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In the early days of computers, Chris Schuler was a very enterprising young man who, while attending UCLA, was also conducting a major fraud against

In the early days of computers, Chris Schuler was a very enterprising young man who, while attending UCLA, was also conducting a major fraud against Continental Telephone and Telegraph Company (CT&T). At the height of his fraud in 2015, he was collecting approximately $30,000 a day from CT&T. In total, it was estimated that he stole as much as $900,000 from CT&T. Chris's fraud was fairly simple in concept, but he did work very hard at it. In 1990, he began a legitimate company refurbishing phone equipment for CT&T. As a supplier to CT&T, he became familiar with some of their operations. He also spent much time digging through dumpsters at CT&T and was able to salvage many reports that helped him understand the inventory and ordering systems. He purchased a telephone truck at an auction, and since he was a valid supplier to CT&T, he had keys to the loading dock. He began tapping into CT&T's touchtone ordering system, ordering equipment to be dropped off at certain locations. Using his truck, he would pick up the equipment and sell it, either to CT&T or to other companies, as refurbished equipment. His knowledge of computers and CT&T systems allowed him to alter their programs to erase any traces of his illicit activity. His operation became so large that he needed employees to assist him. One of his employees became disgruntled and tipped off police to Chris's illegal activities in 2016. Chris was convicted of grand theft, burglary, and receiving stolen property and served 40 days in jail, with a threeyear probation. He eventually became a computer security consultant

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List and describe internal controls from this chapter that may have helped prevent or detect Chris Schuler's fraud. Keep in mind that this case occurred before there was an internal and large company computer networks.

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