Types of Business Fraud
Sep 13 2023 0

Types of Business Fraud

Fraud, according to the U.S. Department of Justice is a broad term. It can include false representations, dishonesty, and deceit. Fraud can be found in many disciplines and aspects of life. When fraud is found in business practices and exchanges, this is known as business fraud. To take legal action against behavior or activities considered to be fraudulent, a business person must have suffered damages or losses.

If you feel like you have been the victim of business fraud, then it can be advantageous to speak to an attorney for more information on what you can do to recover your losses and make things right. The Los Angeles business litigation attorney at the Leiva Law Firm has close to three decades of experience helping businesses facing legal disputes get the most desirable outcomes.

How Can Business Fraud Happen?

Types of Business FraudThere are many different types of business fraud that can transpire in the course of operations. Some of the most common include

Payroll Fraud

Stealing money from a company’s payroll can take place by making and submitting fake timesheets, paying out unauthorized commissions and bonuses, sending money to a fake account, and more.

Manipulation of Financial Records

The false adjustments of the true amount of debts and liabilities or income and assets may be done for several reasons and are unlawful.

Misappropriating Assets

Employees and other parties that take cash directly from the company or steal non-cash assets like office equipment is considered theft.

Tax Fraud

Trying to falsely downplay the profits and earnings a business generates to avoid paying higher taxes.

Identity Theft

Taking personal information from others and using it to steal from them. To protect sensitive data, companies should always use protected internet connections, encrypt data, and have up-to-date virus protection as a few examples of proactive safeguarding measures from illicit activity like identity theft.


Deliberate dishonesty with corporate funds or engaging in unethical behavior such as money laundering, taking bribes, or making transactions that go unreported are all examples of corruption.

Partners in a partnership may feel like they are being mistreated and the company mishandled through fraud, or maybe a business believes they are being maligned through fraudulent acts of their competition. It is imperative that if you believe that you have been the victim of business fraud, then you connect with a legal professional who can deal with such a complex situation. Fraud can harm a company’s reputation, operations, and bottom line. Corporate fraud is a very serious problem. Knowing the potential risks for fraud happening and taking the right preventative measures including having the guidance and advice of an experienced business litigation attorney is essential.

Speak to an Attorney at the Leiva Law

If you have questions about what you can do when you believe that business fraud is taking place, you can reach out and contact the Leiva Law Firm. The team at the Leiva Law Firm is dedicated to helping businesses overcome their legal disputes by building the strongest cases and aggressively defending their rights and operations.

For assistance and for more information about business litigation in California, please call the Leiva Law Firm today at (818) 519-4465. Initial consultations are free.


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