Business Fraud

What is Business Fraud?

Fraud in business 

Fraud is the deliberate breach of trust by an individual or company which results in embezzlement or misappropriation of assets or falsification of information which results then direct or indirect a benefit to the perpetrator.

 Types of fraud

Because fraudsters are  continuously innovative the list of types of frauds is virtually endless however we will shed lights on the most popular ones one way to be off today about a fraudster gimmicks to sign up for a newsletter.

Employee fraud 

Employee fraud is divided into3

1. Asset misappropriation

2. Corruption

3. Reporting fraud

Asset  misappropriation: This is the  theft of company assets by an employee it has various types and its discussed below.

  •  scheming: here the employee receives and steals  cash before it’s ever recorded.
  • Lapping scheme: This involves an employee illegally pocketing the receivable payments. he may right it off as a bad debt expense, he may also receive money from another customer to cover up the money he stole.
  • Unauthorized money transfers, billing and overpayments:

         This includes payments to fictitious suppliers and invoices, 

  • Check tempering techniques, forging cheques of the company.

         Cheque interception.

  •  Payroll fraud: this involves an employee cooking the books and stealing using the payroll system. This includes paying fictitious employees and ghost workers, paying at incorrect rates and unworked hours.



Learn the types of fraud and how to deal with them.