Organizations of all types are prone to occupational fraud - an employee's deliberate misuse of the organization's resources for personal enrichment. Occupational fraud typically falls into two categories: (1) asset misappropriation, which involves employee theft or misuse of company assets (e.g., billing schemes, skimming, check tampering or payroll fraud); and (2) corruption, which involves an employee's wrongful use of influence in business transactions to procure improper benefits (e.g., bribes or kickbacks) to the employee.

Increasingly, organizations are victimized by another type of fraud known as social engineering. In these schemes, a third-party gains the trust of an employee to obtain confidential information (such as passwords) that allow the third-party to access the organization's internal resources and steal identities or money.

Occupational and third-party fraud are extremely costly, both in lost assets and in potential damage to an organization's image, reputation and credibility. Accordingly, every organization should take measures to detect and prevent fraud, including —

  • Training employees to recognize and be alert to the warning signs of occupational and third-party fraud;
  • Training employees to protect the confidentiality of the organization's data, equipment, records and passwords;
  • Encouraging employees to report co-worker and third-party fraud and misconduct, either to a supervisor or anonymously; and
  • Promptly and thoroughly investigating all such reports.

© WeComply/Thomson Reuters

Key Resources

For your convenience, ACC has compiled the following key resources to assist you in your compliance efforts.

For more try searching ACC's online library for "Fraud Awareness"

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