Вы находитесь на странице: 1из 20

Fraud in The Workplace

How Honest is Our


World

How Honest is Our


World

Fraud is:
Any illegal act characterized by deceit,
concealment or violation of trust. Perpetrated
by individuals, parties and organizations; to
secure personal or business advantage.
[The Institute of Internal Auditors (IIAs) ]
Deception deliberately practiced with a
view to gaining an unlawful or unfair
advantage
[Websters Revised Unabridged Dictionary]
Fraud is any intentional act or omission
designed to deceive others, resulting in the
victim suffering a loss and/or the perpetrator

ACFE FRAUD CLASSIFICATION

Source: Association of Certified Fraud Examiners

What is Workplace
Fraud

Source: ACFE 2010 Report to the Nations on Occupational Fraud and Abuse

Types of Fraud Explained Financial


Statement Fraud

Types of Fraud Explained Bribery &


Corruption Fraud

Types of Fraud Explained Asset


Misappropriation Fraud

Who Commits Workplace Fraud

Source: ACFE 2010 Report to the Nations on Occupational Fraud and Abuse

How is Workplace Fraud Discovered

Source: ACFE 2010 Report to the Nations on Occupational Fraud and Abuse

Pick the Fraudster

Sajata Sue Sachdeva Age


40
$34.5 Million over 12 years
Chief Financial Officer
Publically Traded Head-Phone
Mfg

Darryl J. McCauley Age 43


$13.8 Million over 2 yrs
Celebrity Manager & Publicist
Comedian (and brother) Dane
Cook
Vacations, Cars, Restaurant,

Melissa G. King Age 50


$42.6 Million over 7 yrs
Employee Benefits Manager
Sandhog Local 147
Retirement Fund
Vacations, Cars, Jewelry,

Frauds Cost

What is behind Workplace Fraud

What is behind Workplace Fraud

Is it Fraud?
A company owns a pipeline segment located in a
drought-stricken area. The area has been under drought
conditions for three (3) years. Historically, maintaining
the pipeline segment has been expensive because of the
numerous flood conditions. The company uses the
drought to its advantage and initiates a sale of the
segment. Although the acquiring company performs a
site inspection, the drought conditions result in the
historical flooding issue not being detected. Since the
problem was not found in the inspection the company
selling the asset decides to keep quiet and enjoy a
Deliberate
hiding,
non-disclosure,
suppression
a
higher
selling
price than
they wouldor
have
received of
if the
material
fact or
circumstance
(which one is legally or
flood
condition
was
known.
morally bound to reveal) with intent to deceive or
defraud in a contractual arrangement.

Is it Fraud?
You are driving your car and get hit by an inattentive
driver. You take your car to the repair shop and they give
you a quotation to get the damage fixed. The insurance
company approves and pays the claim. You really didnt
expect to repair the damage, instead you will just keep
the money and not have the vehicle fixed. After all it
drives OK and you dont care about a little damage here
and there.
Automobile insurance is generally a contract of
indemnity. The principle of indemnity is the principle
of restoration after a loss. It restores the injured party
to the original position he was in before the loss
occurred.

Red Flags for Fraud

How to Lessen Fraud


Vulnerability

What if you Suspect


Fraud