Fraud
Fraud
Fraud is listed by the 2003 UK Threat Assessment issued by the National Criminal Intelligence Service as one of the seven most significant threats facing the world1. What is a Fraud? A fraud is when one party deceives or takes unfair advantage of another. A fraud includes any act, omission, or concealment, involving a breach of legal or equitable duty or trust, which results in disadvantage or injury to another. In fact, in a broad strokes definition, fraud is a deliberate misrepresentation which causes another person to suffer damages, usually monetary losses. Fraud is often considered a “civil” law violation, as well as a “criminal” law violation. Who commits fraud and why? It is generally accepted that 20 percent of the employees are honest. Another 20 percent are dishonest and don’t mind doing wrong. That means that the remaining 60 percent are potentially dishonest, that’s a total of 80 percent of employees that may be dishonest. To understand fraud you first have to determine the contributing factors to why people commit fraud. Some people commit fraud for the sport and thrill of it. There are other recognizable reasons why honest people may commit a breach of trust. Need is the most common reason. A desperate financial need is usually the cost of most frauds. Still some people commit fraud to pay for an elevated life style which otherwise they could not afford. Needs arise from a number of locations these include: drug or alcohol addiction, marriage break-ups, gambling debts, business losses, unexpected family crises and the desire to live a lifestyle far beyond ones means.
Fraud is costing society several hundred billion a year. Organizations lose close to 6 percent of annual revenue to fraud and abuse of social systems. On the average, organizations lose 9 dollars a day per employee to fraud, or on an average of fraudulent cases males received 185.000 dollars and females received 48.000 dollars. A study done by the insurance industry
Fraud is listed by the 2003 UK Threat Assessment issued by the National Criminal Intelligence Service as one of the seven most significant threats facing the world1. What is a Fraud? A fraud is when one party deceives or takes unfair advantage of another. A fraud includes any act, omission, or concealment, involving a breach of legal or equitable duty or trust, which results in disadvantage or injury to another. In fact, in a broad strokes definition, fraud is a deliberate misrepresentation which causes another person to suffer damages, usually monetary losses. Fraud is often considered a “civil” law violation, as well as a “criminal” law violation. Who commits fraud and why? It is generally accepted that 20 percent of the employees are honest. Another 20 percent are dishonest and don’t mind doing wrong. That means that the remaining 60 percent are potentially dishonest, that’s a total of 80 percent of employees that may be dishonest. To understand fraud you first have to determine the contributing factors to why people commit fraud. Some people commit fraud for the sport and thrill of it. There are other recognizable reasons why honest people may commit a breach of trust. Need is the most common reason. A desperate financial need is usually the cost of most frauds. Still some people commit fraud to pay for an elevated life style which otherwise they could not afford. Needs arise from a number of locations these include: drug or alcohol addiction, marriage break-ups, gambling debts, business losses, unexpected family crises and the desire to live a lifestyle far beyond ones means.
Fraud is costing society several hundred billion a year. Organizations lose close to 6 percent of annual revenue to fraud and abuse of social systems. On the average, organizations lose 9 dollars a day per employee to fraud, or on an average of fraudulent cases males received 185.000 dollars and females received 48.000 dollars. A study done by the insurance industry