For small businesses and enterprises, there are always risks of threatening by disloyal employees. During company formation in UAE, the biggest problem to becoming a successful business company is the fraud and scamming of workers. Even in a large business company or a small enterprise, there are always chances to get deceived in many ways. The owner of the company should keep an eye on the daily activities of employees or in some cases they can hire an intellectual property agent who will keep the company property safe and authorized. Some of the companies facing fraud are discuses below.
Table of Contents
Asset pilfering
There is a great chance of stealing the company property or assets like intellectual property, documentation, data, and finance. In this type of fraud, the company will face:
- False invoices against false selling
- Phony company employee
- Claim for the deceitful expense
Cyber-crime
In this type of scam, the company will face the misuse of its technology or hacking of the overall system. The employee may use the company technology in criminal activities. In this fraud following possibilities are there.
- The use of company documentation and credentials to rob the credit card details, bank accounts, and encrypted data of customers and the company.
- Using spyware or technology to rob the company of secret information.
- There may be the misuse of copyrighted intellectual property of a company.
Fraud in possession or procurement
Some companies work with a third party to purchase the product or services. In this whole process, the company has charged employees with different tasks when the employee deceives the company and took secret advantage of this process this will cause loss to the company. Such types of company frauds involve:
- Make corruption by choosing expensive services from third parties.
- Leaking the company information to the other bidders.
- Making fake purchase invoices
- Showing an expensive purchase in documents while originally purchasing a low quality and cheap material.
Infringement of intellectual property
There is always a risk of intellectual property rights violation on the company premises. The employees are mostly involved in the infringement of copyrighted products and information. The intellectual property agent can work for the company to keep the trademark, patent and copyright protected. In such fraudulent activity, there are different types of stealing and dishonest acts by the employees.
- Misuse and stealing of copyrighted work available online.
- The leak of trading information and encrypted data.
- Disclosing the product details and manufacturing process with competitors.
Corruption within and outside the company
There are many fake employees and dishonest workers who make money while doing corruption inside the company dealings or outside. Such fraudulent activities include:
Employees make sales and promotions on their own fixes.
Making references with the third party outside the company and holding contracts according to their own benefits.
Conclusion
While making any kind of manufacturer enterprise or a company formation in UAE, there are always the risks of being deceived and duped by the own employees and workers. The biggest loss to the company is when its trustworthy individuals do fraud and came up with disloyalty. For keeping the company data safe and protected one must hire an intellectual property agent who will claim the infringement against the employee.
