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Personnel management fraud

It is also called staff fraud, where the organisation may not suspect its employees but may face losses due to them. The biggest issue is that firms need to find a balance where they may have to investigate but cannot be intrusive. Employees commit such fraud when they assume their actions will go undetected. 

Sometimes, it happens when too much work pressure or threatening factors are involved. Some may have reasons, or they justify their actions.

Some of the common types are 

  • Taking leaves and working elsewhere

  • Abusing flexible working hours

  • Misuse of official time and misrepresentation or giving fake references.

  • A study finds internal control’s weakness leads to over 50 per cent of such cases. Often, small firms lose more than large ones, and prosecution referrals have declined over the past ten years.   

How To Protect?

Organisations should have a strict policy to overcome their actions. They should always thoroughly analyse the risks related to their business to find loopholes and vulnerabilities in implementing the work procedures. 

Furthermore, a culture of awareness and fraud prevention should be promoted, where everyone should take responsibility.  

Firms should conduct proper screening at the time of recruitment. In addition, they should provide training during induction and regular monitoring and integrate law enforcement at each stage and level of management. 

Finally, they should have proper whistleblowing procedures and get feedback from the staff in case of dismissal or other actions to reinforce the rules and discipline.

Date Published: Sep 18, 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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