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A Note of Caution Relating to Credit Fraud
The fact that there are indications of credit fraud is not proof that a fraud is being perpetrated. Warning signs are just warnings. It is essential to recognize the important difference between a suspicion of fraud, and evidence of fraud. For example, assume that a customer files for bankruptcy protection after placing their first order and before making their first payment. It might be the case that the creditor company is the victim of deliberate fraud. On the other hand, it may simply be bad luck and bad timing for the creditor company.
Changes in the law associated with credit fraud and the Sarbanes Oxley Act have increased the penalties for financial fraud. This does not mean that fraud cannot or does not occur. It only means that the penalties for those convicted of fraud are now far more severe.
Copyright 2010. Michael C. Dennis. All Rights Reserved