2: Types of Corporate Fraud

Corporate fraud has become a severe challenge for any organization in today's global business environment. It has received increasing attention from both practitioners and academics. According to the 2018 Global Economic Crime and Fraud Survey conducted by PwC (2018), half of the respondents said their companies had been victims of fraud in 2018, up 36% from their previous survey in 2016. An estimate of the financial cost of fraud in 2018 globally is about $4 trillion (Gee & Button, 2018). In the broadest sense, fraud can encompass any crime for gain that uses deception as its method. Corporate fraud is an intentional act by one or more individuals among management, those charged with governance, employees, and third parties using deception to get an unfair and illegal advantage.