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.
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