Asset misappropriation fraud

It involves appropriating or unauthorised control of assets by people responsible for maintaining them who exercise their powers to gain through actionable activities. It may involve a third party. 

The firm's executives or workers entrusted to hold and manage the assets, called insider fraud, can perform such actions. They can gain access to funds using bogus bills. Sometimes, they steal secure data or intellectual property for individual gains. 

In certain cases, they deceive or lie about their educational qualifications or work experience to get a job. The organisation must take steps to stop it as it initiates a culture of cheating. 

How To Spot It?

• If the accounts are manipulated, or fake invoices are created, the employee claims false expenses or indulges in payroll impostors, data or intellectual property theft.

• Anyone who suspects such activity should report it to ensure criminal investigation. Furthermore, the firm should immediately suspend them to prevent further losses, and they should start disciplinary actions to recover the stolen funds. 

• If the organisation finds systemic failure, it should estimate the losses and seek restitution. 

How To Protect Yourself?

• Check the CVs of job applicants carefully before hiring any new person.

• Use proper systems like unique identification and passwords and restrict employees' access to sensitive information.

• Impose clear duties and job rotation practices for workers.   

• Examine all the activities and check the bank statements carefully.

• Generate awareness to ensure rules are followed and impose zero tolerance for fraud. Have a clear plan in case a fraud is discovered. Report the crime to the police to ensure the employee involved in such crimes does not practice the same at other places.