{"id":10871,"date":"2020-08-05T15:17:00","date_gmt":"2020-08-05T08:17:00","guid":{"rendered":"http:\/\/www.canary-whistleblowing.com\/?p=10871"},"modified":"2023-05-03T09:00:14","modified_gmt":"2023-05-03T09:00:14","slug":"3-types-of-fraud-in-the-mining-industry","status":"publish","type":"post","link":"https:\/\/www.canary-whistleblowing.com\/en\/blog\/3-types-of-fraud-in-the-mining-industry\/","title":{"rendered":"3 Types of Fraud in the Mining Industry"},"content":{"rendered":"<p style=\"text-align: justify;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10872 alignleft\" src=\"\/wp-content\/uploads\/sites\/5\/2020\/08\/fraud-in-mining-fraud-pertambangan.jpg\" alt=\"fraud in mining whistleblowing system\" width=\"432\" height=\"287\" srcset=\"https:\/\/www.canary-whistleblowing.com\/wp-content\/uploads\/sites\/5\/2020\/08\/fraud-in-mining-fraud-pertambangan-320x213.jpg 320w, https:\/\/www.canary-whistleblowing.com\/wp-content\/uploads\/sites\/5\/2020\/08\/fraud-in-mining-fraud-pertambangan-400x266.jpg 400w, https:\/\/www.canary-whistleblowing.com\/wp-content\/uploads\/sites\/5\/2020\/08\/fraud-in-mining-fraud-pertambangan-367x244.jpg 367w\" sizes=\"auto, (max-width: 432px) 100vw, 432px\" \/>Fraud can occur in companies from\u00a0any field, both\u00a0from\u00a0profit and non-profit companies. According to Report to The Nation 2020, there are 23 industries that\u00a0experience fraud cases, with the biggest\u00a0fraud losses occurring\u00a0in\u00a0the\u00a0mining industry\u00a0\u2014\u00a0although there were only 26 reported cases of fraud, the losses have reached $ 475,000.<\/p>\n<p style=\"text-align: justify;\">There are at least three common frauds\u00a0that\u00a0occur\u00a0in the mining industry, such as:<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>Financial statement fraud<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Almost all countries have laws governing the disposal of mining industry waste to prevent water and air pollution. Mining companies are required to preserve the ecosystem by minimizing the potential negative impacts on\u00a0the environment.<\/p>\n<p style=\"text-align: justify;\">This regulation requires companies to increase their operational funds by a large amount, such\u00a0that many of them do not fulfill the responsibility and manipulate the operational funds that should be allocated.\u00a0Companies can also conduct financial statement\u00a0fraud\u00a0by creating fictitious transactions\u00a0or mark-ups. This fraud scheme \u00a0usually occurs\u00a0when the companies fails\u00a0to pursue\u00a0their\u00a0financial target.<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>Licensing fraud<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Mining companies that carry out excavations in heavily forested areas often have to apply for licenses or government permits at a significant cost before they\u00a0are allowed to\u00a0cut down trees. However, many companies apply\u00a0for government permits after they have cleared\u00a0the land\u00a0\u2014 or some don&#8217;t even apply\u00a0for permission at all because they have falsified permits and licenses.<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>Occupational fraud<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Occupational fraud in the mining industry can occur through\u00a0many modes. It can be\u00a0as simple as stealing a company&#8217;s inventory,\u00a0to \u00a0more\u00a0complex frauds\u00a0such as financial statement fraud. The current pandemic\u00a0has caused the mining industry\u00a0to face a dramatic\u00a0decline due to reduced\u00a0production caused by\u00a0declining consumer demand. This\u00a0situation\u00a0can\u00a0potentially drive\u00a0employees and executives to commit fraud\u00a0to ensure that their income remains stable.<\/p>\n<p style=\"text-align: justify;\">Fraud in the mining industry can occur due to\u00a0a\u00a0lack of internal controls\u00a0both at the headquarters and in the fields. Internal controls need to be implemented comprehensively so that all workers do not overlook\u00a0the\u00a0established procedures and\u00a0to minimize the chance\u00a0for fraud.<\/p>\n<p style=\"text-align: justify;\">Integrity Indonesia as a company engaged in compliance for more than fifteen years has been trusted by clients in various fields to provide services that support clients in implementing internal controls, such as the <strong><a href=\"http:\/\/www.canary-whistleblowing.com\/\">Canary Whistleblowing System<\/a><\/strong>, due diligence, and fraud investigations. Prevent your company from losses, contact us for more information about other compliance services.<\/p>\n<p style=\"text-align: justify;\">Written by: Aqilla<br \/>\nImage by <a href=\"https:\/\/pixabay.com\/users\/xusenru-1829710\/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=1736293\">Khusen Rustamov<\/a> from <a href=\"https:\/\/pixabay.com\/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=1736293\">Pixabay<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fraud can occur in companies from\u00a0any field, both\u00a0from\u00a0profit and non-profit companies. According to Report to The Nation 2020, there are 23 industries that\u00a0experience fraud cases, with the biggest\u00a0fraud losses occurring\u00a0in\u00a0the\u00a0mining industry\u00a0\u2014\u00a0although there were only 26 reported cases of fraud, the losses have reached $ 475,000. There are at least three common frauds\u00a0that\u00a0occur\u00a0in the mining industry, [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":10872,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[115],"tags":[],"class_list":["post-10871","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"featured_image_src":{"landsacpe":["https:\/\/www.canary-whistleblowing.com\/wp-content\/uploads\/sites\/5\/2020\/08\/fraud-in-mining-fraud-pertambangan.jpg",640,426,false],"list":["https:\/\/www.canary-whistleblowing.com\/wp-content\/uploads\/sites\/5\/2020\/08\/fraud-in-mining-fraud-pertambangan-463x348.jpg",463,348,true],"medium":["https:\/\/www.canary-whistleblowing.com\/wp-content\/uploads\/sites\/5\/2020\/08\/fraud-in-mining-fraud-pertambangan-300x200.jpg",300,200,true],"full":["https:\/\/www.canary-whistleblowing.com\/wp-content\/uploads\/sites\/5\/2020\/08\/fraud-in-mining-fraud-pertambangan.jpg",640,426,false]},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>3 Types of Fraud in the Mining Industry - Canary Whistleblowing System<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.canary-whistleblowing.com\/blog\/3-types-of-fraud-in-the-mining-industry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"3 Types of Fraud in the Mining Industry - Canary Whistleblowing System\" \/>\n<meta property=\"og:description\" content=\"Fraud can occur in companies from\u00a0any field, both\u00a0from\u00a0profit and non-profit companies. According to Report to The Nation 2020, there are 23 industries that\u00a0experience fraud cases, with the biggest\u00a0fraud losses occurring\u00a0in\u00a0the\u00a0mining industry\u00a0\u2014\u00a0although there were only 26 reported cases of fraud, the losses have reached $ 475,000. There are at least three common frauds\u00a0that\u00a0occur\u00a0in the mining industry, [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.canary-whistleblowing.com\/blog\/3-types-of-fraud-in-the-mining-industry\/\" \/>\n<meta property=\"og:site_name\" content=\"Canary Whistleblowing System\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-05T08:17:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-03T09:00:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.canary-whistleblowing.com\/wp-content\/uploads\/sites\/5\/2020\/08\/fraud-in-mining-fraud-pertambangan.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"640\" \/>\n\t<meta property=\"og:image:height\" content=\"426\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Putri Pertiwi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Putri Pertiwi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.canary-whistleblowing.com\\\/blog\\\/3-types-of-fraud-in-the-mining-industry\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.canary-whistleblowing.com\\\/blog\\\/3-types-of-fraud-in-the-mining-industry\\\/\"},\"author\":{\"name\":\"Putri Pertiwi\",\"@id\":\"https:\\\/\\\/www.canary-whistleblowing.com\\\/#\\\/schema\\\/person\\\/d5a696ec1393b764d1257aadab45e13a\"},\"headline\":\"3 Types of Fraud in the Mining Industry\",\"datePublished\":\"2020-08-05T08:17:00+00:00\",\"dateModified\":\"2023-05-03T09:00:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.canary-whistleblowing.com\\\/blog\\\/3-types-of-fraud-in-the-mining-industry\\\/\"},\"wordCount\":415,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.canary-whistleblowing.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.canary-whistleblowing.com\\\/blog\\\/3-types-of-fraud-in-the-mining-industry\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.canary-whistleblowing.com\\\/wp-content\\\/uploads\\\/sites\\\/5\\\/2020\\\/08\\\/fraud-in-mining-fraud-pertambangan.jpg\",\"articleSection\":[\"Articles\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.canary-whistleblowing.com\\\/blog\\\/3-types-of-fraud-in-the-mining-industry\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.canary-whistleblowing.com\\\/blog\\\/3-types-of-fraud-in-the-mining-industry\\\/\",\"url\":\"https:\\\/\\\/www.canary-whistleblowing.com\\\/blog\\\/3-types-of-fraud-in-the-mining-industry\\\/\",\"name\":\"3 Types of Fraud in the Mining Industry - 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