Do you think that no one in your business organization would be responsible for fraud? Or maybe you think that all your employees always have the best intentions for your business? If you do, let us tell you that you are mistaken. The truth is that occupational fraud is very real. If the situation or need arises, someone from your organization might attempt to commit fraud.
A study published by the Association of Certified Fraud Examiners, almost 5% of businesses revenue is lost due to fraud. This equals to $3.7 billion loss every year! We hope that your business never becomes a victim of occupational fraud. Our expert private investigator Markham explains what occupational fraud is and how to stop this from happening to your organization.
Occupational Fraud: What is it?
In simpler terms, when someone in your organization uses his/her position to misallocate the assets and revenue of a business organization, it is called occupational fraud. There are 3 types of occupational fraud:
- Corruption: This is where someone takes bribes to perform a certain task.
- Asset misappropriation: This is where someone tampers with organizational assets such as cheques or steals money.
- Financial statement fraud: This is where bank statements have assets or revenue that is overstated or understated.
Out of all these three frauds, 85% are asset misappropriation frauds. However, as per expert private investigator Vaughan, the most damaging type of fraud for any business is financial statement fraud. You might think why is that? Just imagine a higher-up executive hiding millions! This will affect the overall financial growth of the organization.
How to Stop Occupational Fraud?
Occupational fraud is extremely harmful for your business organization. Fraudsters will keep finding new ways to drain your resources. Before they bleed your organization dry, it is crucial to spot occupational fraud and stop it immediately.
There are two ways you can stop occupational fraud in your organization:
- You need to ensure that you hire a candidate who doesn’t have a history of fraudulent activities. You can carry out a thorough background verification for all the existing and new employees.
- Make sure to evaluate your organization’s framework and identify the weak spots. This will allow you to fix these issues thus reducing occupational fraud.
This information will be highly crucial for you to stop occupational fraud at your organization. However, if you suspect someone of fraud and need professional help, you can contact us at Integrity Investigations.
Our expert private investigator Ajax and team will track down the person responsible for fraud. They will also gather the required evidence to help you create a strong case in court.
Contact us now to know more.