Basic Understanding of Fraudulent Activities in Corporate Organisation

Abstract

Purpose: This paper is to enhance our understanding of fraudulent behaviour, happening in corporate organisations Design/methodology/approach: The discussion in this paper is based on our empirical studies, in which the underlying logics are adopted based on fraud triangle theory. Findings: Fraud is a serious issue that could bring down a company, no matter its size. Because fraud is such a monumental problem, it is important to combat it vigorously. Fraud detection and prevention should be an ongoing initiative. In addition, while we cannot prevent every instance of fraud from happening to business, we can take precautions to minimize fraudulent activity. This paper provides insights that can significantly reduce fraudulent activities from occurring or cut losses if a fraud already occurred. Making the company policy known to employees is one of the best ways to deter fraudulent behaviour. Following through with the policy and enforcing the noted steps and consequences when someone is caught is crucial to preventing fraud. The cost of trying to prevent fraud is less expensive to a business than the cost of the fraud that gets committed. Originality: While research has suggested how a single individual engages in fraud, we still do not understand how groups of individuals become involved. In this paper, we seek to contribute to the literature by considering such issues. And this paper also offers the possible measures to deal with it.