Lisa DuBrock, a contributing writer for this website, wants to pass along an interesting article for your consideration. This article was written by John Dodge, and, focuses on a story which was published in a recent edition of Securities Industry News.
John Dodge, who is a freelance writer for the Bank Technology News, writes about and addresses some of the facts behind the Bernie Madoff’s Ponzi scheme.
This article basically arrives at the supposition that “…if “technologists” had replaced the proprietary systems with more modern and open computers, they would have invariably found the absence of data on countless stock trades that supposedly took place. In a sense, the preservation of old computer technology helped Madoff successfully go undetected for years until his massive Ponzi scheme collapsed on December 11, 2008.”
There is a great probability that there is a lesson here to be learned by all business continuity, risk management and contingency planning teams. Perhaps it is that sometimes the simple issues just get overlooked.
CLICK HERE to read the entire article which goes beyond the court records to construct an extensive picture of how Madoff actually operated: The systems and technology he and underlings used to create – or fake – the most detailed set of customer accounts underlying a fraud in the history of the securities industry and see if you find a lesson for your organization.