Employee fraud is defined as “use of fraudulent means to take money or property from employer”. There are three common types of employee fraud in an organization detailed below:-
- Monetary Fraud: When an employee by using fraudulent means earn money which is not his right from an employer or the place he is exercising his supervision. For example, a cashier stole money without the permission of employer.
- Theft: When an employee using knowledge of all security measures implemented employee break into employer and steal some asset or anything for his benefit.
- Workers Compensation Fraud: When an employee obtains benefit by intentional accidents in terms of leaves with pay and any attached benefits. This is the most common type of fraud and also expensive for employers to manage.
White collar crime refers to nonviolent financially motivated crime it is defined as “a crime committed by a person of respectability and high social status in the course of his occupation”. Bank frauds, bribing and blackmailing are the most common types of white collar crimes.