Fraud in Businesses and Non-Profits

Fraud in businesses and non-profit organizations can be classified in two general categories:

  1. Occupational fraud (also called internal fraud)
  2. External fraud

Because small businesses and non-profits are especially vulnerable to fraud, in this section we provide information on how fraud may take place in these kinds of organizations.  In addition, we discuss how the fraud triangle theory works that explains what conditions generally lead to employee (or volunteer) fraud.