A to Z Vehicle Hire

Appendix Number 1
Appendix Name: FRAUD
Assessment Criteria Covered: 2.2, 2.3.
Sources of information: www.hm-treasury.gov.uk, Fraud Act 2006-legislation.gov.uk. Internal control and accounting systems as borne Books.BPP Professional Ethics.

Fraud is a word used often and can cover a variety of offences, but one of the main definitions is:
The abuse of position with the intention of obtaining an advantage, or false representation, avoiding an obligation prejudicing someone’s rights, causing loss to someone else or to an organisation for personal gain. Fraud is a fact of life it occurs right at the top of an organisation by directors fiddling the books, right down to the simple stealing of pens and stationary by office staff. It also can be more complicated crimes such as supplying false information which individuals can be prosecuted under Fraud Act 2006 for making:
*false representation.
*abuse of position.
*failure to disclose information.
2.2 The common causes of fraud is a lack of Internal Controls, which often are no reporting structures an unfortunate fact of life within an organisation. Human nature also plays a major part which can be caused by over whelming pressures:
* Too high a target set (figures are manipulated so it appears that target is met).
*Hunger for promotion
*Personal factors (gambling or financial problems)
*IT systems can be hacked. (Selling company information to competitors for financial gain or being bribed to do so).
The main types of fraud are:
Theft examples of which are as follows:
*Taking company cash, stock or laptops.
*Inflating a travel claim.
*Diverting money from organisation for personal use.
*Looking for excessive delays before money received is banked (Teeming and Lading).
*Selling Organisations financial information to competitors for financial gain. (Confidential customer and client information).
*Stealing from petty cash by claiming false expense claims.
*Suppliers invoice for more goods or services than were delivered...