Hi-Tech-Consulting

“Payment Fraud Widespread, Companies Say”
Financial Week (04/14/08) ; Johnston, Megan

More than 70 percent of companies polled by the Association for Financial Professionals (AFP) in their annual AFP Payments Fraud and Control Survey experienced attempted or actual payments fraud in 2007, showing barely any change over the previous year’s 72 percent. Larger companies were hardest hit, with 80 percent reporting fraud events compared to 58 percent for companies with revenue of less than $1 billion. Those companies that experienced fraud reported an increase in incidence of 30 percent compared to the previous year. Fraud costs companies and customers more than just the funds that are taken, because it also costs staff and customers time and expense for follow-up, says Arlene Chapman, AFP’s senior consultant in technical services and one of the study’s authors. Internal fraud committed by a company’s own employees, meanwhile, was responsible for fraud in two out of five companies surveyed. And despite an overall decrease in check volume, check fraud accounted for the vast majority of fraud cases, at 94 percent compared to 90 percent in 2007 and 71 percent in 2006. Most companies have taken measures to prevent fraud, with 88 percent distributing the responsibility for payments entry and approval among employees and 87 percent using anti-fraud technology such as tokens, digital certificates, and smart cards. Universal Payment Identification Code payments are popular, with volume increasing 730 percent in 2006 to $4.7 billion, the survey found.
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“Risk of Nuclear Attack on Rise”
Washington Post (04/16/08) P. B4 ; Sheridan, Mary Beth

The Senate Committee on Homeland Security and Government Affairs held a hearing April 16 to analyze the consequences of a nuclear attack on Washington D.C. Security experts speaking before the panel said that the risk of a nuclear attack on the U.S. is rising because of the growth of worldwide terrorist organizations and wider availability of nuclear technology. The committee looked at two different scenarios: a 1-kiloton nuclear device hidden in a suitcase and a 10-kiliton explosive hidden in a van. If they exploded near the White House, the smaller device would kill approximately 25,000 people and the large device would kill around 100,000. Almost every building within a half-mile radius would be destroyed and a lethal radioactive plume would drift over the city, most likely blown east by the wind. However, most city residents would survive the attack and the government can take steps in advance to save more people from a potential attack. The radioactive plume most likely wouldn’t reach the eastern edge of the city for 30 to 60 minutes after the attack, giving people time to escape from its path. One major concern is the stress such an attack would put on the local medical system. An expert estimated that 95 percent of burn victims would be unable to receive care because of a lack of specialized burn facilities. Overall, the entire country only has such facilities for 1,500 patients. The Department of Homeland Security recently conducted an exercise with the D.C. mayor and the governors of Maryland and Virginia on how to communicate with the public after such an attack. The district has many emergency communications tools, including a reverse 911 calling system and the Emergency Alert System.
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“California Hospital Faces Sanctions After Workers Wrongly Looked at Patient Records”
New York Times (04/08/08) ; Steinhauer, Jennifer

The University of California, Los Angeles, Medical Center could be fined or have its licenses taken away for not notifying the California Health and Human Services Agency after hospital workers inappropriately viewed the records of more than 60 patients, including those of Farrah Fawcett and Maria Shriver. The center became aware that medical records had been breached last May when The National Enquirer printed an article about Fawcett’s cancer before she had a chance to tell her family. After conducting an investigation, the center discovered that an unauthorized worker looked at 61 patient records, most of them belonging to celebrities or politicians. The center learned of another incident this past February in which multiple employees viewed Britney Spears‘ records; they have since been suspended or fired. Roxanne Moster, a spokesman for the center, said officials did not inform the California Health and Human Services Agency about the incidents because they believed that state law only required them to report medical errors. Various state and federal laws do give patients a right to their privacy, however, and now the agency, which oversees the licensing and certification of hospitals, has started its own investigation. “It is not a question of will we take action but determining what action to take,” said Kim Belshe, the agency’s secretary.
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Shoplifting Could Rise During Weaker Economy”
Capital (Annapolis, MD) (04/03/08) ; Arcieri, KatieA weakening economy could lead to an increase in shoplifting, according to experts. “It is cyclical as the economy gets better and worse,” said Barbara Staib of the National Association for Shoplifting Prevention. In 2006, retailers blamed 32 percent of their company’s inventory shrinkage on shoplifting, costing them almost $13 billion. There are several different types of shoplifters, including people who are just looking for an “adrenaline rush.” There are also a growing number of organized rings taking part in a low-risk, high-reward crime. Experts say that an increasing number of young people do not view shoplifting as a serious crime because it has been accepted by American culture. Experts recommend that businesses that have been victimized by shoplifting should hire extra employees to keep an eye on customers as they shop. However, many small businesses cannot afford to add more payroll in a weak economy.
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