Signs of Fraud
Fraud can be divided into three categories, namely employee fraud, management fraud and external fraud. The best examples of management and employee fraud are:
- inventory theft,
- identity theft,
- corruption,
- collusion and conspiracy,
- expense account manipulation,
- kickbacks,
- purchases for personal use (especially on company credit cards),
- misappropriation of cash.
The most frequently exposed types of external fraud include
- false representation,
- forged invoices,
- patent encroachment and
- secretive payments such as bribes and undue commissions.
Fraud Indicators - Some Warning Signs
- stock reconciliation problems,
- employee always working late,
- employee reluctant to take leave,
- unexplained wealth or living beyond apparent means,
- sudden change of lifestyle,
- customer complaints of missing statements and unrecognised transactions,
- new staff resigning quickly,
- staff under stress without a high workload - marked personality changes,
- cosy relationships with suppliers/contractors,
- suppliers and contractors who insist on dealing with just one individual,
- escalating costs with no explanation,
- employees with external business interests
Contact us when you are suspicious of fraudulent activities in your company. We have experienced private investigators to increase the success of a fraud investigation.