The early warning signs of fraud are usually always ignored. There are warning signs for every type of fraud. To understand the warning signs of fraud, we first need to know what fraud is. Fraud is the intent to deceive someone or lie to someone in order to obtain financial gain. This definition varies depending on the type of fraud used, but the person committing the fraud is always seeking financial gain. There are many types of fraud. There is Medicare fraud, Internet fraud, mortgage fraud, loan fraud, tax fraud, embezzlement, forgery, insurance fraud, and marriage fraud. These are just a few types of fraud. There are many other types of fraud, and new ones are committed every day. This paper will focus on different types of fraud. The different types that will be discussed are medical identity theft, medical identity theft, corporate fraud, inventory fraud, Ponzi schemes, charity scams, miracle cure scams, and identity theft. Each type of fraud will lead to a discussion about what fraud is, how it happens, what the warning signs of fraud are, and what you can do to protect yourself. Medical identity theft is becoming more of a problem every day. This type of fraud can be listed as a subcategory under Medicare fraud. Medicare fraud is one of the most well-known types of fraud and “is the intentional billing of Medicare for services that were never provided or received” (1). Doctor impersonation may also be listed as a subcategory of identity theft. Identity theft is when “the use of another's personal information without permission” (1). Doctor identity theft can be described as when “the thief uses the doctor's identification card for fraudulent purposes” (2). This can go… halfway through the paper… then you might start asking questions. The cost of goods will have to increase to recover the lost money. This could be a sign of inventory fraud. Your gross margins may decline significantly. Journal entries may start to look unusual or run late. Identifying fraud early is the important thing. Some ways to prevent inventory fraud would be to “test for quantity, compilation, and valuation” (12). Put safety measures in place for employees. Install security cameras in your store and warehouse. Make sure each employee has a separation of duties. All cancellations must be approved and verified by a supervisor. Hire an outside inventory company to run inventory. Be sure to let your employers know that fraud will not occur and what the consequences are if fraud occurs. Also set ethical standards for your employer.