What is the difference between risk and fraud.

I have two questions.
1. What is the difference between risk and fraud.
2. What can be the possible cases of payment fraud.
3. What are the methods to detect the payment fraud.
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Steven HarrisPresidentCommented:
Sounds like you are needing or looking for a Risk Assessment...

1. What is the difference between risk and fraud.
Risk is defined as a situation or potential to expose someone or something to danger, harm or loss.

Fraud is defined as the wrongful or criminal deception intended to result in financial or personal gain.

Fraud Risk would be the chance of a perpetrator (or perpetrators) committing a fraud which has an impact on an organization or individual.  Hence, Risk Assessment.

2. What can be the possible cases of payment fraud.
-The oldest and most common is Cheque (Check) Fraud:
Counterfeit - cheques not written or authorized by legitimate account holder
Forged - Stolen cheque not signed by account holder
Altered - an item that has been properly issued by the account holder but has been intercepted and the payee and/or the amount of the item have been altered

-Email Fraud (phishing) is a type of scheme where fraudulent emails, web pages and/or text messages are used to gather sensitive, personal and financial information with the intent to steal [finances, identity, etc.].

-Debit Card Fraud is a type of scheme where the information contained on or within a debit card is stolen and used to obtain funds from an account without proper authorization.  Since debit cards can work without physical possession, they are easy to be manipulated.

-Credit Card Fraud is a bit like Debit Card Fraud; however, credit cards are not linked directly to a banking account, so they are used to take advantage of a person's credit line.
Counterfeit - duplicating legitimate credit cards which are then used for fraudulent activities
Card Not Present - unauthorized usage of credit card information for fraudulent activities over the internet, phone or mail
Lost/Stolen - unauthorized usage of a credit card as a result of it being lost or stolen
Identity Theft - obtaining personal or financial information of another person for the purpose of assuming that person's name to engage in fraudulent activities

3. What are the methods to detect the payment fraud.
-Positive Pay/Payee
-Account Reconciliation
-Securing Check Stock
-Check Data Structuring
-Universal Payment ID Code
-ACH Positive Pay
-ACH Blocking

Attached is a .pdf from North Dakota's www.nd.gov site.  Inside, you will find a Fraud Risk Assessment Form (Appendix A) they may be of value.

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