To whom is the made Signed check given to payable? Employee to mail To the Employee (most Alter delivery address Change payee and/or – common) easier to detect check mailed to Employee amount than payments to others book example of When cashed check To an accomplice password access returned with bank To not being updated statement, Employee “cash” To legitimate vendors for new job restores original name, (purchasing personal items) assignment. amount To fictitious person or A common entity problem in Erasable INK. Which would you choose and automated Book example why? information Get owner to sign Forging the signature systems. small checks Free-hand forgery Converting the stolen Change payee and overlooked by retail check: amount businesses Forge endorsement Charge Sometimes easy to do with Smaller amounts disbursement to signature work better as ID is large vendor “simple” Photocopy legitimate less likely to be How / where would this be signature onto check requested detected? Also can allow employee Dual endorsement to change the payee of Should be a check in the accounting for most records. normal Old carbon copy scam. disbursements Signature stamps / check signing machines Computer-generated signatures Miscoding fraudulent checks to wrong account # How is fraud concealed:? How is fraud concealed:? How is fraud concealed:? How is fraud concealed:? How is fraud concealed:?
To whom is the made payable? To the Employee (most common) easier to detect than payments to others To an accomplice To “cash” To legitimate vendors (purchasing personal items) To fictitious person or entity Which would you choose and why? Forging the signature Free-hand forgery overlooked by retail businesses Sometimes easy to do with “simple” signature Photocopy legitimate signature onto check Also can allow employee to change the payee of check in the accounting records. Old carbon copy scam. Signature stamps / check signing machines Computer-generated signatures Miscoding fraudulent checks to wrong account # Alter delivery address – check mailed to Employee book example of password access not being updated for new job assignment. A common problem in automated information systems. Converting the stolen check: Forge endorsement Smaller amounts work better as ID is less likely to be requested Dual endorsement Should be a for most normal disbursements Signed check given to Employee to mail Change payee and/or amount When cashed check returned with bank statement, Employee restores original name, amount Erasable INK. Book example Get owner to sign small checks Change payee and amount Charge disbursement to large vendor How / where would this be detected? How is fraud concealed:? How is fraud concealed:? How is fraud concealed:? How is fraud concealed:? How is fraud concealed:?
Check_Tampering_Chart.docx