Reliastar's Fraud Case Study: Mueller Case

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Communications and enforcement of integrity help to minimize and lower the elements of fraud triangle include pressure, opportunity and rationalization. An overall background check with financial status should have done on Mueller from ING before directly transfer him to the company from ReliaStar. Mueller was living on his check by check at ReliaStar; he also had college debts and a pregnancy wife. ING should have spotted a big change within the company’s environment when Mueller went from a normal living style to a new “luxury” lifestyle with high-ended cars, costly Las Vegas Trip, extravagant watches and expensive nightclub entertainment. ING must imply employee support programs to assist employee struggle with financial problems in this case, which is a main source can lead to fraud. Under ING, more business risks were rising after they acquired ReliaStar. Mueller was in a lead role on transitioning his older…show more content…
Authentication controls identify is on loose under ING since Mueller had the power to access either SUB or CW’s computer with password. This show a lack of secure and authorization control within the company. ERP controls ensure that only legitimate users can access the system, these including passwords, smart cards, and ID identifiers. In Mueller case, his fraud could have been prevented if the company had use multifactor authentication, perhaps by running both password and smart card interested into a card reader or scan their ID badge to identify the user. Additionally, ERP system control help to measure the value of transitions in manner that permit recoding their proper monetary value in financial statements. Every year Mueller took out a quite big chunk of money, the control system should help manager to pay more attention to larger transactions from vendors to make sure they are really
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