The topic of the brain storming session is examples of fraud in the workplace.
Select ant one of the examples of fraud from the previous activity. Write down the example chosen. Classify the type of fraud as one of the following; 1.1. Corruption 1.5. Explain why you chose that category of fraud. Answers will vary according to the example chosen, but should match the categories as follows: 2. Do research online / library to identify the most likely piece of legislation that would govern this activity. 3. Discuss and brain storm what legal recourse maybe available to employers in cases of fraud. 4. Give an example of the above. 5. What do you think the consequences of fraud would be for each of the following; 5.1. The organisation 5.2. The person committing the fraud 5.3. The customers of the organisation 5.4. The whole business sector
Example of fraud: Employee A regularly submits false expense claims by inflating the amounts spent on business trips.
Classification of fraud: This example can be classified under Corruption (1.1) as it involves the employee dishonestly manipulating expense claims for personal gain.
Legislation that would govern this activity: The most likely piece of legislation that would govern this activity could be the Fraud Act 2006 in the United Kingdom. This Act prohibits fraudulent activities, including making false representations, failing to disclose information, or abusing one's position for personal gain.
Legal recourse available to employers: In cases of fraud, employers can take legal recourse by investigating the allegations thoroughly, collecting evidence, and then proceeding with disciplinary action. They may also involve law enforcement agencies and initiate criminal proceedings against the employee.
Example of legal recourse: In this case, the employer could gather evidence of the fraudulent expense claims, such as comparing receipts and bank statements, interviewing witnesses, or utilizing internal audit reports. Once there is sufficient evidence, the employer can hold a disciplinary hearing and, if necessary, terminate the employee's contract and file a report with the appropriate authorities.
Consequences of fraud:
5.1. The organization: The consequences for the organization can include financial losses, damage to its reputation and brand image, decreased trust among stakeholders, increased scrutiny from regulators, and potential legal penalties or fines.
5.2. The person committing the fraud: The consequences for the person committing the fraud can include termination of employment, criminal charges, lawsuits, damage to their professional reputation, difficulties finding future employment, and potential imprisonment depending on the severity of the fraud.
5.3. The customers of the organization: The consequences for the customers of the organization can involve financial losses, breaches of privacy or data security, decreased trust in the organization, and potential harm or inconvenience caused by the fraudulent activities.
5.4. The whole business sector: The consequences for the whole business sector can include decreased trust and confidence in the industry, stricter regulations or compliance requirements, increased scrutiny from regulators, and potential negative impacts on the economy as a whole.