Financial Fraud in Commercial Companies

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Authors: Alina Melania Ionita, Mircea-Iosif Rus
Cited by: 0

Abstract

Financial fraud represents a significant threat to the financial integrity, performance, and reputation of commercial companies, with adverse effects on investor confidence and long-term sustainability. This study examines the main types of financial fraud encountered in the corporate environment, the key risk factors that facilitate their occurrence, and the most effective prevention and mitigation strategies. Using a qualitative analytical approach, the research synthesizes insights from existing literature and institutional reports to identify structural and organizational vulnerabilities associated with fraudulent behavior. The findings emphasize that preventive measures are more effective than reactive responses, highlighting the critical role of robust internal control systems, regular auditing, employee training, and the adoption of modern fraud detection technologies. Reducing the incidence of financial fraud can contribute not only to enhanced corporate governance but also to increased public budget revenues, which may support broader economic and social development objectives.

Fields of Study & Subjects

Corporate Governance and Financial Management Financial Literacy and Behavior Accounting and Financial Management

Publication details

Journal / source
Ovidius University Annals Economic Sciences Series
Volume
25
Issue
2
Pages
629–637
Publication date
10 February 2026
Language
EN