Employee fraud is a significant problem faced by organizations of all types, sizes, locations, and industries. While we would all like to believe our employees are loyal and working for the benefit of the organization. There are still many reasons why your employees may commit fraud and several ways in which they might do it. Hence, strategies for fraud prevention are important in our organisation.
Types of Business Fraud
Fraud comes in many forms, but can be broken down into three categories: asset misappropriation, corruption, and financial statement fraud. Asset misappropriation, although least costly, made up 90% of all fraud cases studied. These are schemes in which an employee steals or exploits its organization’s resources. Examples of asset misappropriation are stealing cash before or after it has been recorded, making false expense reimbursement claims, and/or taking non-cash assets of the organization.
Financial statement fraud comprised less than five percent of cases but caused the most median loss. These are schemes that involve omitting or intentionally misstating information in the company’s financial reports. This can be in the form of fictitious revenues, hidden liabilities or inflated assets.....https://www.sowprofessional.com/five-strategies-for-fraud-prevention-in-your-busines