An astounding 60 percent of companies reported actual or attempted fraud in 2013. Fraud costs an organization an estimated five percent of lost revenue each year. But who is committing fraud in the first place? Unfortunately, it’s usually an inside job.
The most common department for a perpetrator of fraud to work in is accounting. Fraud perpetrators are usually low level employees making less than $50k per year. There are various methods that can be used to perpetrate fraud within an organization. Businesses can misclassify workers to avoid paying taxes or they can bill a vendor too much for a service. Employees can create ghost employees or alter the amounts on checks.
If you’re concerned about fraud in your organization, you need to be better informed about what kinds of fraud are the most common. This infographic outlines basic information about fraud within organizations. Be sure to share it within your company so everyone can be on the lookout for fraud.