COMMON FRAUD SCHEMES

Presented by: TRIXIA :)

ASSET MISAPPROPRIATION
Involves

stealing cash or assets from the organization. third parties or employees abusing their position to steal from an organization through fraudulent activity.

Involves

TYPES OF ASSET MISAPPROPRIATION FRAUD

Embezzlement

by manipulating accounts or creating false invoices. Deception by employees. False expense claims. Payroll fraud by diverting payments or creating fictitious ghost employees. Data theft and intellectual property theft.

SKIMMING
cash

is stolen from an organization before it is recorded on the organization's books and records.

DISBURSEMENT FRAUD
a

person causes the organization to issue a payment for fictitious goods or services, inflated invoices, or invoices for personal purchases.

EXPENSE REIMBURSEMENT
an

employee is paid for fictitious or inflated expenses.

PAYROLL FRAUD
fraudster

causes the organization to issue a payment by making false claims for compensation.

FINANCIAL STATEMENT FRAUD

misrepresentation

of financial statements, often by overstating assets or revenue or understating liabilities and expenses.

INFORMATION MISREPRESENTATION
providing

false information, usually to those outside the organization.

OTHER FRAUDS:
Corruption Bribery Conflict

of interest Diversion Tax evasion