Corporate Fraud has been a looming evil for businesses in this day and age. With new advancements in technology, paper work, signatures and face to face meetings have become nearly obsolete. Previously, people went to the bank and personally got cheques cleared and accounts managed.
Now, all that is needed is an online customer account and every bank or company can operate their businesses from miles away. There is almost no contact between a client and the company employees.It is a daunting aspect where one or more individual can cause the company a heavy loss. The ones responsible can range from employees to customers. It does not matter who gives out information, but these days corporate fraud investigation is commonly conducted all over the globe.
Types of Corporate Fraud
Corporate fraud can have a multiple range of branches that are liable to investigation.
Bank fraud is the most common corporate fraud. Literally, it means to obtain money or assets owned by a company. Fraudulent posing is one of the most common ways to cheat companies and people out of their money.
Specific fundamentals of bank fraud remain the same, but some laws change in various places in the world.
Types of bank fraud included forged and altered cheques, accounting fraud, uninsured deposits, demand draft fraud, fraudulent loans, wire transfer fraud, payment card fraud, billing fraud etc. Employee embezzlement is another form of corporate theft. As employees of a company, people have access to their information and some feel little guilt in giving out the information to others.
They can start from small petty thefts to large scale embezzling that reaches the sum of millions. Some warning signs of stealing are missing documents, delayed deposits, disappearance of small sums of cash, duplicate payments and the employee leaving the work place repeatedly. Penalty for embezzlement depends on the value of the property or assets stolen. It can range from community service to jail time.
Vendor frauds are schemes where the scamming party manipulates a company account for their own gain. They fall into three main categories; billing schemes, bribery and check fraud. All these include employees using false documentation to access the money of a company and gain as much money as they can.
Furthermore, International trade of secrets is a theft in the corporate world where formulas, ideas, devices, processes or information is given to rival companies. If they do not give it out, they hold the information and keep it for extortion, using the information as ransom to make money from the companies they work for.
With computer forensics and data analysis professionals, it becomes easier to commence with fraud investigation. Their experience with technology can determine the locations of the perpetrators and even find out where the stolen information is being kept. This leads to the identity of the thief being discovered and caught.
Leaving a trail is something few scam artists and thieves can control. They always leave one clue or another, even if it is just anomalies in a bank account. Everything they do can be traced with the latest software and hence is easier to catch them.