Glossary

Fraud refers to any intentional act of deception designed to secure an unfair or unlawful gain or to cause a loss to another party.

Fraud is an umbrella term covering various forms of economic crime, including asset misappropriation, corruption, and financial statement fraud. It can be committed by employees, external parties, or through collusive arrangements. Fraud is closely linked to internal controls, governance structures, and risk management, and represents a core subject of economic forensics.

Fraud results in financial losses, reputational damage, and legal consequences. Preventing and detecting fraud is a key objective of internal controls, compliance frameworks, and forensic investigations.

An employee manipulates invoices or payment processes to divert funds for personal gain.

The fraud triangle is a model used to explain fraud, based on the three factors of pressure, opportunity, and rationalisation.

The fraud triangle is a key concept in fraud risk assessment and is closely linked to internal controls and the analysis of occupational fraud. It is used to systematically identify risk factors and behavioural patterns.

It serves as a foundational analytical model for fraud prevention, detection, and investigation by structuring the key drivers of fraudulent behaviour.

Financial pressure combined with weak internal controls.

Occupational Fraud refers to fraud committed by employees, managers, or executives against their employer for personal gain.

Occupational fraud is a central concept in economic crime and includes schemes such as financial statement fraud, kickback schemes, and access rights abuse. It is often enabled by weak internal controls, insufficient segregation of duties, and lack of oversight.

It is the most common form of economic crime and can result in significant financial losses and organizational damage.

An employee diverts company funds by manipulating vendor payment processes.