From: sheriffcoltrane23x@gmail.com   
      
   What Is Fraud?   
       
      
       
      
   In the broadest sense, fraud can encompass any crime for gain that uses   
   deception as its principal modus operandus. More specifically, fraud is   
   defined by Black's Law Dictionary as:   
       
      
   A knowing misrepresentation of the truth or concealment of a material fact to   
   induce another to act to his or her detriment.1   
      
      
   Consequently, fraud includes any intentional or deliberate act to deprive   
   another of property or money by guile, deception, or other unfair means.   
      
      
   Types of Fraud   
   Fraud against a company can be committed either internally by employees,   
   managers, officers, or owners of the company, or externally by customers,   
   vendors, and other parties. Other schemes defraud individuals, rather than   
   organizations.   
       
      
   Internal Fraud   
   Internal fraud, also called occupational fraud, can be defined as: "the use of   
   one's occupation for personal enrichment through the deliberate misuse or   
   misapplication of the organization's resources or assets." Simply stated, this   
   type of fraud occurs    
   when an employee, manager, or executive commits fraud against his or her   
   employer.    
      
   Although perpetrators are increasingly embracing technology and new approaches   
   in the commitment and concealment of occupational fraud schemes, the   
   methodologies used in such frauds generally fall into clear, time-tested   
   categories. To identify and    
   delineate the schemes, the ACFE developed the Occupational Fraud and Abuse   
   Classification System, also known as the Fraud Tree. Learn more about the   
   Fraud Tree.   
      
      
   External Fraud   
   External fraud against a company covers a broad range of schemes. Dishonest   
   vendors might engage in bid-rigging schemes, bill the company for goods or   
   services not provided, or demand bribes from employees. Likewise, dishonest   
   customers might submit bad    
   checks or falsified account information for payment, or might attempt to   
   return stolen or knock-off products for a refund. In addition, organizations   
   also face threats of security breaches and thefts of intellectual property   
   perpetrated by unknown third    
   parties. Other examples of frauds committed by external third-parties include   
   hacking, theft of proprietary information, tax fraud, bankruptcy fraud,   
   insurance fraud, healthcare fraud, and loan fraud.   
      
      
   Fraud Against Individuals   
   Numerous fraudsters have also devised schemes to defraud individuals. Identity   
   theft, Ponzi schemes, phishing schemes, and advanced-fee frauds are just a few   
   of the ways criminals have found to steal money from unsuspecting victims.   
      
       
      
   Why does Fraud Occur?Fraud Triangle    
      
   The best and most widely accepted model for explaining why people commit fraud   
   is the fraud triangle. This is a model developed by Dr. Donald Cressey, a   
   criminologist whose research focused on embezzlers--people he called "trust   
   violators." Learn more    
   about the fraud triangle.   
      
       
      
       
      
   1Bryan Garner, ed., Black's Law Dictionary. 8th Ed. (2004), s.v., "fraud."    
      
      
      
      
   http://www.acfe.com/fraud-101.aspx   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)