Massey Law Firm PLLC
346-800-6101

Common types of business fraud

When Texas residents think about business fraud, they may first think of illegal activities performed at large corporations. However, fraud can occur at a business of any size. It is important for business owners to understand what this kind of fraud is, as well as the different forms it comes in.

A company might commit fraud while appearing to conduct business in a normal manner. FBI.gov says that business fraud usually falls into several categories. A company might send goods to another company without paying for them or accept payment for merchandise without sending it to a customer. Business fraud can also include posing as a legitimate charity.

According to Entrepreneur magazine, there are a few kinds of fraud that small businesses are sometimes more likely to experience. One of these is cash theft. This usually occurs when someone spends company money without the appropriate authorization or takes money from the company, either before or after it enters the accounting system. Fraud can also occur when a company sends or receives invoices. Sometimes a small company might receive an invoice from a supplier the owner thinks is legitimate. In other situations, someone at the company might make up a supplier and then pocket the money sent to this fake business.

Fraud can also occur when a company does its banking online. This is because money could unintentionally end up in a fake account. Additionally, fraud can take place in a business's payroll system. Sometimes book keepers might record payments inaccurately, causing some employees to receive the wrong amount in their paycheck.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Need Help With A Business Matter?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Massey Law Firm PLLC
601 Sawyer St.
Suite 225
Houston, TX 77007

Phone: 346-800-6101
Fax: 713-588-8437
Houston Law Office Map