Corporate fraud can be any fraud committed against a business. Fraud impacting businesses can be both general frauds that target any business, to sector specific frauds.

Corporate frauds can include:

Account Fraud
An account takeover can happen when a fraudster poses as a genuine customer, gains control of an account and then makes unauthorised transactions. Any account could be taken over by fraudsters, including bank, credit card, email and other service providers. Online banking accounts are usually taken over as a result of phishing, spyware or malware scams. Fraud has been committed if money has been lost.

Application Fraud
Application fraud is when fraudsters open an account using fake or stolen documents in someone else’s name. It happens when identity theft has occurred.

Bankruptcy Related Fraud
Fraud relating to bankruptcy and insolvency can involve companies fraudulently trading immediately before being declared insolvent, or phoenix companies. Phoenix companies are when, following the insolvency of one company, a new company is set up overnight with the same directors, but is not liable to pay for the losses of the previous business because they seem to be different entities. Bankruptcy and insolvency related fraud also includes illegal trading while suspended or disqualified. Bankruptcy describes the financial status of a person. The victims of bankruptcy and insolvency related fraud tend to be the businesses that have given the bankrupt person credit, eg credit card companies and personal loan companies. Fraud has been committed if money has been lost.

Business Directory Fraud
Business directory fraud is when a business receives a form in the post, by email or fax, appearing to offer a free listing in a business directory. The business directory could be advertised as a hard copy or online business directory. The business is asked to return the order form even if they don’t want to place an order, but the small print states that by returning the form, you are committing to an order and will pay for ongoing entries in the directory. This costs hundreds of pounds a year. The bogus publisher may try to enforce the debt by sending threatening ‘debt collection’ letters.

Domain Name Fraud
Scams relating to website domain names involve fraudsters offering businesses first refusal on a domain name, saying that someone else is just about to buy it. The caller will often say that the business has just minutes to accept the offer. The fraudster will then try to pressure the business to pay an excessive fee for a domain name. In reality, no third party exists. Domain name scams can also come in the form of bogus domain name renewal notices. A business might be sent a letter that looks like the renewal notice for a domain name. In fact, the notice has come from a different company from the one the business has previously registered the domain name with.

Exploiting Assets / Information
This is when assets of an organisation are used for unofficial purposes. Fraud relating to exploiting assets and information can include those who supply information to outsiders for personal gain. This type of fraud does not include theft from a company by insiders, such as stealing stationary.

Invoice Fraud
Fake invoice scams happen when fraudsters send an invoice or bill to a company, requesting payment for goods or services. The invoice might say that the due date for the payment has passed, or threaten that non-payment will affect credit rating. In fact, the invoice is fake and is for goods and services that haven’t been ordered or received.

False Accounting
False accounting fraud happens when company assets are overstated or liabilities are understated in order to make a business appear financially stronger than it really is. False accounting fraud involves an employee or an organisation altering, destroying or defacing any account; or presenting accounts from an individual or an organisation so they don’t reflect their true value or the financial activities of that company. Whatever the reasons for false accounting, they are all motivated by the need to falsify records, alter figures, or possibly keep two sets of financial accounts.

Fixed Line Fraud
Fixed line or premium rate fraud is when fraud is committed against telephone companies. Fixed line fraud can be done in a number of ways. In some cases, fraudsters gain access to a switchboard and sell other people the ability to make calls through the switchboard. This is known as Dial Through Draft (DTF) or Direct Inward System Access Fraud (DISA). Fixed line fraud can include Premium Rate Service fraud, which is when fraudsters significantly increase the number of calls to a premium number so they can increase the revenue they receive from it. Call selling fraud is another form of fixed line fraud. This is when fraudsters take out a phone service and sell other people the ability to make calls through it. The fraudster has no intention of paying the bill. The final form of fixed line fraud involves fraudulent applications. In this type of fraud, the fraudster takes out a phone service in a false name and leaves a bad debt.

Government Agency Fraud
Government agency scams are when fraudsters send out official looking letters or emails to ask for money or personal information. The correspondence gives the impression that they are from a government department and imply they have some form of authority. The letter or email might advise that you must register in order to comply with some kind of legislation – for a fee. Other alternatives include asking you to pay a fine for breaches to the law, or requesting bank details to claim a tax rebate. Fraud has been committed if money has been lost.

Office Supply Fraud
Office supply scams happen when telemarketers trick employees into ordering or paying for stationery. The caller might mislead a company’s employees into thinking that an order for office supplies has already been placed, either by am existing or former colleague, and that they are calling to chase up a signature for the order form to help them keep complete records. The company is then sent and invoiced for unwanted, and often overpriced, stationery and office supplies. If the company tried to return the goods, they are told that returns are not possible because an order form has been signed and the order was agreed over the phone.