Fighting Fraud

Where There Is a Will There Is a Way — Fraud Schemes 119

Borrowing on Earned Interest

Borrowing on earned interest is a fraud scheme relating to corporations

with cash on deposit. If controls are inadequate, an employee may have

the ability to “borrow” the cash for personal use.

Avoidance of Other Losses or Expenses

Employees may have the ability to use company assets, in particular liquid

assets, for unauthorized purposes such as to avoid other losses or

expenses.

PAYROLL AND PERSONAL EXPENSES

The primary fraud schemes under payroll and personal expenses

include:

— Ghost employees

— Overtime abuses

— Withholding tax schemes

Ghost Employees

Ghost ...