What types of fraud have a significant and detrimental impact on organizations?
The three main categories of fraud include: corruption/bribery, asset misappropriation and fraudulent financial statements. Fraudulent financial statements are the least commonly reported type of fraud, but the most costly per scheme. On the other hand, asset misappropriation schemes are the most commonly reported and least costly. Over time, these schemes can add up to severe financial impact. Often, under-the-radar fraudulent activity is not detected until serious damage has been done. Any type of fraud is a major risk for all organizations from both a financial and reputation perspective. That’s why assessing risk and developing controls to prevent internal fraud is paramount in today’s business environment. How can an organization reduce the risk of fraud? There are a variety of proactive fraud tools and techniques available to help deter and prevent fraudulent activity, including fraud prevention checkups, fraud risk assessments, data analysis focused on fraud risk factors, develo
