Financial fraud is a fast growing industry worldwide. Some of the frauds are complex as demonstrated by Enron. Other frauds are not as complex, but can be significantly greater in revenue loss as evidenced by World Com.

Most frauds are not complex or as large as the frauds that make the national headlines. Fraud is happening every day at small businesses by trusted employees. Losses by perpetrators over 60 years of age are 27 times greater than those losses for those under 25 years of age. Financial fraud is defined as one or more intentional acts designed to deceive other people and cause them financial loss. The type of fraud that is in the news daily is occupational fraud.

This type of fraud is the use of one’s occupation for personal enrichment through deliberate misuse or misapplication of the employing organization’s resources or assets. Examples of this type of fraud range from as simple as stealing office supplies or time, to sophisticated financial statement frauds.