Media's Effect On Fraud

1984 Words8 Pages
Media Influences Fraud INTRODUCTION The SEC defines business fraud as “The use of one’s occupation for the personal enrichment thought the deliberate misuse or misapplication of the employing organization”. Since the pilgrims landed in America in 1620, business fraud has flourished in America. The earliest fraudsters were Colonial era snake oil charmers who claimed they had the cure-all for any medical problems, but disappeared after taking your money and handing you a useless vial of oil (Partnoy 1). Blatant fraud flourished until the emergence of telecommunication and mass media allowed people to warn others about fraud schemes to which they had fallen victim. Although fraud still exists in America, the media has exposed the damage fraudsters cause and stimulated the people of the United States to pressure their congressional representatives to enact new legislation bringing stricter laws and harsher penalties for perpetrators of business fraud. THE MEDIA INFORMS THE PUBLIC OF THE DAMAGE FRAUD CAUSES In the most recent Report to the Nation by the Association of Certified Fraud Examiners (ACFE), total losses lost to fraud in just one year, 2008, was approximately $994 billion (Association of Certified Fraud Examiners 4). However, more important than the dollar amount, is the emotional damage that fraud causes. Media sources: television, newspapers, journals, magazines, and radio are effective in communicating the extent of harm by interviewing victims, following up on court cases, and helping us realize the extent of the damage. Because it is difficult for people to identify with numbers, which are abstract measures, people do not realize the destruction caused by monetary losses. One way the media makes people understand this damage is through television news shows. CNBC’s American Greed, which first aired June 21, 2007, allows a nationwide audience

More about Media's Effect On Fraud

Open Document