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Carlo Charles 3

One common response of fraud victims is desbilief. I an believe she would do this. She was my most trusted employee … Or by best costumer… Or my best friend. Some one who understands fraud will sadly tell you. “What else could they be?. They wouldn have succeeded without your trust!“. Indeed fraud perpetratos are often the least suspected and the most trusted of all the people with whom victims associate.
One company`s reasearch revaled that its largest group of fraud perpetratos is comprised of people between the ages of 36-45. The statics dont tell us why this is case but one reason may be that this age group includes managers who have worked themsleves into position of trust. In addition they are probable the group with the,“By the time I`m 40, I`ill have my house and cars paid off and have saving to pay for my children`s college“. But when many proplr reack 40, their houses and cars are mortgaged to the hilt and they have no savings to pay for their children`s college. During this same time frame (36-45) people are also better positioned in their careers to commit fraud. Alas any ti,e oppurtinity and life pressures are present together the number of cases of fraud climbs steeply and the result for companies can be financial implosion.
Types Of Fraud
A way that some people clasiffy fraud ist to divide frauds into those committed againts organzatins and those committed on behald of organization.
In employee fraud for example- fraid committed againts an organization- the victim of fraud is the employee`s organization. On the other hand with financial statement fraud for example executives ussualy commit fraud on behalf of an organization ussually to make its reported financial result look etter than they actually were. In this casa the executives of a company ussualy benefit because a company`s stock price increases or remains artificially high and the victims are investors in the company`s stock. Sometimes executives misstate earnings in order to ensure a larger year end bonus. Financial statement fraud often occurs in companies that are expeiencing net losses or have profits much less than expectation.

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