Crime Resources

This fraud involves the theft of stock and/or cash by an employee and, in many ways, is a straightforward form of fraud. It is, however, often difficult to perpetrate as companies with a lot of stock or cash are usually very conscious of the need to protect it.

There are different versions of payment diversion frauds. The main three are supplier bank detail frauds (often referred to as “mandate fraud”), fraudulent payment instructions and fraudulent bank communications.

Firstly, in relation to mandate fraud, a fraudster contacts an employee, usually in the accounts payable department, pretending to be from one of the company’s suppliers...

Frauds of this type are often long-running and difficult to detect, principally due to the employee having taken elaborate steps to disguise the misappropriations. Understand these frauds and see some examples in our guide.

What is social engineering fraud?

This term is used to describe a wide variety of frauds where fraudsters dupe their victims into disclosing confidential information and making payments by using psychological manipulation known as “social engineering”.

Many businesses choose not to opt for crime insurance; however, by doing so, they risk exposing themselves to potentially significant frauds and thefts. Here we summarise some of the “crimes” which frequently affect businesses, outline what crime insurance is and explain the role of a fraud investigator in investigating claims under certain crime policies.

Set out in this guide is a list of controls that may help prevent fraud. This is not intended to be an exhaustive list but, instead, is intended to assist with the consideration of a company’s control environment. The controls are separated into different areas - Recruitment and HR, Finance, Cash Handling and Stock.

There are different versions of payment diversion frauds. The main three are supplier bank detail frauds (often referred to as “mandate fraud”), fraudulent payment instructions and fraudulent bank communications.

Firstly, in relation to mandate fraud, a fraudster contacts an employee, usually in the accounts payable department, pretending to be from one of the company’s suppliers...