Understanding Fraud
Fraud happens when someone intentionally lies or hides important information to cause a person or organization to lose money or property. In simple terms: if someone deceives another to take money or assets, it’s fraud.

There are two main types of fraud: personal fraud and organizational fraud. This page focuses on organizational fraud, which includes both internal and external fraud.

Internal Organizational Fraud
This is sometimes called occupational fraud. Internal fraud occurs when someone inside the organization commits the wrongdoing.

Examples include:

• Forgery
• Falsifying accounting records
• Misreporting leave or hours worked
• Unauthorized changes to financial documents
• Misuse of funds or other College assets
• Improper financial transaction reporting
• Destroying, removing, or using College property for personal gain

External Organizational Fraud
External fraud comes from outside the organization. This includes cybersecurity threats and other financial schemes.

Examples include:

• Forgery
• Shoplifting
• False vendor billing
• Fake check or credit card payments

How the College Helps Prevent Fraud
The College uses several safeguards to prevent and detect fraud.

Examples include:

• Financial statement audits
• Internal audits and reviews
• Internal controls and separation of duties
• Policies and procedures
• Cash‑handling training