Different Types of Business Fraud You Should be Aware Of

Corporate fraud can be any fraud committed against a business.Fraud impacting businesses can be both general frauds that target any business, to sector specific frauds. You should know the type of frauds and how they are executed so that you may know the tactics of the scammers and prevention ways to be secured on your part.

Here enlisted are the most common top 20 business fraud:

• Account takeover- An account takeover occurs when a fraudster pretenses as a genuine customer, gains control of an account and then makes unauthorized transactions.

• Application fraud- Application fraud is when swindlers open an account using fake documents under someone else’s name.

• Bankruptcy-related fraud- Fraud relating to bankruptcy and indebtedness can involve companies fraudulently trading instantaneously before being declared bankrupt

• Betting scams- Betting fraud ensues when you are offered of inside information that guarantee you profit from gambling.

• Business directory fraud- Business directory fraud is when a business obtains a form in the post, by email or fax that offers a free listing in a business directory.

• Charitable publication scams- When a telesales agent calls a business selling advertising space in a bogus publication for a apparently good cause then it is charitable publication scam.

• Cheque fraud- Cheque fraud is a type of business fraud that relates to any illegal use of cheques to gain or borrow funds.

• Cheque overpayment fraud- Cheque overpayment fraud is when a fraudster pays a business for goods or services by a fake cheque. The cheque is usually made for a higher amount than the actual value.

• Domain name scams- Business fraudinvolvinga website domain name that allow fraudsters to offer businesses a first refusal on a domain name, saying that someone else is in purchase procedure.

• Exploiting assets and information- This business fraud occurs when assets of an organization are used for unofficial purposes.

• False accounting- False accounting business fraud happens when company assets are overstated or liabilities are understated in order to make a business seem economically stronger than it actually is.

• Fixed line fraud- Fixed line fraud happens when fraud is committed against telephonic companies.

• Government agency scams- Government agency scams are when fraudsters send out official letters or emails by the name of some government agency to ask for money or personal information.

• Insurance fraud- Insurance related frauds happen when false assertions are made to insurance companies.

• Pyramid scheme fraud- Pyramid scheme fraud involves an unsustainable business which rewards people for joining others into a business that gives a non-existent or worthless product.

• Office supply scams- Office supply scams happen when telemarketers trick employees into gathering or paying for office stuff or stationery.

• Intellectual property fraud- Intellectual property fraud is stealing company’s intellectual data and information via illegal means.

• Procurement fraud- Procurement fraud is any fraud relating to a company purchasing goods, services or commissioning construction projects from third parties.

• Payment fraud- Payment fraud is a business fraud that involves falsely creating or distracting payments.

•     Receipt fraud- This fraud is committed by the employee of the company. It could happen when incoming cash or cheques are stolen, or when the accounts of the amounts owed by customers are accustomed in return for cash rewards or other incentives.

All these scams and business fraud are considered as illegal and there are different governing agencies for the same. Should youbecome trapped, you should know the legal procedures to report the offenses to them. Stay Alert… Stay Safe!