Guard Against Theft
Put a stop to pilfering, theft, and misappropriation

The goal of fraudsters is to steal, and theft includes not only cash, but pilfering of equipment, supplies, wages, diversion of payments, and gaining possession of other things of value.

According to the Association of Certified Fraud Examiners (ACFE), misappropriation of assets, better known as theft, is the most common type of fraud scheme perpetrated against organizations, with a median loss of $114,000 per incident.

 

Prevent

  • Develop strong internal controls to prevent, detect, and respond to fraud.
  • Set the tone from the top. Management should set appropriate ethical examples for employees.
  • Set up written policies and procedures for employees to follow and ensure that they are regularly reviewed.
  • Provide training and communications to ensure that every employee is aware of what constitutes a fraudulent activity and what the consequences are.
  • Ensure employees know what to do if they suspect fraud and where to report it.

Detect

  • Carry out inventory counts on a regular basis and verify against the asset registry.
  • Review purchases for trend analysis and investigate irregularities.
  • Perform a three-way match of invoice, purchase order and receiving report to ensure the organization is paying for correct and legitimate purchases.
  • Secure access to physical equipment.
  • Consider separating ordering from receiving and management of supplies to increase the number of touchpoints.
  • Consider locked storage and regular inventory counts for expensive supplies
  • Limit high cost product ordering to no more than two items, one for use and one for backup.
  • Review BearBuy reports to determine if expenses are appropriate for those that have by-passed approval process.
  • Review and have a robust approval process for any changes to bank account and routing numbers. An example would be:
    • Prior to making bank account changes, a call should be made to the vendor to substantiate both the old bank account and routing number and the new bank account and routing number. Retain and review supporting documentation.
  • Implement a control - reviewing budget to actual and investigating variances.
  • Segregate cash handling functions to different individuals: authorization, recording, and custody.

Inform

If you suspect fraudulent activity leading to the theft of assets or information: