Preventing Cash Fraud – Introduction

Let’s start off with some terminology. There are two broad types of cash fraud:

  • Skimming
  • Larceny

Skimming refers to the stealing money before it appears on the books and records of the company or organization. Larceny refers to stealing money that has already been recorded on the books of the company.
The term cash means all types of easily negotiated assets. It includes cash, improper use of credit cards, writing unauthorized checks, kickback schemes, etc. It’s not just about the green stuff with pictures of Presidents.
I’ll keep this post short for emphasis:
At the end of the day, protecting cash is about some simple things:

  • Controlling access
  • Separation of duties
  • Verification
  • Creating a culture that makes it hard to steal
  • Vigilance (either actual or implied)
  • Internal controls

We’ll talk about these in future posts.