NEWS

Morning Security Brief: Fraud Trends, Police Layoffs, and Cybersecurity

By Sherry L. Harowitz

 

► Anonymous tips helped solve 14 percent of frauds, while only 10 percent were revealed thanks to whistleblowers, according to the latest report on white collar crime from KPMG, reports the U.K.'s the Guardian. "What should send alarm bells ringing across companies is a jump in the number of cases involving the exploitation of weak internal controls – up to 74% in 2011 from 49% in 2007," the Guardian writes.  The report is based on 348 investigations conducted by KPMG member firms in 69 countries.

► The Economic Policy Institute reports that cutting police to balance the budget is not effective. "Cuts to the police force of five high-crime cities in New Jersey actually cost 12.9 times more than the budgetary savings of eliminating the officers, when the cost of rising crime is factored into the equation," writes EPI.

► It might surprise some people to know that the U.S. Secret Service, mostly thought of as protecting the President, "has a long history of protecting American consumers, industries and financial institutions," as Pablo A. Martinez, deputy special agent in charge of the Secret Service's Criminal Investigative Division, told the Senate Committee on Banking, Housing, and Urban Affairs. Martinez, testifying on the Secret Service role in cybersecurity and financial data protection, noted that the agency's cyber efforts "led to the opening of 957 criminal cases and the arrest of 1,217 suspects in fiscal year 2010 for cyber crime related violations ...[and the] arrest of these individuals prevented an additional loss estimated at $7 billion dollars."

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