High profile employee frauds, such as bribery and kickbacks, can damage much more than a company’s finances. The reputational hit from a corruption accusation can deter business, affect employee morale and affect an organization’s stock price in case of listed companies. . These frauds can include:
- 1. Bribes - An employee pays or provides a benefit to an official to secure an advantage for the company or for the employee.
- 2. Kickbacks - An employee receives payments or benefits from third parties in return for business advantages or for unauthorized discounts.
- 3. Shell Company Fraud Schemes - An employee or company officer may use a shell company to launder money, pay bribes, divert assets or evade taxes.
- 4. Product Substitution - A contractor, acting on its own or in collusion with an employee in the purchasing company, substitutes inferior or counterfeit materials for the materials specified in the contract.
