INTERNAL FRAUD COMMITTED BY EMPLOYEES IN INSURANCE SECTOR

The aim of this paper is to show the factors influencing fraud committed by insurance employees, especially those identified as leaders, because a good knowledge of the personality traits of potential perpetrators and their motives can help identify fraud and be put to good use by everyone working on fraud detection. The subject of this paper is a specific type of crime known in professional literature as white-collar crime. An employee who commits such a crime alone or in collusion with others may cause enormous damage to a company, ruin its reputation, and cause the loss of millions through embezzlement, provided that the fraud is detected, which rarely happens in practice. Furthermore, this paper will show basic theoretical assumptions which enable better knowledge and understanding of certain types of fraud perpetrated by employees in insurance companies. The overview of white-collar crime faced by most insurance companies provides a particular insight into scientific researches that have dealt with this issue to date and creates conditions for the prevention of this type of fraud in the insurance industry.

Keywords: frauds, insurance, leadership, white collars.