What type of fraud is characterized by employees manipulating company data?

The correct answer is occupational fraud, which refers specifically to fraud that is committed by individuals within the organization, typically employees, who manipulate the company’s data or financial information for personal gain. This form of fraud often involves actions such as misappropriating assets, falsifying records, or manipulating financial statements, all of which are perpetrated from within the organization.

Occupational fraud is particularly concerning because it can undermine the integrity of the organization’s financial data and may go undetected for years if proper controls and monitoring are not in place. The focus on employees manipulating company data underscores the internal threat posed by individuals with access to the organization’s systems and the ability to alter information for personal benefit.

In contrast, investment fraud generally involves deceit related to investments, often executed by individuals or companies to manipulate stock prices or mislead investors without direct data manipulation of the company involved. Securities fraud often focuses on the manipulation of financial information to mislead investors in the stock market but typically doesn’t emphasize employee actions within a corporation. Corporate fraud, while it can encompass a wide range of unethical practices within a corporation, is more broad and can involve various levels of employees or executives engaging in fraudulent activity that affects the organization or external stakeholders.

Therefore, occupational fraud accurately captures