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fraud is not good at all to an organization, weather it is internal or external fraud. from my point of view internal fraud is more detrimental to an organization than external fraud. because, this a sign of weakness in control system inside the organization which allow internal fraud and external fraud as well.
Internal fraud is more detrimental to the interest of the organization.; It is just like the fence eating up the crop where the purpose of it is actually to protect the crop.
In my opinion the internal fraud is very dangerous because organization doesn't expect it . It is devastating to organization if exist .
External fraud is more detrimental for any organization, its shows lack of controls and inefficient Managements while internal fraud can be dealt by taking action, while external fraud proved to be costly.
internal fraud because internal people know more about weaknesses within the organization, and Usually they are trusted so their damage will be greater
Internal........because that can destroy the base of business....
I agree with Mr. answer VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
They are both detrimental to any organization, wether it's internal or external. However there are different ways to protect the organization from inside and outside. Most organizations focus on the external security, and work hard on it : securing themselves from the unknown and that's costly, but keep the insider vulnerable. Otherwise both deserve similar attention.
I agree with Mr. VENKITARAMAN & MR KHALD answers
Internal fruad since for exteral fraud we keep controls in place to ensure the liklihod remains very less but in case of internal fraud the staff intentionally ignores those process steps or controls and creates intentional deception which is very difficult to control