Question

What kind of fraud is possible in this scenario? By the customer? By the truck driver? By

collaboration between system users? What steps should Bill take to minimize the opportunity for
fraud?

Answer 1

Various types of fraud could occur in the scenario, including customer claims fraud, theft by the truck driver, and collusion between parties. To minimize these risks, Bill should implement GPS tracking, reconcile inventories with deliveries, audit records, and set clear anti-fraud policies.

Step-by-step explanation:

In the scenario described, various types of fraud are possible and can involve different actors:

• By the customer - False claims about product delivery, such as claiming that goods were not received or were damaged upon arrival when they were not.
• By the truck driver - Theft of goods, falsifying delivery records to hide theft or delivery of goods to incorrect recipients for personal gain.
• By collaboration between system users - Customers and truck drivers could collude to steal goods and split proceeds, or manipulate records to cover up their actions.

To minimize opportunities for fraud, Bill should consider implementing the following steps:

1. Use of GPS tracking to monitor truck movements and verify routes taken and deliveries made.
2. Implement inventory control systems that reconcile goods dispatched with goods delivered.
3. Conduct regular audits of delivery records.
4. Establish clear policies and penalties related to fraud to deter potential fraudulent behavior.