White-Collar Crime Series
The perpetration of internal fraud – that is, a fraud
committed against a business by one of its employees or officers
– can have significant ramifications for a business and its
stakeholders that extend far beyond its immediate bottom line.
Legal obligations on a company and its remaining directors may
arise, workplace morale may be impacted, and long-term reputational
damage may occur – just to name a few possible
consequences.
Internal fraud most commonly involves theft or misuse of assets,
through stealing, fraudulent payments or embezzlement. However, it
can also involve the misuse of confidential information and
intellectual property. In carrying out such fraud, employees or
officers may have also engaged in acts of bribery, conflict of
interest or extortion.
