•
|
Theft of cash receipts. |
•
|
Under-the-table payments, bribes or kickbacks. |
•
|
Pay & Return – The employee purposely overpays a vendor. When the
vendor returns the overpayment, the employee embezzles the refund. |
•
|
Kickbacks – The vendor gives the manager money in return for awarding a
contract to the vendor or an inflated check is delivered to the vendor
and they split the overpayment. |
•
|
Tampering with checks issued (forged signatures, altered dates, adjusted amounts). |
•
|
Stealing blank checks or counterfeiting duplicate checks with altered payees. |
•
|
Creating and paying fictitious vendors. |
•
|
Shell Company – An employee sets up a shell company (often with a
fictitious name) and bills the employer for goods or services it does
not receive. The employee converts the payment to his/her benefit. |
•
|
Pass-Through Scheme – A shell company (owned by the employee) purchases
goods and resells them to the employer at a marked-up price. |
•
|
Creating inflated or phony expense vouchers. |
•
|
Theft of inventory. |
•
|
Altering purchasing, receiving or shipment records. |
•
|
Paying non-existent employees. |
•
|
Lapping – This involves the manipulation of accounts receivable to
steal cash. One payment is taken and then other receivables are applied
to the account – the process continues so all accounts would appear
current. |
•
|
Voiding checks – the employee writes a check to a vendor for a certain
amount, but records the payment as higher in the books. Then the next
check is written for the difference and entered as a void. When the
bank statement arrives the checks are destroyed and the account is
reconciled as if one payment was made for the higher amount. |
•
|
Credit card usage and credit card refunds – using the credit cards for
personal expenditures or purchasing and returning items, then using the
credit for personal expenditures. |