Fraudster puts double whammy on firm — total cost, $400k
You do everything you can to make sure A/P internal controls are followed. But there’s always a risk.
Just ask the consulting firm McKinsey & Company, which allegedly lost more than $400,000 to a crooked employee, according to Crain’s Chicago Business.
Unlike most fraudsters who stick with one trick to rip off employers, he used a couple of avenues.
His favorites: submitting fake invoices from a company he operated and submitting fake expense reports.
What’s more concerning is that this employee’s scams may have gone on for as many as eight years.
Beware the warning signs
Stronger controls and audits would have helped catch him earlier.
But beware other red flags, like:
- control issues, and
- refusals to take vacation.
An Association of Certified Fraud Examiners’ recent report identifies other red flags Finance should look out for.
- Share on
Free Training & Resources
Webinars
Provided by Yooz
Further Reading
One-week paycheck delays would leave nearly eight in 10 U.S. workers scrambling to cover bills, according to PayrollOrg’s 2025 Getting Pa...
Finance teams have always known expense fraud is a problem. What’s changed is the scale, the motivation, and the profile of who’...
With remote work here to stay, A/P has to work harder to verify crucial information, such as vendor bank account numbers. Unfortunately,...
Formulas are the backbone of Excel’s functionality, enabling you to perform calculations, analyze data, and create dynamic reports. Maste...
College students can’t stand the 150 credit hour requirement to sit for the CPA exam. Employers are desperate to find the next wave o...
The demand for finance chiefs is growing. Yet more companies are replacing their CFOs. Even so, CFOs are a lot less worried about AI taking...
