Authorized fraud refers to fraudulent activities conducted with the knowledge or consent of an individual who has legitimate access to financial resources or systems. In these cases, a person authorized to perform financial transactions, often an insider within an organization, intentionally participates in or allows fraudulent actions to occur. Authorized fraud can include activities such as embezzlement, insider trading, or colluding with external criminals for financial gain. Detecting and preventing authorized fraud requires robust internal controls, oversight, and monitoring to identify unusual or unauthorized activities.
