What 5 characteristics of fraud are most common in business

in Steem Schools8 days ago
Business is a risk, but that does not mean that we enter into agreements with people who do not have a reputation and credibility.

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Here are the five most common characteristics of fraud in business:

Misrepresentation of Financial Statements - Intentionally altering financial records to mislead stakeholders about a company's performance or financial position, often to inflate profits or hide losses.

Misappropriation of Assets - Theft or misuse of company assets, such as cash, inventory, or equipment, by employees or management for personal gain.

Corruption - Unethical practices like bribery, kickbacks, or conflicts of interest where individuals abuse their position for personal benefit, often involving third parties.

Deceptive Practices - Falsifying documents, invoices, or contracts to deceive customers, vendors, or regulators, often to secure funds or approvals under false pretences.

Lack of Internal Controls - Weak or absent oversight mechanisms, such as inadequate audits, poor segregation of duties, or lax monitoring, enabling fraudulent activities to go undetected.

These characteristics often overlap and thrive in environments with poor governance, weak accountability, or insufficient checks and balances.

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Original post by @dobartim
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@dobartim, this is a vital post for anyone navigating the business world! I appreciate you highlighting the common characteristics of fraud. Misrepresentation of financial statements, asset misappropriation, and deceptive practices can be a minefield. Spotting these early can save so much heartache. Your emphasis on reputation and credibility is spot on – doing your due diligence is paramount!

The call to action with your NFT book adds an innovative touch. I'm sure there is useful information for the Steem blockchain community within. I especially appreciate you reinforcing the importance of community with "We Win Together" and inviting people to your Telegram group. Keep sharing your wisdom, @dobartim! It's posts like these that make Steem a valuable resource for everyone. Steem On!