NCJ Number
112144
Journal
Security Management Volume: 32 Issue: 6 Dated: (June 1988) Pages: 75-77
Date Published
1988
Length
3 pages
Annotation
Public utilities are extremely vulnerable to the consequences of fraudulent activities because they are scrutinized by their own investigators, regulatory agencies, and the public.
Abstract
Most fraudulent activities fall into the broad categories of embezzlement and misrepresentation. Embezzlement, an internal threat, is usually motivated by the offenders' personal difficulties, such as indebtedness, job stress, or substance abuse. It is facilitated by increased opportunity associated with poor preemployment screening, lack of ethical leadership, and lax policies and in-house security. Rationalization of the crime is common. Misrepresentation, an external threat, may involve contractors who bill for undelivered or inferior goods and services or who overcharge for goods and services. Customers may use misreprsentation to avoid paying for past or future services. Using fictitious identification is the most common form of customer fraud. Investigative units and internal audits are essential to detecting and deterring fraudulent conduct, and both methods should be used in combination. Criminal prosecution, civil suits, personnel policies, employee screening, contract administration, and quality assurance are some of the remedies to be considered in correcting fraudulent conduct.