Asset misappropriation fraud

It involves the appropriation or unauthorised control of assets by people responsible for maintaining them who exercises their powers to gain through actionable activities. It may involve a third party. 

Such actions, called insider fraud, can be performed by the firm's executives or the workers entrusted to hold and manage the assets. They can gain access to funds using bogus bills. Sometimes they steal secure data or intellectual property for individual gains. 

They deceive or lie about their educational qualifications or work experience to get a job in certain cases. The organisation need to take steps to stop it as it initiates a culture of cheating. 

How To Spot It?

• If the accounts are manipulated or fake invoices created, the employee claims false expenses or indulges in payroll impostors, data or intellectual property theft.

• If anyone suspects such activity, they should report it to ensure criminal investigation. Furthermore, the firm should immediately suspend them to prevent further losses, and they should start disciplinary actions to recover the stolen funds. 

• If the organisation finds any systemic failure, it should estimate the losses and seek restitution. 

How To Protect Yourself ?

• Check the CVs of job applicants carefully before hiring any new person.

• Use proper systems like unique identification and passwords for the employees and restrict employees' access to sensitive information.

• Impose clear duties and job rotation practices for workers.   

• Examine all the activities and check the bank statements carefully.

• Generate awareness to ensure rules are followed and impose zero tolerance for fraud. Have a clear plan in case a fraud is discovered. Report the crime to police to ensure the employee involved in such crimes does not practice the same at other places.