External Fraud

External fraud refers to malicious acts committed by individuals or groups outside an organization, aiming to deceive and gain unauthorized access to assets or information. This can include activities like identity theft, cyberattacks, credit card fraud, or forgery. In the context of operational risk management, organizations assess and implement measures to prevent and respond to such threats, ensuring the safety of their operations, protecting customer data, and safeguarding financial assets. Effectively managing external fraud risks is crucial for maintaining trust and integrity in business practices.