May 14, 2008
How to Stop Bank Deposit Fraud
by: Tammy McGaughy, Partner
It’s
a story heard much too often in the business community: Somewhere between the
cash register and the bank account, money goes missing.
Bank deposit fraud is pervasive enough that banks have implemented stronger measures to identify and mitigate it. But banks have no control over what your employees may be doing.
Follow procedures
To stop unscrupulous employees from perpetrating fraud, you must be diligent in monitoring the procedures that get your money to the bank. Make sure multiple people are involved in routine banking transactions. Don’t let the same person prepare the deposit, enter it in the books and reconcile statements.
Also, be sure that at least two people prepare and deliver every deposit — and that if cash is involved, deposits are made daily. Don’t leave deposits unattended before they go to the bank, either; lock them in a safe.
If possible, verify deposit transactions every day, too. Be sure original records of payments received match deposit amounts, and compare deposit slips to the actual amounts deposited. Online access to account information can speed this task. Finally, use monitoring and surveillance to detect evidence of altered records and to discourage would-be scam artists.
Look for the unexpected
A determined and sophisticated fraudster can sometimes evade even the best monitoring system. So look for the unexpected. Check if receipts, statements or deposit slips show signs of being altered, and be sure deposit receipts and statements match internal records. Also watch for deposits that aren’t made in a timely manner — delays can indicate that someone needs time to steal his or her piece of the corporate pie.
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