Authorities unsealed the indictments of 15 people involved
in a Eurasian gang on Tuesday, revealing an organized crime ring that raked in
about $1.5 million through stolen credit cards and identity theft in the Las
Vegas Valley. The suspects are facing federal charges including trafficking and
possession of counterfeit devices, identity theft, production and use of
counterfeit devices and fraud. [A U.S. Attorney] said some of the suspects were
involved in “skimming,” an act by which a person can obtain credit
card information by running the card through a handheld counterfeiting device.
The gang members would have people working in restaurants, bars and smoke shops
who would scan a customer’s credit card on a legitimate machine and then swipe
it again with a counterfeiting device.

Suppose the Las Vegas Review-Journal contacted you for some
feedback on the article, Prepare a response to the following questions:

a. What is internal control?

b. What type(s) of risk are indicated by this situation?

c. What internal controls would you recommend to address the
risks?