What is occupational frauds in polish law?


Statistically, an average company loses 5% of its annual income as a result of occupational frauds. Such conclusions come from the 2016 Report to the Nations on Occupational Fraud and Abuse conducted by the Association of Certified Fraud Examiners (ACFE). Statistical data from the survey lead to the conclusion that occupational frauds are an indispensable element of business, requiring significant activity on the part of the entrepreneur in order to minimize losses.

Types of occupational frauds

Occupational fraudscausing significant losses to the enterprise include all types ofmisappropriation of assets. They may be in the form of ordinary theft (e.g.cash, fixed assets, stock) or improper use of assets (e.g. use of company assets for private purposes, use of company know-how for private purposes).Frequent occupational frauds also include cases of corruption of the senior staff by using the employee’s influence on decisions made within th eorganization, in order to obtain financial benefits (e.g. bid rigging,influencing the choice of an offer that is beneficial to an employee in someway). The particularly dangerous cases include falsification of financial statements, including falsification of financial and managerial information. In such situations, there is usually an over- or understatement of revenues and assets, where by these activities give rise to a particular risk of loss for the enterprise, as they are committed by the senior employees themselves.

Databases and contractor databases as the area of occupational frauds

A common case of occupational fraud is the use by the employee of the company’s documents or databases for own purposes. Such activities are also observed in employees obliged to sign the  non-compete clause and often include the use of business partner databases. Such behaviour can lead to measurable property losses for the company. Such situations can be minimized by properly monitoring compliance with the clause by employees and by reacting adequately to situations in which the infringement of the non-compete clause is confirmed and the employee commits a fraud.

Occupational frauds are made by employees at all levels

According to surveys, occupational frauds are made by employees at all levels in polish companies – from the lowest, through the managerial level, ending up at the board level. It is important to note that statistically fraud at higher levels  cause significantly higher financial losses for the company than frauds at lower levels. It is also worth bearing in mind that sometimes occupational frauds in the highest groups of staff remain difficult to detect due to the scope of decision-making possibilities of employees and their free access to company data. For this reason, it is essential for the company to implement appropriate control solutions. Noting the irregularities will allow in this case to take appropriate actions that will allow to confirm the fact of fraud and the person responsible for the actions to the detriment of the company. Such activities can be carried out by a professional detective agency, which will guarantee the correctness of the analysis of the possibility of fraud.


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