Corporate fraud represents a real threat to organisations, regardless of their size or sector of activity. Often seen as exceptional, it nevertheless occurs in everyday situations, where internal controls are insufficient or habits are too deeply entrenched. In a context of digitalisation, rising cyber fraud and increasingly complex flows, corporate fraud detection becomes a real challenge for financial management and risk management.
What is corporate fraud?
Corporate fraud refers to any deliberate act intended to deceive an organisation in order to obtain an undue advantage, financial or otherwise. It generally relies on exploiting internal weaknesses or manipulating trust.
In its report Occupational Fraud 2026: A Report to the Nations, the Association of Certified Fraud Examiners (ACFE) estimates that companies lose an average of 5% of their revenue due to fraud.
Types of fraud
There are two main categories of fraud, depending on their origin.
Internal fraud
Committed by one or more employees, it can take various forms:
- Misappropriation of funds or assets
- Manipulation of expense claims
- Falsification of accounting entries
- Overbilling
- Collusion with a supplier
- Corruption
These situations often rely on detailed knowledge of the company’s internal processes.
External fraud
Perpetrated by third parties, it includes:
- Identity theft (CEO fraud)
- Supplier fraud (change of bank details, fake invoices)
- Customer fraud
- Phishing, hacking and cyberattacks
These frauds mainly exploit procedural weaknesses and the human factor.
Indicators to monitor
Fraud detection rarely relies on a single signal. It involves analysing discrepancies and unusual behaviour.
Early warning signs
Early warning signs are subtle anomalies that, on their own, do not constitute proof, but should raise concern when they recur. In particular, you may observe:
- Unexplained accounting discrepancies
- Sudden variations in expenses or margins
- Unusual dependence on a supplier
- Frequent changes to bank details
- Atypical behaviour (refusal to delegate, lack of rotation)
The key is to cross-reference these elements to identify a fraud risk.
Control points
These relate to key moments when a transaction can be approved, verified or blocked. Control points include:
- Payment approval
- Creation or modification of suppliers
- Processing of expense claims
- Accounting close
- Management of IT access
These measures are the organisation’s safeguards. When they are bypassed or absent, the risk of fraud increases significantly.
How to detect corporate fraud?
Fraud detection is based on implementing practical methods tailored to the risks identified.
Raise awareness and train
Prevention relies above all on team involvement. According to the Euler Hermes – DFCG 2021 study, in nearly 80% of cases, employees play a key role in detecting fraud.
Training employees to spot anomalies and report information directly strengthens the effectiveness of fraud prevention measures. This also requires a clear framework: the implementation of internal procedures and specific reporting channels.
Implement controls
Implementing appropriate internal controls is essential. This mainly involves:
- Segregation of duties
- Dual approval
- Regular monitoring of sensitive transactions
Effectiveness depends less on complexity than on consistency and the actual application of the rules.
Audit
Le recours à un audit interne ou externe permet de prendre du recul sur les pratiques. Le caractère imprévisible de certains contrôles ponctuels renforce également la vigilance face aux tentatives de fraude. Faire intervenir un cabinet spécialisé permet :
- Detect anomalies
- Identify organisational weaknesses
- Recommend corrective actions
Audit thus becomes a structuring lever in managing fraud risk.
In conclusion
Corporate fraud can have significant consequences: financial losses, reputational damage, disputes and legal costs.
Because it takes many forms and can sometimes be difficult to identify, prevention relies on constant vigilance: attention to early warning signs, structuring control points and team involvement.
Fraud detection does not rely on a one-off action, but on an ongoing approach to securing practices.
At NG, our teams of auditors and chartered accountants can support you in structuring your control measures and detecting fraud risks within your organisation.