Get to Know Financial Fraud in Your Company!

Cheating or fraud is a case that often occurs in the company but is difficult to detect. Unfortunately, only a few business people care about the importance of eradicating fraud in the company. If it's a little off, then the company's money can be used up without making a significant profit. Therefore, you need to get to know these frauds or fraud.

Get to Know Financial Fraud in Your Company!

Who is the perpetrator of Fraud?

Based on its position, fraud perpetrators are divided into 3 types, namely:

1. Employee fraud (Employee Fraud)

Most fraudsters in the company are employees who are often trusters or people closest to you. Employee fraud can be in the form of payroll adornment (Payroll Fraud) such as excessive salary payments, embezzling funds (skimming schemes) which are usually for personal interests, and sales fraud and purchase in recording large books (Sales & Purchase Fraud) such as actions to increase or reduce income and expenses.

2. Cheating Management (Management Fraud)

Cheating Management or Management Fraud is a financial statement cheat conducted by the management to deceive investors. Forms of management fraud are very like embezzlement of funds, manipulation of financial statements, or bribery practices.

As the name suggests, the perpetrators of the Management Fraud usually have a high position in companies such as CEO (Chief Executive Officer), COO (Chief Operating Officer), or CFO (Chief Financial Officer). Even in some cases like the case of Lehman Brothers, a global financial service company that experienced large bankruptcy throughout American history, fraud practices often involved the company's audit, both internal auditors and audit firms such as Ernst & Young.

3. Third-party fraud (third parties fraud)

Third Parties Fraud or third-party fraud is a fraud that is often done by companies outside the company, such as the supply. Examples of frauds that are often done by the company are False Billing. The false billing provider will make you pay false bills by disguising as suppliers and opening fake accounts. Through various false reasons, they will convince you to spend money that should be accepted by Ankda Supplier to their account.

Characteristics of Fraud Actors

Finding fraud in the company is not difficult. The following are the main characteristics of fraud perpetrators who are easily recognizable.

1. Have a high position or hold a financial section

Like the type of fraud above, people who commit fraud usually have high positions or hold positions in the Ministry of Finance. Because it is too trusted and rarely controlled, they can change financial reports without your knowledge.

2. Often work overtime

Don't be too happy if you have employees who like to work overtime and rarely take leave. Not because you have to pay overtime or raise salaries. Cheating companies carried out by employees are often carried out at night when you are resting so that no one sees.

3. Like to work alone

Be careful if you have employees who like to work alone. Usually, employees who have a room or personal workplace are more susceptible to fraud. You can assess your employees when you approach or do a sudden inspection of their work. If they look uncomfortable or tense, then maybe something is hidden.

4. Luxury lifestyle

It's not easy for an employee to have a car or other luxury items. So, if you see a lifestyle change in your employees in just a few months, it's time for you to conduct an investigation, especially in the company's financial condition.

5. Having economic difficulties

Don't think that all fraud perpetrators are bad people. Even though good people can damage the trust of their superiors for the needs of the family or other important things. For example, an honest employee can steal company money for the cost of operating his child.

Now you have to know the types and characteristics of fraud in the company. Thus, you can remind yourself and employees to stay away from this illegal activity. Let's fight the cheating perpetrators and wake up clean and healthy companies!

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It's hard not to mean it can't be done. At present Internet-based accounting has emerged known as Cloud Accounting. With Cloud Accounting, you can save your data online so that the risk of losing data is very small. Data can be easily accessed whenever you need it. Because it is online, you can invite your trusted people to operate it. Thus, you can supervise their work as well as your financial condition.

What about costs? The operational costs of cloud accounting are relatively cheaper than traditional accounting systems. Simply pay operating costs per month and you can make financial reports instantly. You no longer need to worry about system damage or spend repair.