Yesterday we discussed what to do if you discover that you are being defrauded and it is an active fraud. Once again, the Nigerian 419 scam is the best example of this. And, the advice is simple - the first step is to stop sending money.
What if you are the victim of a more passive fraud, however? What happens if, for example, you are in the accounting department of a company and you realize that fraud is occurring? For example, while going over the receipts of an employee who is asking for a refund or a reimbursement. What happens then?
It is unwise to simply confront someone in this situation because, as the person doing the confrontation, you may be accused of libel, slander and other torts if your accusations turn out to be baseless. So, if you find that you (or your company) are the victim of a passive fraud, the best first step is to contact the next person in your department (or the company) who is responsible for oversight and have them check your work. Or, if you are in a small company, the person who is above your level of responsibility. Or, if you are self-employed and you think a vendor is committing fraud, ask your accountant.
You get the idea. Get an opinion first from someone other than yourself. Don't go directly accusing people.
Unlike active frauds, where you actually have to take some action to be a victim of the fraud (i.e. send money), passive fraud means that someone is committing fraud without you having to take any action (other than perform a reimbursement or something of that nature). You are not being asked to send money to a person or organization, quite the opposite - someone is taking money from you.
This then is a good first step if you are the victim of passive fraud.
More tomorrow.
What if you are the victim of a more passive fraud, however? What happens if, for example, you are in the accounting department of a company and you realize that fraud is occurring? For example, while going over the receipts of an employee who is asking for a refund or a reimbursement. What happens then?
It is unwise to simply confront someone in this situation because, as the person doing the confrontation, you may be accused of libel, slander and other torts if your accusations turn out to be baseless. So, if you find that you (or your company) are the victim of a passive fraud, the best first step is to contact the next person in your department (or the company) who is responsible for oversight and have them check your work. Or, if you are in a small company, the person who is above your level of responsibility. Or, if you are self-employed and you think a vendor is committing fraud, ask your accountant.
You get the idea. Get an opinion first from someone other than yourself. Don't go directly accusing people.
Unlike active frauds, where you actually have to take some action to be a victim of the fraud (i.e. send money), passive fraud means that someone is committing fraud without you having to take any action (other than perform a reimbursement or something of that nature). You are not being asked to send money to a person or organization, quite the opposite - someone is taking money from you.
This then is a good first step if you are the victim of passive fraud.
More tomorrow.
NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE. IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.
Have a great and fraud-free day.
----------à>>>>>>>>>>>>>>>gene tausk
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