Glossary
Fraud: an intentional deception made for personal or organizational gain or to damage another individual or organization
Below are the various types of fraud and their definitions.
| Term | Definition |
| Altered Inventory Records | To change or modify list of merchandise or stock on hand. |
| Asset Misappropriations | Any scheme that involves the theft or misuse of an organization's assets. |
| Bait and Switch |
Is when a party attracts potential buyers by advertising a product or service and it is eventually revealed that the product or service originally offered is not available or as advertised. The goal of the bait and switch is to convince the buyer to accept a substitute product or substandard service. |
| Bribery |
Any scheme in which a person offers, gives, receives, or solicits something of value for the purpose of influencing a business decision. |
| Cash Theft |
Fraudulently steals cash/checks from daily receipts or cash register before they can be deposited in the bank. |
| Cheating |
An act of dishonesty, fraud or swindle. |
| Check Forgery | Check that is presented as an original; however, the check has not been authorized for issue. |
| Check Tampering |
Altering a check on one of the organization’s bank accounts, or steals a check the organization has legitimately issued to another payee. |
| Computer Fraud |
A conduct that involves the manipulation of a computer or computer data in order to dishonestly obtain money, property or to cause loss. Examples of computer fraud include stealing money from bank accounts and stealing information from other persons' computers for gain. |
| Computer System Penetration |
Act of entering into computer systems so as to establish influence or gain information. |
| Conflict of Interest |
Any scheme in which an employee, manager or executive has an undisclosed economic or personal interest in a transaction that could adversely affect the company as a result. |
| Corruption |
Any scheme in which a person uses his or her influence in a business transaction to obtain an unauthorized benefit. |
| Credit Card Fraud |
Using an invalid or stolen credit card to purchase goods or using the credit card in a dishonest way. |
| Credit Card Refund Schemes |
An individual with access or control of credit card "machine" and using personal credit - processed a refund to their personal credit. The goal is to hide or offset negative receipts against total credit charges. |
| Duplicate Payment Schemes |
Make a payment for exactly the same goods already paid with the original invoice. This can allow refunds issued to the individual. |
| Email Fraud |
Email fraud is an inexpensive and popular method for distributing fraudulent messages to potential victims. Most fraud is carried out by people obtaining access to account numbers and passwords. Never respond to any messages that asks you to send cash or personal information. |
| Fake Receivable |
Deceives or pretends to receive business assets in the form of obligations due from others. |
| False Account Entries |
Making untrue entries in a statement of financial transactions. |
| False Count |
Adjusting or correcting count of items. |
| False Data |
Untrue information, especially information organized for analysis or used to reason or make decision. |
| False Documents |
Not genuine or original documents. |
| False Expense Claims |
Makes a claim for reimbursement for fictitious expenses. |
| False Expense Reimbursements |
Any scheme in which an employee makes a claim for reimbursement of fictitious or inflated business expenses. |
| False Financial Statements |
Falsification of an organization’s financial statements to make it appear more or less profitable. |
| False Invoices |
Untrue itemized bill of goods sold or services provided. |
| False Report |
Untrue or altered account of statement. |
| False Reporting |
Untrue account or report presented in detail. |
| False Sales Invoices |
A company sales invoice can be altered to show a lower sale amount than was actually the case. The difference between the real sale amount and the adjusted lower amount can then be misappropriated without the accounting system showing a red flag. |
| False Travel Claim |
Submitting untrue expense claims for journeys not taken or claiming for extra miles on journeys |
| False Vendors |
Employee creates a shell company and bills employer for non-existent services. |
| Falsified Hours |
Employee claims pay is due for un-worked hours. |
| Fictitious Refunds |
Implies fabrication or deception to return money or repayment. |
| Forged Signatures |
Act of imitating signatures on official documents. |
| Ghost Employee |
A ghost employee is someone recorded on the payroll system, but who does not work for the business. |
| Hacking (Computer) |
Accessing a computer without authorization with the intent to commit fraud or questionable activity. |
| Identity Theft |
Personal information (e.g. social security numbers) of others used to gain benefit. |
| Improper Disclosures |
Schemes in which management fails to disclose material information in its financial statements in an attempt to mislead users of the financial statements. |
| Inventory Fraud |
Any scheme involving the theft or misappropriation of physical, non-cash assets such as inventory, equipment or supplies. |
| Inventory Theft |
A list of goods or materials on hand (stock) taken unlawfully, stolen. |
| Invoice Altering |
Untrue itemized bill of goods or services provided. |
| Journal Entry Fraud |
Entries or adjustments made that are false or knowingly lacking proper support. |
| Kickbacks |
A return of a part of a sum received often because of confidential agreement or coercion. |
| Lying |
To speak falsely or utter untruth knowingly, as with intent to deceive. |
| Mail Fraud |
A person knowingly and willfully devised a scheme to obtain money or property by means of false pretenses, representations by using mail. |
| Misrepresentation | To intentionally represent incorrectly, improperly, or falsely. |
| Moving Money to Inactive Accounts |
Moving money to an account in which there have not been any transactions for an extended period of time with intent to use it/obtain it for personal gain. |
| Overstated Refunds |
Employee claims an exaggerated amount of repayment of expenses. |
| Overtime Authorization | Claiming for overtime hours without proper approval. |
| Payables Fraud | A deception practiced in requiring payment to a particular person or entity. |
| Paying Personal Expenses | The act of buying for personal use and submits invoice for payment. |
| Payment of Credit Card |
Making payment for personal purchases bought with a company credit card. |
| Payroll Fraud |
Employee claims pay for un-worked hours. |
| Performance Fraud |
A deception carried out in accomplishing the work. |
| Personal Purchases |
The act of buying for personal use. |
| Phony Contract Bids |
To falsify, counterfeit/fabricate contracts. |
| Plagiarism |
The act of taking the writings of another person and passing them off as one's own. The fraudulence is closely related to forgery and piracy - practices generally in violation of copyright laws. |
| Policy Violation | A plan of action adopted my management is used unlawfully or is in violation of the Terms. |
| Record Destruction (Improperly) |
Illegally destroying or erasing information to hide questionable activity. |
| Reimbursement Refund Schedule | Purchase or pay for item and receiving reimbursement from employer with the goal of later seeking a refund from the retailer. |
| Skimming |
Employee accepts payment from a customer but does not record the sale. |
| Software Piracy | Unlawful copying and distribution of software. |
| Stealing |
To take the property of another without right or permission. |
| Swindling |
To take money or property by deceit. |
| Technology Theft |
Stealing specific methods, materials and devices used to solve practical problem. |
| Theft of Assets |
Stealing anything of material value or usefulness that is owned by a person or company. |
| Theft of Checks |
Fraudulently steals checks. |
| Timecard Tampering |
Employee claims pay for un-worked hours. |
| Unauthorized Disbursements |
An amount paid out or spent without official authorization. |
| Unauthorized Withdrawals | Removing something without prior approval. |
| Violation of Oath |
Violating the solemn attestation of the truth; the truth of the statement of fact, (e.g. travel report reimbursement sign-offs). |
| Wire Transfer Fraud |
Fraudulently transfer funds electronically from one bank to another to pay or credit money to a payee designated by a payer. |
| Workers' Compensation Fraud |
Occurs when someone lies or willfully provides a false statement, or willfully misrepresents their physical condition to obtain benefits due to an injury at work. |
| Write-off Schemes | A reduction in the value of an asset or earnings by the amount of an expense or loss.The act of cancelling account or bad debt as worthless without proper approval. |