Corporate Fraud Handbook, 5th Edition

CHAPTER 6Register Disbursement Schemes

OVERVIEW

So far we have discussed two ways in which fraud is committed at the cash register: skimming and cash larceny. These schemes are what we commonly think of as theft. They involve the surreptitious removal of money from a cash register. When money is taken from a register in a skimming or larceny scheme, there is no record of the transaction (unless or until the thief takes separate steps to conceal the scheme)—the money is simply missing.

In this chapter, we discuss fraudulent disbursements at the cash register. These schemes differ from the other register frauds in that when money is taken from the register, the removal is recorded on the register. A false transaction is recorded as if it were a legitimate disbursement to justify the removal of money. Bob Walker's fraudulent refunds in the next case study were an example of such a false transaction.

Two basic fraudulent disbursement schemes take place at the register: false refunds and false voids. Although the schemes are largely similar, there are a few differences between the two that merit discussing them separately.

Case Study: Demotion Sets Fraud in Motion

Following a demotion and consequent pay cut, Bob Walker¹ silently vowed to even the score with his employer. In six months Walker racked up $10,000 in ill‐gotten cash from his employer, who was caught completely off ...