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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
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