Third Party Fraud

What is Third Party Fraud?

This is a fraud committed by people outside an employee employer relationship. They can be committed against individuals, businesses, companies, the government or any other entity. Third party frauds are not as common as occupational frauds, but on average each fraud is for a larger amount.

Some third party frauds are not meant to remain hidden forever. Some only remain hidden long enough for the fraudster to make their get-away. The fraudster may not care if the fraud is eventually discovered as they do not have a continuing relationship with the victim and they cannot be found.

Debt Factoring Frauds Factoring fraud is a fraud committed against a debt factoring company by one of its customers.
Financial Statement Fraud Financial statement fraud is the manipulation of the information used to prepare the financial statements released to the public and financial institutions.
Asset Leasing Fraud Leasing fraud is committed against a finance company by improperly obtain money by using fictitious leases or other finance arrangements.
Advance Fee Frauds The goal of Advance Fee fraud is to get the victim to pay an amount of money in advance of getting a product or service.
Land Sales Frauds Land Sales fraud is committed against a owners or purchasers of real proeprty by improperly obtain money by using fictitious valuations, contracts or sales agreements.
Ponzi Schemes A Ponzi scheme is the name given to a wide range of investment frauds that offer a large return on an investment, usually with no real investment of the monies.
Pyramid Schemes These are schemes where participants make payments to another participant based the prospect of receiving payments for the introduction of other persons into the scheme.
Vendor Finance Fraud This is a fraud against the seller (vendor) of an asset who provides finance to the purchaser for the acquisition of that asset.