Workplace Fraud
Fraud Crimes Committed In The Workplace
By their nature, there are areas of occupation which provide a heightened opportunity for workplace fraud. While it can happen anywhere, workplace fraud can be a particular risk in areas involving:
- Cash handling;
- Regulation;
- High demand; and
- Procurement
- Transfers of funds to personal accounts;
- Inventing false suppliers and employees;
- Receiving kickbacks from suppliers and contractors;
- Paying for services from friends or associates at exaggerated prices;
- Providing discounts to friends or associates;
- Making private purchases from business cards or accounts;
- Obtaining false reimbursements;
- Manipulating records including timesheets and overtime logs for performance-based bonuses;
- Issuing false invoices;
- Falsifying credentials;
- Failing to disclose conflicts of interest;
- Forging signatures;
- Taking cash before recording in receivables; and
- Licensing without due diligence for friends and associates or a kickback
Fraud crimes are covered by the Crimes Act 1900 (NSW). The offence of fraud (Section 192E) has a maximum penalty of imprisonment for ten (10) years, and is defined as follows:
A person who, by any deception, dishonestly:
- obtains property belonging to another, or
- obtains any financial advantage or causes any financial disadvantage,
The Crimes Act provides for a number of more specific fraud offences as well:
- Section 192F – intention to defraud by destroying or concealing accounting records;
- Section 192G – intention to defraud by dishonestly making or publishing a false or misleading statement; and
- Section 192H – intention to deceive members or creditors by false or misleading statement by an officer of an organisation
Workplace fraud touches aspects of both criminal and employment law.
Where there is a serious suspicion as to fraud within the workplace, the appropriate step would be to report the matter to the police, together with:
- Details of the employee(s) in question
- Summary of allegations;
- Witnesses;
- Documents; and
- Any action taken
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