Financial fraud

Security and compliance management solutions company ArcSight Inc has launched an appliance that detects and prevents financial fraud, ArcSight FraudView, the company revealed on Tuesday.

ArcSight FraudView, unlike legacy fraud prevention technologies, correlates activity in multiple banking channels to detect sophisticated fraud schemes that span online, ATM, telephone and bank branch activity.

On Tuesday the Internal Revenue Service released guidelines to provide relief to the victims of the Madoff’s investment scam. Investors that lost their money with one of the most scandalous financial fraud in the history will be allowed to deduct losses to theft in the 2008 tax year and recover any taxes paid on nonexistent income.

On March 12 Bernard Madoff who is stigmatized everywhere as a perpetrator and a scammer that defrauded thousands of investors in a business that turned to be a Ponzi scheme pleaded guilty to 11 charges in a federal court in Manhattan.

"I operated a Ponzi scheme," Madoff told U.S. District Judge Denny Chin. "I am grateful for the opportunity to speak about my crimes." He expressed his regret for the damage he caused to people. "I knew this day would come," he said.

[img_assist|nid=11021|title=|desc=|link=none|align=left|width=78|height=100]There were 250,000 incidents of online financial fraud in 2007 - jumping by nearly 20 per cent from the year before, according to a new cybercrime report by Garlik.

The study also estimated that more than three and a half million online crimes were carried out, a rise of nine per cent from the previous year, with 84,000 cases of online identity fraud.