Get What’s Coming to You

Best Practices for Detecting External Fraud

In general, there are two types of fraud: internal (done by employees) and external (done by everyone else). These types of fraud take numerous forms but always result in the same outcome: The business owner loses money.

Types of external fraud include:
- identity theft;
- e-mail, chat room and instant messaging schemes;
- re-shipping schemes;
- card generators;
- hackers;
- dumpster divers; and
- skimming (magnetic stripe readers)