One of the things to bear in mind when talking about fraud is that while it is a catch-all style of phrase, there are many different types of fraud. This is why it can be useful to know the different types of fraud and see which ones you may be at risk of. Different people and businesses will find that certain frauds are more relevant to them than other types of fraud. If you are looking to make yourself more secure against the different types of fraud you can face, it is crucial that you take steps to familiarize yourself with different types of fraud.
Expense form falsification
This is a style of fraud that has plagued businesses for as long as expenses have been permitted. No matter what an employee feels as though they should earn or receive, there are rules in place for expenses and these rules need to be met. You will find that some of the most common types of expenses fraud include:
- Inflated mileage claims
- Inflated costs for entertaining or entertaining friends on company money
- Claiming for expenses that never actually occurred
You may think that one or two inflated expenses claims don’t really hurt anyone but for a firm that doesn’t have a lot of spare money, or for a firm with a lot of employees filling in a lot of expenses claims, you will find that these claims can cause a lot of problems.
Taking money from a company bank account
This is actually theft but depending on the way that the crime is undertaken, it can be seen as being fraudulent activity. This is an area where many businesses suffer, and it can be a galling crime to suffer from. This is because this crime is often undertaken by people who have been placed into a position of power and trust. To later find out that the person who was trusted by a firm was the one who actually stole from then can be very dispiriting and it can cast a shadow over a business for a lengthy period of time.
Sales figure manipulation
If firms provide bonuses for employees with respect to sales figures, there is an incentive for the employ to exaggerate what they achieve. When sales were logged in log books or by hand, there may have been more scope to commit this sort of act but even in a digital age, there are chances for people to manipulate their figures and hit bonuses. Bonuses are meant to be paid out in line with the business benefitting from additional sales. If a business ends up paying out bonuses without having received the bonus of additional sales in the first place, that business could find itself in trouble.
Stealing of stock
This is another type of business fraud that is well known and as long as businesses deal in physical goods, it is likely that there will be theft of stock, or at least there will be the potential for the theft of stock. Any item that can be sold on will be enticing to many people and again, these crimes are often ones that are opportunist. Each business deals with theft of stock on their own way and many businesses used to have some form of tolerance for stock theft but in the current economic climate, these margins are extremely thin so stock theft is likely to be noticed more readily.
When it comes to fraud, this is the sort of fraud that many people think of. This type of fraud can involve large sums of money and it can feature highly prominent officials of a firm, so again, it can be very serious. This is fraud undertaken at a corporate level and it can often be very complex.
These are some of the most common frauds that businesses can suffer from, and the most common frauds that people in employment will undertake. Anyone facing fraud charges of this nature will be facing very serious charges and it is important that they receive a good standard of support and representation. Anyone facing fraud charges relating to their current or previous employer needs to have the highest standard of representation at their side throughout the case.
It can be difficult facing charges of this nature, and emotions are likely to be running high, but this is why calling on an experienced and professional defence solicitor, who understands fraud, is vital.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.