Definition
A recurring method used to commit and conceal fraud.
Context
Fraud schemes are a core analytical concept in occupational fraud and are systematically used in fraud risk assessments and fraud detection methods. They help classify common patterns, such as asset misappropriation, corruption, or financial statement fraud.
Meaning
Understanding common fraud schemes enables targeted control design, prevention, and detection, as many fraud cases follow recurring patterns.
Example
Creating shell vendors and paying fake invoices.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Occupational Fraud Scheme", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/occupational-fraud-scheme/, accessed April 18, 2026.