Preventing and Detecting Asset Misappropriation Frauds

Investigate asset misappropriation through skimming, the cash theft before recording by cashiers and other cash handlers. See how receipt skimming and register manipulation create unrecorded sales and losses.

Detect skimming using vertical and horizontal analysis, ratio indicators, and journal-entry verification; prevent it with segregation of duties, balance confirmations, restrictive endorsements, pre-numbered stationery, and strict discount and write-off approvals.

Examine larceny and its distinction from skimming, explore cash larceny schemes such as cash register manipulation, cheque larceny, and deposit lapping, and review detection and prevention techniques.

Explore fraudulent disbursement through the registered disbursement scheme, including false refunds and fictitious refunds, and learn red flags like inventory shrinkage and poor segregation of duty.

Explore check tampering schemes in payment fraud, including forged payees, signature forgery, endorsements, interception, altering payees, and false journal entries, and learn how weak controls enable concealment.

Learn to detect and prevent check tampering with bank reconciliation statements, red flags like missing or altered checks, and controls such as safe custody and positive pay.

Explore how electronic payment tampering occurs via social engineering in EFT and why employee training, awareness, and strong password practices are essential to prevent online payments fraud.

Billing schemes enable fraudulent disbursement by disguising payments as routine transactions, using existing vendors or shell companies, inflating purchases, and diverting goods or funds for personal use.

Identify shell companies as fraud vessels with no physical presence or employees, using forged documents to open bank accounts and siphon funds. Detect through cross-referencing addresses and invoices for collusion.

Explore pass through schemes and other fraud methods used in asset misappropriation, including shell companies, forged service invoices, duplicate payments, inflated orders, and personal purchases.

Leverage data analytics to detect expense reimbursement fraud amid high volume and velocity, using duplicate invoices and vendor patterns, then enforce segregation of duties and ethical training for prevention.

Identify payroll fraud schemes like ghost employees paid for not working and falsified hours or commissions. Detect and prevent through robust auditing, government IDs, data analytics, and segregation of duties.

Explore how inventory and other assets, including intangible assets, are vulnerable to misappropriation, such as shrinkage and larceny, and learn detection through random physical counts, kpis, and data security.