(Solution Download) 1 Evaluate this case using the three elements of the


1. Evaluate this case using the three elements of the fraud triangle to identify the following:
a. Potential pressures for Chris to commit fraud.
b. Potential opportunities for Chris to commit fraud.
c. Potential rationalizations that Chris could use to commit fraud.
2. What are some of the symptoms that fraud potentially exists in this situation?
3. What could Jonathon have done to eliminate some of the opportunities for fraud?

Plutonium was an Internet start-up company founded in 1988 at the beginning of the technology boom. One of the largest problems for Plutonium was developing the technological systems necessary to support the rapidly expanding user base. Furthermore, due to the rapid expansion in recent years, many of its systems had been added hastily, resulting in poor integration and eroding data integrity. As a result, the CEO of Plutonium announced an initiative to integrate all systems and increase the quality of internal data. In compliance with this initiative, Plutonium purchased an expensive and complex billing system called Gateway, which would automate the billing for thousands of Internet accounts via credit cards. During the integration, Gateway, in collaboration with Visa, created a phony credit card number that could be used by developers and programmers to test the functionality and integration of the Gateway system. Moreover, this credit card number was fully functional in ?live? environments so testers and developers could ensure functionality without being required to use actual personal or company credit card numbers (the activity on this card was not monitored). The integration went smoothly; however, it created thousands of corrupt accounts that required fixing.

 







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