A council 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 him. If the restaurant owner does not
cooperate, the restaurant cannot be opened for business and the negative publicity will drive
customers away. Faced with the potential economic loss, the owner makes the payment.
a) What type of fraud is this? (4 marks, maximum 150 words)
b) What controls can be implemented to prevent or detect the fraud? (6 marks, maximum 200
How is a credit check in the advanced technology system fundamentally different from a credit check
in the basic technology system? (10 marks, maximum 300 words)