Spring 2014 issue of Horizons

CHAIRMAN'S CORNER

The Stakes Have Changed Today with Cybercrime by Jim Castellano, CPA, CGMA

R emember when computers operated on punch cards… a portable computer was as big as a suitcase and its screen the size of a 4” by 6” picture frame…portable phones consisted of a heavy unit with a handset tethered to it with a spiral cord?

Remember when crime involving theft only involved physical property or currency?

What happened?

What happened is that the incredible explosion in technological advancements continued to change our world in ways we could not even imagine just a decade ago. With the wonderful advances in technology also came ingenious techniques to steal valuable information by using the technology in devious ways. Hence, the emergence of an entirely new type of criminal engaged in cybercrime. The topic of cyber security is high on the agenda of most audit committees today and should be high on the agendas of management of most organizations. An effective enterprise risk management process can highlight the numerous areas vulnerable to those anonymous and sophisticated criminals intent on theft or destruction.

Jim Castellano, CPA, CGMA Chairman

The American Institute of CPAs (AICPA) recently published a paper titled “ The Top 5 Cybercrimes. ” The paper is intended to assist CPAs in public practice as well as in business and industry to understand “the nature of each crime, the manner in which it is committed and remedial steps that can be taken.” The paper can be found on AICPA’s website at www.aicpa.org or viewed at the link in the sidebar to the right.

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