Fraud, Corruption, Theft, Misappropriation, And Fraud

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There is no specific definition for fraud if looked at from different perspectives. The term fraud is used to describe acts such as deception, corruption, theft, misappropriation, false presentation, bribery, fault partnership, forgery etc. Some may even describe fraud as practical process of deception to gain an advantage, or to cause loss to another entity or individual. While some people might not even anticipate to commit fraud, others might do so if they contemplate they have a way to be covert. In a business environment, some frauds occur because of system weakness. Some other reasons might be, “too much trust has been placed in one individual with no effective separation of duties”. (Fraud Prevention, 2014) . “Failure to follow proper control procedures” (Fraud Prevention, 2014) . Organizations can be exposed to the risk of fraud in several ways, ways which can be divided into three categories; internal fraud, external fraud, and collusion. An overhead definition of internal fraud is that it can be classified as deceptions created by an individual or individuals inside the organization that benefit them and results in loss or the organization. External Fraud can be defined as deception and theft but is carried from outside of the organization. Collusion can be described as two parties working together, internal and external, to gain financial advantages/benefits from the organization. There are several ways that can help to prevent fraud and companies should focus on
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