Monday, October 25, 2010

Five Forms of Commercial Crime:

• Kiting: This is the process whereby cash, which is either nonexistent or in transit, is moved between several bank accounts.

• Skimming: Cash is removed from organization before transaction is recorded in the accounting systems.

• Misappropriation of funds: If one employee is responsible for collecting and depositing cash and then removes funds from the organization for their own use then conceals the theft through the deposits by destroying the cash receipts.

• False endorsements: This is whereby cheques are not properly cross and this gives an opportunity for staff to steal the cheques and endorse it on the back, to either have the cheque cashed or deposited into another account.

• Forging a signature on stolen cheques: Blank cheques are stolen from an organization and then used fraudulently by others such that original owner of the cheque or bank suffers a lost.

No comments:

Post a Comment