Con-Catchers Services

Here are the top 20 most common types of fraud committed at U.S. non-profits, ranked by frequency, financial impact, and prevalence in investigations and audit findings. These patterns are drawn from sources including the Association of Certified Fraud Examiners (ACFE), IRS oversight reports, and sector-specific investigations:

Rank	Fraud Type	Description
1	Embezzlement	Direct theft of funds by insiders, often through falsified checks, duplicated reimbursements, or skimming donations.
2	Payroll Fraud	Ghost employees, falsified timesheets, or inflated overtime claimed by staff or complicit managers.
3	Falsified Expense Reimbursement	Submitting fake receipts, inflating actual costs, or using personal expenses as business expenses.
4	Credit Card Misuse	Personal charges on organizational credit cards, often hidden by vague or falsified documentation.
5	Fake or Inflated Invoices	Vendors colluding with staff to overbill, or insiders creating dummy vendors for payment fraud.
6	Grant Fraud	Misuse or diversion of restricted grant funds, or submission of false information to obtain grants.
7	Kickbacks & Bribery	Staff receiving under-the-table payments in return for favorable treatment of vendors or contractors.
8	Financial Statement Fraud	Manipulating financial reports to hide losses, mislead donors, or qualify for funding.
9	Unauthorized Fund Transfers	Internal funds moved between accounts to obscure misappropriation or to hide deficits.
10	Conflict of Interest Violations	Undisclosed board/staff relationships with vendors, resulting in biased contracting or insider enrichment.
11	Program Service Fraud	Misrepresenting the extent, impact, or nature of services delivered to continue donor or grant funding.
12	Bid Rigging	Manipulating procurement processes so contracts are awarded to favored entities or insiders.
13	Donation Skimming	Cash donations or checks stolen before entry into the accounting system — often by frontline staff or volunteers.
14	Asset Misappropriation	Theft or misuse of physical assets (e.g., vehicles, computers, inventory) for personal use.
15	False Beneficiaries	Creating fictitious service recipients (e.g., students, patients) to divert funds intended for services.
16	Unauthorized Compensation	Excessive or hidden salary arrangements, bonuses, or unapproved raises for executives or insiders.
17	Nepotism and Favoritism	Hiring unqualified relatives or friends, often resulting in higher payroll and weaker controls.
18	Altered Bank Records	Forging or manipulating bank statements to mislead auditors or hide discrepancies.
19	Misuse of Restricted Funds	Using funds designated for specific purposes (e.g., endowments, capital projects) for operations or salaries.
20	Improper Lobbying or Political Activity	Engaging in prohibited political campaigns or lobbying with nonprofit funds, risking tax-exempt status