Workplace+Fraud

= = =Workplace Fraud =


 * Workplace Fraud** occurs when a person uses their position in an organization to capitalize personally on false statements that misrepresent an organization's resources or assets.

It is important to educate the employees of B&B Enterprises on the dangers and unethical nature of fraud and abuse, as well as train them on anti-fraud measures such as Internal and External Auditing that will prevent it from occuring.

There are three main areas of Workplace Fraud:
 * **Asset Misappropriation**
 * Includes both cash and non-cash thefts. This can occur by recording incomes, expenses, inventories, and proprietary information inaccurately.
 * 80% of workplace fraud cases are asset misappropriation.
 * **Corruption**
 * Accounts for 13% of workplace fraud and causes over $500,000 in losses per year.
 * **Fraudulent Statements**
 * Largest monetary losses result from fraudulent statements.[[image:enron.png width="147" height="151" align="right"]]

Small Businesses are the biggest targets of Workplace Fraud
 * Average losses are $127,500 with over 50% of cases resulting in losses of at least $100,000.

The **Enron** case is a recent example of Workplace Fraud
 * The company lied about its profits, concealed debts and withheld information from their shareholders. The stock dropped from $90 per share to as low as $0.61 per share. Thousands of employees and investors lost all of their savings and pensions. The company filed for bankruptcy in 2001.
 * Since 2001, several executives, including Paula Rieker and Richard Causey have pleaded guilty for fraud.

For more information on the Enron scandal, please visit [|The Fall of Enron].