Big4Guy

I was going thorugh some material on fraud detection, analysis and control yesterday. Corporate fraud has become one of the most major sources of revenue leakage for companies. An interesting fact is that most fraud is perpretrated by employees instead of outsiders. This makes it all the more difficult to prevent and detect fraud. I have made a list of some of the common types of fraud. I hope to expand this list as and when I get more information and do some research on the various types of fraud. Some of the most common types of fraud are:

1. Diverting corporate funds for personal use.

2. Stealing company material, tools, stationary, supplies, equipment etc.

3. Not recording sales of goods sold and pocketing the cash.

4. Recording unwarranted cash discounts and pocketing the differential sum.

5. Falisfication of Payroll records

6. Creating credit balances on ledgers and converting the same into cash

7. Forging signatures on Checks

8. Paying self prepared invoices

9. Pocketing proceeds of scrap / waste sales

10. Falsifying cash book and accounting records.

I would like the readers comments on the above. In case you know of more types of fraud, please add it in the comments.

More on Fraud Types - Part 2 >>