3 Methods That Fraudsters take to Fake Documents

fake document

3 Methods That Fraudsters take to Fake Documents

After conducting fraud, the fraudsters would usually do everything they can to avoid suspicion. There are 4 top ways to cover up fraud, as reported by Report to The Nation 2020. All of these methods are related to documents; such as falsifying entire physical and electronic documents or by changing some of the contents of documents. Research conducted by the 2019 Breach Report Data states that as many as 2,013 documents were publicly disclosed to be falsified, this resulted in estimated losses of $ 2.1 million.

Here are some ways that fraud perpetrators usually take to falsify documents:

  • Modifying the document

A modified document is an original document with several changes. The perpetrators may change or delete information contained in the document. They may affix a fake signature or stamp or add an image to the original document. Blank stolen documents can also be categorized as modified documents, where blank documents are filled with information that is inappropriate – this is usually the case with manufacturing companies.

  • Creating a new document

Like fake money, new documents that are created are imitations or replications of original documents. Typically, fraudsters order illegal documents with made-up information, or mimic document samples that are publicly available. Another characteristic of fake documents is the use of fabricated names of the company or authority that issues the document.

  • Documents that do not match the owner

This type of fraud is usually related to forged documents, such as electronic documents that are related to identity. The documents presented are original but they were brought or represented by people who are not legal holders of these documents.

Understanding the methods used by fraudsters to cover up their crimes can help companies to design better prevention mechanisms and detect signs of fraud so that losses from fraud can be minimized.

These methods also illustrates the importance of implementing internal controls such as segregation of duties, strict inspection of documents through due diligence, as well as the implementation of internal and external audits.

Integrity Indonesia as a company engaged in compliance for more than fifteen years has been trusted by clients in various fields to provide services that support clients in implementing internal control tools such as the Canary Whistleblowing System, due diligence, and fraud investigations. Prevent your company from losses, contact us for more information about other compliance services.




Written by: Aqilla

Business photo created by Racool_studio – www.freepik.com

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