Phase 1 — Classic Fraud Schemes · 7 min read
7 · Company Property Used for Personal Benefit
Business assets — vehicles, equipment, credit cards, staff time — used for private purposes at company expense.
01The personal charge on the company card
Personal spending run through the business is the most common and the most normalized form of owner fraud. It survives because each item is small and the category — travel, meals, supplies — looks plausible. The pattern is what gives it away.
- Company card charges in locations and on dates inconsistent with business travel.
- Fuel and maintenance for vehicles not used in the business, or for personal residences.
- Recurring charges for subscriptions, clubs, or services with no business purpose.
- Company staff time spent on personal projects, renovations, or errands.
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1 · Owner Withdrawals Disguised as Loans
Cash taken out of the company and recorded as a loan receivable instead of a distribution or salary.
2 · Gift Cards and Concealed Personal Spending
Gift cards bought as business expense and converted into anonymous personal spending power.
3 · Undisclosed Debt and Pledged Assets
Loans taken against company assets without partner knowledge or consent.
4 · Inventory Theft and Cash Skimming
The two oldest schemes — taking product before it is recorded, and taking cash before it is deposited.