Today we will explore the third category of occupational fraud: Fraudulent statements. The rarest of the three forms of occupational fraud, but by far the most costly, is the concoction of fraudulent statements. The median loss to employers through fraudulent statements in 2012 was $1 million, compared to corruption’s $250,000 and asset misappropriation’s $120,000. Fraudulent statements include situations in which a company misrepresents its financial reporting. Often referred to as “cooking the books,” fraudulent statements frequently include overstating a company’s revenues or downplaying expenses and liabilities. These forms of occupational fraud result in extraordinary damage done to businesses each year. The first step toward prevention is gaining a better understanding of the various ways in which your business may be targeted by fraud.