Is occupational fraud or third party fraud more common?
All recent studies show that there is more occupational fraud than third party fraud – about 70% of the total fraud discovered. The suspected reasons are: • there are a lot more employees who have the opportunity to commit frauds against their employers than there are third parties to commit frauds against other people; • the employee is already in a position of trust through their position of employment (to some extent), compared to a third party that must usually win the trust of their victim before they can commit a fraud; • some people are more willing to commit a fraud against a large business that they believe can afford the loss, than against an individual who may lose their live savings. • some business expect an amount of loss through theft and employee know that small losses will not be investigated.
