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According to the Federal Trade Commission (FTC), the Consumer Sentinel Network received 2.4 million fraud reports in 2022, resulting in a consumer loss of nearly $8.8 billion. One key way to protect yourself and your business from fraud is through awareness. Take a look at the below common frauds and how to prevent them. Payroll Fraud: occurs when a person is inappropriately compensated for work or services they did not perform. Asset misappropriation - cash: occurs when an employee steals directly from a company. Asset misappropriation - personal spending and inappropriate expense reimbursement: occurs when an employee uses company credit cards and/or funds for personal expenses or submits expense reimbursement requests for non-business related or spending beyond normal business policy. Corruption: may be any action taken by an employee that is not made for the benefit of the company. Financial statentem: occurs when an employee or group of employees working together manipulate financial records. Inflating assets, revenue, or net worth or minimizing the appearance of debt or expenses all are considered acts of financial statement fraud. Click here for more insight on each of these areas from ECA member firm The Bonadio Group.
According to the Federal Trade Commission (FTC), the Consumer Sentinel Network received 2.4 million fraud reports in 2022, resulting in a consumer loss of nearly $8.8 billion. One key way to protect yourself and your business from fraud is through awareness. Take a look at the below common frauds and how to prevent them.
Click here for more insight on each of these areas from ECA member firm The Bonadio Group.