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Fraud can occur in companies from\u00a0any field, both\u00a0from\u00a0profit and non-profit companies. According to Report to The Nation 2020, there are 23 industries that\u00a0experience fraud cases, with the biggest\u00a0fraud losses occurring\u00a0in\u00a0the\u00a0mining industry\u00a0\u2014\u00a0although there were only 26 reported cases of fraud, the losses have reached $ 475,000.<\/p>\n
There are at least three common frauds\u00a0that\u00a0occur\u00a0in the mining industry, such as:<\/p>\n
Almost all countries have laws governing the disposal of mining industry waste to prevent water and air pollution. Mining companies are required to preserve the ecosystem by minimizing the potential negative impacts on\u00a0the environment.<\/p>\n
This regulation requires companies to increase their operational funds by a large amount, such that many of them do not fulfill the responsibility and manipulate the operational funds that should be allocated. Companies can also conduct financial statement fraud by creating fictitious transactions or mark-ups. This fraud scheme usually occurs when the companies fail to pursue their financial target.<\/p>\n
Mining companies that carry out excavations in heavily forested areas often have to apply for licenses or government permits at a significant cost before they\u00a0are allowed to\u00a0cut down trees. However, many companies apply\u00a0for government permits after they have cleared\u00a0the land\u00a0\u2014 or some don’t even apply\u00a0for permission at all because they have falsified permits and licenses.<\/p>\n
Occupational fraud in the mining industry can occur through many modes. It can be as simple as stealing a company’s inventory, to more complex frauds such as financial statement fraud. The current pandemic has caused the mining industry to face a dramatic decline due to reduced production caused by declining consumer demand. This situation can potentially drive employees and executives to commit fraud to ensure that their income remains stable.<\/p>\n
Fraud in the mining industry can occur due to\u00a0a\u00a0lack of internal controls\u00a0both at the headquarters and in the fields. Internal controls need to be implemented comprehensively so that all workers do not overlook\u00a0the\u00a0established procedures and\u00a0to minimize the chance\u00a0for fraud.<\/p>\n
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 controls, such as the Canary Whistleblowing System, due diligence, and fraud investigations. To prevent your company from losses, contact us<\/a><\/strong> for more information about other compliance services.<\/p>\n <\/p>\n Also Read:<\/strong><\/p>\n 3 Methods That Fraudsters take to Fake Documents<\/a><\/strong><\/p>\n Fraud Red Flags You Should Recognize at Work<\/a><\/strong><\/p>\n <\/p>\n <\/p>\n <\/p>\n Written by: Aqilla Fraud can occur in companies from\u00a0any field, both\u00a0from\u00a0profit and non-profit companies. According to Report to The Nation 2020, there are 23 industries that\u00a0experience fraud cases, with the biggest\u00a0fraud losses occurring\u00a0in\u00a0the\u00a0mining industry\u00a0\u2014\u00a0although there were only 26 reported cases of fraud, the losses have reached $ 475,000. There are at least three common frauds\u00a0that\u00a0occur\u00a0in the mining industry, […]<\/p>\n","protected":false},"acf":[],"featured_image_url":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-content\/uploads\/sites\/3\/2020\/07\/fraud-in-mining-fraud-pertambangan.jpg","_links":{"self":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts\/6226","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/comments?post=6226"}],"version-history":[{"count":0,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts\/6226\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/media\/6227"}],"wp:attachment":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/media?parent=6226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/categories?post=6226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/tags?post=6226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nImage by Khusen Rustamov<\/a> from Pixabay<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"