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James T. Foggie wrote a new post on the site MIS5208 Spring 2017 7 years, 8 months ago
After reading the text readings and reviewing the lecture slides from last week, the 2016 story of the Wells Fargo scandal came to mind. I wondered which risk factors for fraud would be more prominent when […]
Nice shared. Wells Fargo comes to my mind which is the last year scandal due to lack of internal control. As most of us know, Wells Fargo has recently disclosed that a large scale fraud has taken place within the company, which resulted in 5,300 employees being fired or about 2% of its workforce. Employees incentivized to open new accounts, such as credit and debit cards, simply started making up customers or adding accounts to existing customers without their consent.The banking giant has fired almost two percent of its entire global workforce for falsely opening accounts for customers in order to game compensation systems. They will also pay a fine of $185 million to the Consumer Financial Protection Board.