A city health inspector threatens to close down a restaurant by issuing a fake health

violation notice if the owner does not make a financial payment to the inspector. If the

restaurant owner does not cooperate, he will not be able to open for business and the

publicity will drive away his customers permanently. Faced with a threat of economic loss, the

owner makes the payment.

1.What type of fraud is this?

2.what controls can be implemented to prevent or detect the

fraud?