The Transition of Employee Fraud within an Organisation

The Extended Reward System

The table below illustrates how fraud develops in an organisation without effective controls and proper organisation culture in place. The organisation that does not set boundaries effectively exposes itself to actions by employees that may threaten the entire business.

Basic

Fringe Benefit

Perk

Fiddle

Fraud

Salary & wages

Company car, expenses payments etc

Nicer office; use of phone and photocopier at work for personal reasons; leave early on Friday etc

Padding expense accounts; stock shrinkage; shortchanging customers etc

Significant stealing of funds, property or services; corruption; fraudulent financial reporting etc

Official

Official,

or unofficial but accepted

Unofficial and unacceptable, but some may be tacitly accepted within limits as part of cost of doing business

Unofficial and unacceptable

Legal

Illegal

Helps business

Threatens business

This Post Has One Comment

  1. Chris

    Nice chart. Another perk worth including is using the airpoints accumulated whilst travelling at an employers’ expense, for personal benefit.

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