WHAT IS FRAUD?
“Intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right”
More simply put, fraud is an intentional act, for financial or personal gain
Fraud against companies may be committed by an employee or an external party
Qs: What does fraud mean to you?
Add:
We’ve all heard about fraud cases, typically big names that are in the news where millions of dollars are involved, but fraud also happens at every company, in smaller amounts that may go unrecognized for years
Former and current employees (called knowledgeable insiders) are much more likely than non-employees to perpetrate frauds (and big ones) against companies. Largely owing to their understanding of the company’s systems and its weaknesses, which enables them to commit the fraud and cover their tracks. Organizations must utilize controls to make it difficult for both insiders and outsiders to steal from the company.