Recognizing and Reporting Corporate/Business Fraud in the Workplace

[Today’s guest post is courtesy of Andrew Miller of]

Corporate fraud must be recognized and reported.
Corporate fraud must be recognized and reported.

Pursuing a career in the field of business is a popular choice for many young men and women entering the workforce. Unfortunately, getting ahead in this industry can often prove to be quite challenging—especially for those who wish to succeed, while still maintaining high ethics and values.

While there are a number of ways in which corporate and business employees can commit egregious acts, participation in fraud is one of the most severe. Individuals who wish to stop this activity from occurring should have a basic understanding of the activity itself, as well as signs of corporate fraud, and how it can be reported.

What is Corporate/Business Fraud?

Before an individual can report corporate or business fraud, he or she must possess a solid comprehension of the activity. Traditionally, corporate fraud is defined as an activity in which one or more people intentionally make a decision or perform a task that provides personal gain to them, and damage to the corporation or business that was targeted.

While there are a number of different ways in which an individual can engage in corporate or business fraud, the use of mail, phone, Internet, and wireless medias are most common. Some estimates suggest that most organizations lose approximately five percent of their annual income to employee fraud each year.

Signs of Corporate/Business Fraud

So how can an individual stop corporate or business fraud from occurring? Are there specific signs of the activity that one can watch out for?

In fact, according to Cima Global [PDF], there are certain signs that may alert concerned employees to the potential for corporate or business fraud. Among these include:

  • the absence of an anti-fraud culture
  • limited employee supervision
  • unusual vacation practices
  • refusal to delegate tasks
  • frequent large cash transactions
  • inadequate screening and recruitment processes
  • limited job segregation
  • poor internal documentation

Any of these activities may be a red flag that a business or corporation is at risk for the development of fraud.

Employees who are interested in learning more about the signs of business or corporate fraud may want to consult with an expert in the field of business administration, such as lawyer, business professor, or corporate administrator.

Any of these professionals can help you recognize corporate/business fraud in the workplace.

How to Report Corporate/Business Fraud

While recognizing that corporate or business fraud may be occurring, reporting the activity is quite another. In certain cases, employees may be hesitant to discuss the matter out of fear for retribution.

Individuals who are interested in reporting criminal behavior should start by collecting as much evidence as possible, including names, dates, and the type of perceived fraud. Once adequate amounts of information have been obtained, employees should consult with the appropriate authorities.

Depending on the size of the corporation, the type of fraud, and the way in which the fraud took place, employees may want to expand their circle of discussion to include local police officers, a state attorney general, or even experts at the Federal Trade Commission.


About the Author:

Andrew Miller is an experienced Social Media expert and author. He has worked in marketing for over a decade and finds his passion in bringing concepts to life for the world to enjoy. He is also an avid blogger and currently working on a book with his wife about social entrepreneurship. He is a true Socialpreneur and finds that his goal in life is to be an agent for positive social change through both his writing and business endeavors.

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