In fraud, what is the concept of "deceptive conduct by non-employees" primarily associated with?

In fraud, what is the concept of "deceptive conduct by non-employees" primarily associated with?

• A. Internal Fraud
• B. Financial Fraud
• C. External Fraud
• D. Embezzlement

Answer: (C)

The concept of "deceptive conduct by non-employees" is primarily associated with external fraud. This type of fraud occurs when individuals or groups outside of an organization engage in deceptive practices that target the organization's resources, assets, or customers. External fraud can take various forms, including phishing scams, counterfeit checks, identity theft, or vendor scams, where perpetrators leverage deceit to exploit vulnerabilities in the organization's operations. This distinction is crucial because it helps organizations focus their preventive strategies on protecting themselves against threats that originate outside their workforce. Recognizing external fraud is vital for developing effective risk management strategies and training employees to identify potential scams and threats. Understanding the nature of external fraud enables organizations to implement controls and countermeasures tailored to safeguard against such deceptive tactics.

The concept of "deceptive conduct by non-employees" is primarily associated with external fraud. This type of fraud occurs when individuals or groups outside of an organization engage in deceptive practices that target the organization's resources, assets, or customers. External fraud can take various forms, including phishing scams, counterfeit checks, identity theft, or vendor scams, where perpetrators leverage deceit to exploit vulnerabilities in the organization's operations.

This distinction is crucial because it helps organizations focus their preventive strategies on protecting themselves against threats that originate outside their workforce. Recognizing external fraud is vital for developing effective risk management strategies and training employees to identify potential scams and threats. Understanding the nature of external fraud enables organizations to implement controls and countermeasures tailored to safeguard against such deceptive tactics.