Final answer:
The correct answer is option 3. The fraudulent action of feeding false information into the accounting system to alter reported results is known as 'going around the accounting system'. Identity theft is an example of using someone else's information for illegal activities such as theft and fraud.
Step-by-step explanation:
When a fraudster feeds fictitious information into the accounting system in order to manipulate reported results, this is referred to as going around the accounting system. Such deceptive practices are part of fraudulent activities aimed to deceive stakeholders about the true financial status of a company or an individual. For instance, in identity theft or "True-name Fraud", a fraudster wrongfully obtains and uses a consumer's personal identification, such as social security numbers, or credit information without their permission. This information can then be used to commit further fraud, like draining savings accounts or incurring large debts by purchasing expensive items.
The manipulation of an accounting system by introducing false data is one facet of fraudulent activities that can have far-reaching consequences for businesses and individuals alike. It is crucial for both individuals and entities to protect their personal and financial information to prevent unauthorized use and potential fraud.