Business fraud can include crimes employees commit or crimes people commit against businesses. In nearly every case of business fraud in Louisiana, the purpose is to steal money from the business, employees or customers. These are six main types of business fraud.
Financial statement fraud
Owners or managers may commit this form of fraud to make debts look less serious or inflate income and assets. The purpose is often to get loans or to cover up failure in reaching goals. In some cases, financial managers may steal loan money they obtain through this fraudulent practice.
Business owners or managers may manipulate income information to be in a lower tax bracket. They may also falsify deductions. Tax evasion is another type of fraud that involves not paying taxes.
Dishonest practices and mishandling funds are common types of corruption. Some specific examples include allowing bribes, dealing with criminals, money laundering, not reporting transactions and manipulating elections.
This happens when a person steals and makes it look like payment for work. Although hackers can commit this type of fraud, employees with access to the payroll system may also commit it. For example, a person may make payments to a nonexistent employee, falsify timesheets or issue bonuses without authorization.
Misappropriating assets is a common type of white collar crime that employees commit. They may deliberately steal money or other assets from the company. For example, an employee may steal expensive equipment or inventory items to sell or keep.
Identity theft can happen in multiple ways. For instance, it may involve employees stealing sensitive customer information to steal from customers. Employees can also steal from businesses if they have the right information. Additionally, hackers can access customer, employee or business information to misuse.
Businesses must take steps to protect assets, employees and customers. Facing a charge for one of these types of business fraud is serious and can result in fines, prison or other penalties.