Unauthorized personal use of a company vehicle is considered which type of fraud?

Unauthorized personal use of a company vehicle falls under the category of asset misappropriation. This type of fraud involves the theft or misuse of an organization’s assets for personal benefit. When an employee uses a company vehicle for personal purposes without authorization, they are effectively taking an asset of the company (the vehicle) and using it in a way that is not intended or approved by the organization. This misappropriation can lead to financial loss for the company, as it incurs costs related to fuel, maintenance, and added depreciation on the vehicle.

Asset misappropriation is the most common form of occupational fraud, and it encompasses various behaviors, including theft of cash, inventory, and other resources. In this scenario, the employee’s action showcases a clear example of misappropriating company assets for personal gain. The other types of fraud listed, such as conflict of interest or regulatory breach, do not specifically address the unauthorized use of a company’s asset like a vehicle in the same direct manner.