Most common frauds big companies face in 2020.

Whether you’re a Big Corporation or a start up, or a SME fraud is something all companies suffer from at least one in their time till now, there’s no sure shot way to protect our company from frauds but what we can do ensure we understand frauds that take place and install security measure to protect our company’s assets.

The impact fraud may have on an organization can be monumental. Not only can it have a substantial financial effect, but, based on the type and seriousness, it can also destroy a company.

Well there are many types of fraud, you will find five that can cause the most harm.

1. Financial statement fraud

Although it's not as common, financial statement fraud may be the most damaging to your company.

Overstating earnings, earnings and assets -- along with understating liabilities are the most common activities found with this sort of fraud.

Recently a big firm was involved in fraud worth millions Rashed Al Suwaidi and Hussan Suheil of UAE were both found guilty by the Texas Court.

2. Asset misappropriation

Some of the common kinds of fraud fall into the class of asset misappropriation, which closely-held businesses are susceptible to.

Skimming of Money and Cash Larceny

This sort of asset misappropriation contains accepting money before it enters the company's accounting system.

It's very hard to find because it requires finding evidence of something which has not been listed yet. And, it doesn't require a good deal of sophistication to execute, which makes it a popular choice amongst the ones that commit fraud.

Examples of asset misappropriate include, check tampering, accounts receivable skimming, imitation billing schemes, payroll schemes, fake or replicate expense reimbursement schemes, and stock schemes.

Misuse of company assets

Another common type of asset misappropriation is the abuse of company assets.

Not only is it problematic since it's the unauthorized use of company resources, but it may also open the business to significant liability.

3. Theft of intellectual property and trade secrets

With a never ending development in Information Technology, no wonder more people are hoping onto era of Apps and Websites. Gradually given a rise to theft of Intellectual Property an increase in the theft of intellectual property and trade secrets is on the rise.

4. Healthcare, insurance and banking

Bogus health insurance claims, company insurance claims, and fraudulent bankruptcies are common ways individuals perpetrate this kind of fraud.

5. Consumer fraud

Individuals targeted through disadvantages, bogus telemarketing, email, Ponzi schemes, phishing, ID theft and other approaches, are all victims of consumer fraud.

Whether it's a company system violation or bogus tax returns filed to get large refunds, consumer fraud is on the rise. Businesses may also be victims of email phishing scams -- notably spear phishing, which involves sending targeted, hidden emails which contain malicious hyperlinks.