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3 types of occupational fraud in Missouri?

On Behalf of | Feb 3, 2023 | Criminal Law

Some legal categories are quite specific regarding what constitutes a crime in Missouri. For instance, someone facing criminal charges for theft is typically accused of taking something without permission that did not belong to the accused. However, some legal terms, such as ”fraud,” are much broader and address various types of illegal activities. Occupational fraud is a case in point.

There are three main types of occupational fraud, which is also sometimes referred to as ”internal” fraud. This type of crime takes place within a business. Facing occupational fraud charges may not only place a job at risk but a person’s private and professional reputation, as well. It is not only important to understand exactly what constitutes occupational fraud but also to know where a person can seek support if he or she becomes subject to a criminal investigation.

Occupational fraud usually involves one of these three issues

There are three main categories of occupational fraud:

  • Criminal activity involving financial statements
  • Misappropriation of assets
  • Corruption

Occupational fraud basically occurs when someone on the inside of a business commits theftor other dishonest acts in order to deceive the organization for personal gain. This could involve an employee, a manager, another executive or even a co-owner.

A basic overview of each occupational fraud category

Financial statement fraud refers to over or undervaluing assets or concealing liabilities, as well as lying about revenue or other financial issues. Misappropriation of assets occurs when an employee or company executive misuses business assets or the assets of clients for personal financial gain. Finally, corruption charges might include theft, bribery, extortion or any number of other issues. It is always best to seek immediate legal support if a Missouri worker or business executive has been taken into police custody for suspected occupational fraud.

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