Definition
Cooperation between parties to commit fraud.
Context
Collusion often occurs in procurement, finance, and decision-making processes and is closely linked to kickback schemes, conflicts of interest, and weaknesses in internal controls. It is particularly critical because multiple parties deliberately cooperate to bypass control mechanisms.
Meaning
Undermines key control principles such as segregation of duties and represents a major risk factor for difficult-to-detect fraud.
Example
Buyer and vendor coordinate fake invoices.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Collusion", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/collusion/, accessed April 18, 2026.