As determined by both the 1996 and 2002 Reports to the Nation, there are three major categories of occupational fraud:
• Asset misappropriations, which involve the theft or misuse of an organization’s assets. (Common examples include
skimming revenues, stealing inventory, and payroll fraud.)
• Corruption, in which fraudsters wrongfully use their influence in a business transaction in order to procure some
benefit for themselves or another person, contrary to their duty to their employer or the rights of another. (Common
examples include accepting kickbacks and engaging in conflicts of interest.)
• Fraudulent statements, which generally involve falsification of an organization’s financial statements. (Common
examples include overstating revenues and understating liabilities or expenses.)