Reference no: EM132610985

Question - Connie works in the Human Resource department of a company and is head of payroll. She needs some extra money and so she creates bank accounts in the name of employees who get fired or who leave the company voluntarily. Then she has those people stay on the payroll in order to have fraudulent payroll checks or bank transfers made to these people, but the checks or the transfer (direct deposit) goes to those bank accounts that Connie created in those names at the banks where she set them up (and she has her name on those account also - so she has access to the money). Unfortunately for the company this goes on for 5 years before the scheme is uncovered and Connie is caught.

Describe -

1. What type of fraud is this known as?

2. What do we call the employees that Connie was paying to accounts she controlled?

3. The fact that this took 5 years to catch indicates what?

4. Speculate as to what the company failed to do, in general.