What is employee fraud?

Employee fraud, also known as occupational fraud or internal fraud, is a type of fraud committed by employees against employers. In short, employee fraud encompasses any type of fraud that somehow utilizes his or her role or employment as a factor for personal gain in a way that is an inappropriate use of the organization’s property, assets, or other resources. Types of employee fraud include, additional payroll payments, setting up fictitious customers, setting up fictitious employees, inventory theft, etc. There are multiple ways employees have access to defraud small business employers and these types of fraud can go on for months before being detected.