Fuel Stocks
A local authority had their own fuel pumps for supplying their motor vehicles. The employee in charge stole fuel over a long period as the stock checks were inadequate.
Total Loss: £25,000
Bogus Employees
The manager of an industrial cleaning company invented bogus employees and cashed their pay cheques, which were uncrossed.
Total Loss: £10,000
Bank Deposits - teeming and lading
A clerk in charge of a sub post office stole cash receipts due to be paid into the Bank. This was covered up by delaying submission of deposits and altering the paying-in slips relating to subsequent deposits. This is known as teeming and lading.
Total Loss (in 10 months): £7,000
Cheque writing machine
A 27 year old ledger clerk responsible for regular payment of rents for advertising sites had charge of a cheque writing machine. Numerous small cheques were made out by him for the correct amounts but in his own name. It was several months before complaints from creditors were investigated.
Total Loss £25,000
Stock Control System
A well known national company was defrauded by two gangs of employees working at the same location. The losses involved collusion between warehouseman and drivers who used the spare capacity on vehicles to remove goods from the depot.
False information was entered into the computerised stock control system and their activities were only discovered when the police reported finding large amounts of the particular product in the hands of receivers.
Total Loss £1 million
Fictitious Sub-Contractors
A major contractor with well established control systems to vet payments were the victims of fraud by section supervisor in collusion with computer operator. Cheques were made out to fictitious sub-contractors and despatched to accommodation addresses.
Total Loss exceeded £500,000
Bills of Exchange
A company exporting comparatively low value agricultural products throughout the world accepted payment by Bills of Exchange. They were the victims of an international fraud passing counterfeit bills and one of their own employees was implicated.
Total Loss exceeded £5 million
These claims illustrate that:
- At best, the consequence of fraud may just disrupt normal business activity; at worst, they may undermine it completely
- Fraud can be very costly
- Your stock is always at risk
- You cannot be sure of the integrity of long-serving or senior employees
- No system is foolproof
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Corporate &
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