Bankrate, Inc: An Accounting Fraud Case Study

• In Event: In the Interest of Students

Abstract

Accounting frauds happen more and more often in today’s computerized accounting
landscape. Bankrate, Inc. fell victim to this activity in the second quarter of its’ 2012 fiscal year.
The company CFO, Vice President of Finance, and Director of Accounting were involved in the
scandal that included the improper booking of revenue. This begs the question of where the
company’s code of ethics, internal controls, and established strong “tone at the top” were. The
fraud case is one that led to serious legal implications for the company and the individuals
involved, affected the decisions of shareholders and potential investors, and shed a negative light
on the company that will be hard for Bankrate, Inc. to shake and recover from.

Authors

• Joseph Ryan Cahalan, Florida Southern College

• Whitney Temples, Florida Southern College

• Lynn H. Clements, Florida Southern College