Best Practical Guide: Organisational Fraud Prevention


The world is putting in its best efforts to become immune to the novel coronavirus.

However, will the time come when a business will be immune from fraud, scams, & other risks circumnavigating an organisation?

Employers across the globe are carrying out employee screening and conducting background checks - however, globally the fraudulent activities do not seem to be depleting.

As a part of your employee background screening process, merely confirming references from the resumes wouldn’t suffice to eradicate the fraud & risks lurking in your establishment.

What is the perpetual source of fraud happening? Is it limited to any geographical area or sector?

Let us uncover this and much more in this post. But first, let’s start from the basics.

What is Fraud?

As per The Department of Foreign Affairs and Trade (DFAT), fraud can be defined as, “Dishonestly obtaining a benefit, or causing a loss, by deception or other means".

In this definition, "benefit" refers to both tangible items, such as money or objects, and intangible benefits including power, status or information”.

A potential fraud source could originate from anyone starting from customers, suppliers, vendors, contractors, managers, executives, third parties, etc.

No country, sector, type, or size of the organisation is immune. Fraud is a critical issue accounting for losses in the form of money, fines, or merely can cost place to a brand or its market position.

It is hard to pinpoint the occurrence as it may arise from either inside and/or outside a company’s boundary.

Did You Know - You Can Improve the Fraud Control with A Background Screening Partner?

Overview of The Fraud Losses

Types of Fraud

There are many types of scams and frauds that are observed. Let’s have a bird’s eye view on some of the top scams by loss as reported by the

  1. Investment scams
  2. Dating & romance
  3. False billing
  4. Hacking
  5. Online shopping scams
  6. Remote access scams
  7. Identity theft
  8. Threats to life, arrest, or other
  9. Classified scams
  10. Inheritance scams

Types of Fraud in Australia

A key finding from the PWC report suggests that almost one-fifth of Australian respondents were asked to pay a bribe in the past 24 hours.

As per the survey conducted by PWC in the Global Economic Crime and Fraud Survey, here is a list of some of the most frequent types of fraud in Australia.

  1. Accounting/Financial Statement Fraud
  2. Antitrust Law Infringement
  3. Asset Misappropriation
  4. Bribery & Corruption
  5. Customer Fraud
  6. Cybercrime
  7. Deceptive Business Practices
  8. Human Resource Fraud
  9. Insider/Unauthorized Trading
  10. Intellectual Property (IP) Theft
  11. Money Laundering & Sanctions
  12. Procurement Fraud
  13. Tax Fraud

Begin your journey towards risk or fraud-free organisation by initiating a thorough National Criminal History Check for your employees.

Make KONCHECK your background screening partner for your business.

Let us have a look at the above-discussed crimes & frequency of overall experience shown in the below image.

What motivates a person to commit fraud?

This can be answered with the hypothesis of “The Fraud Triangle”.

The Fraud Triangle

The fraud triangle hypothesis was presented by Dr. Donald Cressey. It is a model that explains the elements causing someone to commit fraud. It constitutes 3 major factors, which in unison lead to fraudulent behavior.

KPMG Fraud Survey 2021

Do you think the recent Coronavirus pandemic paved the way for fraud & corruption before?

Well, the Australian businesses reported more gaps and vulnerability to organized crimes and fraud due to remote working. Moreover, there seems no light at the end of the tunnel for risks & frauds to be reduced soon.

The Total Impact & Consequences of Frauds

Frauds disrupt many things besides your bank statements. A detailed study on the impact of fraud helps companies to handle risks & frauds with more care.

The consequences of fraud are not just limited to people but may affect industries, entities, services, reputation, environment, and much more.

Let’s see the various kinds of impact a fraud or scam can have upon.

  1. Human impact
  2. Reputational impact
  3. Industry impact
  4. Environmental impact
  5. Security impact
  6. Financial impact
  7. Business impact & more.

Crimes, frauds, and scams cannot be completely eradicated from the face of the Earth. After all, it is a fight against dishonesty or loyalty.

We are thankful for the facts & figures from the following sources: -

Wrap Up:

KONCHECK can help organisations with on-demand background check services.

We are an ACIC accredited national police check provider delivering NCCHC certificates Australia-wide. Most of the police clearance certificates are delivered within 1-2 business days.

Get your national police checks Australia-wide whether you need National Police Check SA, National Police Check NSW, Police Check QLD, etc.

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