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Chapter 5: Check

Tampering

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What is CheckTampering?

Form of Fraudulent Disbursement

Employee does one of two things:

Prepares a fraudulent check for own benetCon!erts a check intended for someone else

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Check Tampering

"chemesCheck tampering

made up one#fourthof all fraudulentdisbursementcases$

%&' Checktampering caseswere reported( witha median loss of)'*(+++$

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Check Tampering

"chemesForged maker schemes

Forged endorsement schemes,ltered payee schemes

Concealed check schemes

,uthori-ed maker schemes

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Check Tampering .

/reakdown of Cases

0f %&' check

tampering casesreported( '+in!ol!ed forgeriesof a maker1ssignature$

Thirty#si2 casesin!ol!ed alterationsto the payee line ofcompany checks$

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Check Tampering #

3edian 4osses

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Forged 3aker "chemesPerp forges name of authori-ed signer

0btaining a blank check:Perp usually has access to blank checks

/ookkeeper( a5p clerk( o6ce manager( etc$Checks not secured

Perp wrongly obtains key( combination( password togain access

7oided checks not destroyedPrint counterfeit company checks

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"tolen Checks # Countermeasures

8eep blank check stock secured

"eal bo2es of blank checks with securitytape

9n!estigate out#of#seuence or duplicate

check numbers on bank statement;indicates stolen or counterfeit checkstockcash

To legitimate !endors ;purchasingpersonal items!oid

When statement arri!es( destroy bogus checks

Force totals on reconciliation ;add wrong