and why his Investors are special and they fell to his Special treatment hook,line and sinker..
7.He pretended success that no one suspected that he would cheat and steal monies.Thus he was very convincing and a big con artist of fraud.
8.He used to get very angry at any inquisitive investor and would tell that his strategy and scheme is on take it or leave it Black Box strategy .
9.Some investors (a guess) thought that if Madoff was caught he would go to jail but they get away with their illegally gotten returns.
10.During investigation several Red Flags were identified that would have brought the Ponzi scheme to light if the regulators had paid attention ,in time.One of the prominent red flag was Madooff's purpotrted Options Trading Size was 10 to 65 times the actual market size of those derivatives.
Madoff was arrested on the11th December 2008.June 29th 2009 Madoff was sentenced to 150 year's of prison sentence.
Time line of Madoff:
1.Born on 29th April 1938.at Queens,New York,USA..
2. 1960-BA Political Science from Hofstra University.
3.Started his firm with USD$5,000/ in 1960.Bernard L Madoff Investment Securities was founded.
4. Served as NASDAQ'S Chairman in 1990,1991 and 1993.
5.He had many High Profile Victims.
6.In 2008 till his fall ,controlled Billions of Investments
7.2013 Earned $40/ doing Prison labour!
8.16,518 Investors filed claims against Madoff.
9.A Madoff Victims Fund was opened to deposit the amounts recovered and deposited for distribution to the Victims.
10.AS AT 16th February 2016,Trustees announce that more than $11 Billion was of the 17.5 Billion Dollars ,principal amount was recovered to date.
11. Madoff had two sons-Andrew Madoff and Mak Madoff.Mark Madoff committed suicide on Dec 11th 2010, in his Manhattan apartment and Mark Madoff dies of cancer on September 3rd 2013.
Thus the sad end of the Master Con Artist Bernard Madoff.
Reference -FRAUD-Magazine Article-Feb_March 2019.