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Asset misappropriation fraud

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

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

In certain cases, they deceive or lie about their educational qualifications or work experience to get a job. The organisation must take steps to stop it as it initiates a culture of cheating. 

How To Spot It?

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

  • Anyone who suspects such activity 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 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 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 the police to ensure the employee involved in such crimes does not practice the same at other places.

Date Published: Sep 11, 2023

Types of fraud

A-Z of fraud

To help understand which fraud you've been affected by, we've categorised them into an alphabetical list.

What is fraud and cyber crime?

Cybercrimes can be of two types. First, it can be cyber dependent, where the fraudsters use online devices to convince the victim to accept their offers.

Advance fee fraud

If you are trying to get a loan for a house or a car, they ask to meet the provider to get the financing arrangement and pay the finder's fee in advance.

Corporate fraud

Corporate frauds can be complicated, committed either by the firm or an individual. Nevertheless, it mostly involves cheating where the employee or the firm.

Individual fraud

There are many types of individual frauds related to advance fees, investments, insurance brokers, bogus tradespeople, Ponzi schemes, pension liberation.

Online fraud

Hence the number of cases of online fraud is increasing each year, and most such cases include – account takeover, direct frauds, or scams related domain names.

Identity fraud and identity theft

The criminal uses the stolen identity of another person living or deceased to conduct unlawful activities like obtaining goods or services in another's name.

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