Employee Fraud Archives - Roger Rossmeisl, CPA

09 Aug 2022

5 Ways to Stop Employees from Colluding in Fraud

What happens if two or more individuals in your organization collude to commit fraud? According to the Association of Certified Fraud Examiners’ (ACFE’s) 2022 Report to the Nations, fraud losses rise precipitously. The median loss for a scheme involving just one perpetrator is $57,000, but when two or more perpetrators are involved, the median loss skyrockets to $145,000. When three or more thieves work together, it soars to $219,000. Unfortunately, collusion schemes are common — they make up approximately 58% of all fraud incidents. So these five steps are recommended: Enforce internal controls. Colluding thieves usually either ignore internal controls or take steps to hide noncompliance. For example, a colluding manager might override controls to allow another employee to commit expense reimbursement or payroll fraud. To...

02 Jun 2021

Something’s Wrong in your Office. Is it Fraud?

Roger Rossmeisl, CPA

Fraud Briefs

Somethings Wrong in your Office Is it Fraud

Not all red flags lead to active occupational fraud schemes. But when fraud is occurring, it usually leaves traces — for example, accounting anomalies — for fraud experts and other knowledgeable people to find. Owners and executives, as well as rank-and-file workers, should be familiar with the signs of fraud and know when to call in a forensic accounting specialist. Take a closer look Dishonest employees may use anything from fictitious vendors to false invoices to cover up theft. To ferret out potential fraud, always investigate duplicate payments, out-of-sequence entries, unusual inventory adjustments and accounts that don’t properly balance. Transactions for amounts that appear too large or too small, or transactions that occur too often or too rarely also merit a closer look. An increase in the number...

20 Feb 2020

Common Business Insurance Coverage Oversight

Roger Rossmeisl, CPA

Fraud Briefs

You may think your business has enough insurance already. What's a common business insurance coverage oversight? If you business is vulnerable to employee theft and fraud — and most businesses are — you may want to consider adding more coverage. Some insurance companies offer policies to protect against loss of money and property due to criminal acts by employees. Here’s how to decide whether your business needs one. Specialty coverage Employee dishonesty insurance can cover not only theft of money, property and securities, but also willful damage to property. If, for example, an employee smashes a computer or kicks a hole in a wall, it’s likely covered. And this type of policy covers losses from all employees. However, coverage generally is based on occurrences. So if more...

27 Jun 2019

Employee Conflicts of Interest

Roger Rossmeisl, CPA

Fraud Briefs

One of the governing principles of the employee/employer relationship is that employees have a fiduciary duty to act in their employer’s interests. Undisclosed employee conflicts of interest can be a serious breach of this duty. In fact, when employees aren't on your side, companies often suffer financial consequences. Employee conflicts of interest: ignorance isn’t bliss Here’s a fictional example of a common conflict of interest: Matt is the manager of a manufacturing company’s purchasing department. He’s also part owner of a business that sells supplies to the manufacturer — a fact Matt hasn’t disclosed to his employer. And, in fact, Matt has personally profited from the business’s lucrative long-term contract with his employer. What makes this scenario a conflict of interest isn’t so much that Matt has profited...

11 Feb 2019

(#497) Are Your Employees Flying the Red Flags of Fraud?

Roger Rossmeisl, CPA

Fraud Briefs

Forensic accountants are best qualified to unearth the “hows and whys” of occupational fraud. But it’s up to employers to know when it’s time to call for professional help in the first place. The signs of fraud can be easy to miss, but they’re usually there. Something doesn’t belong Dishonest employees may use anything from fictitious vendors to false invoices to cover up theft. To ferret out potential fraud, look for such signs as: Duplicate payments, Out-of-sequence entries, Entries by employees who don’t usually make them, Unusual inventory adjustments, Accounts that don’t properly balance, and Transactions for amounts that appear too large or too small, or transactions that occur too often or too rarely. An increase in the number of complaints your company receives is another warning sign....

5 Ways to Stop Employees from Colluding in Fraud

Something’s Wrong in your Office. Is it Fraud?

Common Business Insurance Coverage Oversight

Employee Conflicts of Interest

(#497) Are Your Employees Flying the Red Flags of Fraud?

ROGER ROSSMEISL, CPA

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