Asset Misappropriation Fraud Examples

Asset misappropriation fraud happens when people who are entrusted to manage the assets of an organization steal from it. Asset misappropriation fraud involves third parties or employees in an organization who abuse their position to steal from it through fraudulent activity. It can also be known as insider fraud. This type of fraud can be committed by company directors, or its employees, or anyone else entrusted to hold and manage the assets and interests of an organization.
Asset misappropriation fraud could include any of the following:
• Embezzlement, where accounts have been manipulated or false invoices have been created.
• Deception by employees.
• False expense claims.
• Payroll fraud, where payments have been diverted or fictitious,