It Pays To Have Experience On Your Side.
free consultation917-639-5370

Common types of business fraud

Business fraud is a criminal offense of intentionally attempting or successfully executing a plan to defraud a business or obtain control of property owned by a business. These goals are usually accomplished via false representations, promises or pretenses. Business fraud is common, especially among small businesses with 100 or fewer employees. Small businesses experience an average loss of $154,000 because of fraudulent activities.

Many parties can commit business fraud, including employees, executives, partners, customers, clients and competitors. Here are some of the most common types of fraud that take place in businesses. 

Payroll fraud

There are several different ways payroll schemes can occur in a business. For example, an absent employee may ask a co-worker to clock in on his or her behalf. Another instance is an employee requesting a pay advance without paying it back. 

Identity theft

When fraudsters steal a business's identity, they can use it to access credit. Identity theft usually occurs by unlawfully accessing bank statements, financial statements, tax documents or computers. Both physical documents and digital files are at risk.

Return fraud

Businesses that sell products often experience return fraud. This may take place when a customer steals an item and attempts to return it to make a profit. Another example is a customer buying a product, using it and returning it even if the product is perfectly fine. 

Money fraud

Counterfeit money is in circulation across the country. It can take the form of a $1 or $100 bill. Customers, clients, vendors or partners may pay a business in fake cash. Businesses do not receive any revenue when accepting illegal cash.

Workers' compensation fraud

By law, many employers have workers' compensation coverage. Unfortunately, some employees may abuse this system by making up an injury or illness. Another way to defraud workers' compensation benefits is a worker who gets hurt outside of work and claiming it occurred on the job.

No Comments

Leave a comment
Comment Information

Honors and Memberships

Super lawyer American college trial lawyers The national trail lawyers AV Preeminent
Contact us

contact our law firm

If you are facing a criminal charge or securities dispute, it pays to have experienced lawyer on your side. Contact us today online or by telephone at 917-639-5370 to speak with an experienced New York City defense lawyer.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

New York
Bachner & Associates, P.C.

New Jersey
Bachner & Associates, P.C.

New York Office
39 Broadway, Suite 1610
New York, NY 10006

Phone: 917-639-5370
Phone: 212-344-7778
Fax: 212-344-7774
New York White Collar Crimes Office

West Caldwell Office
New Jersey Office
175 Fairfield Avenue, Suite 3D
West Caldwell, NJ 07006

Toll Free: 877-388-6461
Phone: 212-344-7778
Fax: 212-344-7774
Map & Directions