Watch Those Company Credit Cards!
The former controller of a construction equipment company pleaded guilty to money laundering and wire fraud after embezzling $4.8 million from his employer. He used a company credit card to purchase cars, country club memberships, furniture, surgery and sports tickets. But most interesting, he used the largest single portion of the stolen funds, about $1 million, to play the addictive smartphone game, “Game of War.”
Using falsified records and other steps to hide the charges on the company credit card, he was able to keep the embezzlement scheme undetected for almost 7 years.
Monitor Company Credit Card Usage and Charges Closely
Embezzlers often go to great lengths to hide credit card abuse and can get away with it for long time if employers do not have the correct processes, procedures and oversight in place. To help minimize and prevent fraud, the following procedures should be considered for inclusion in any expense account or company credit card reconciliation process:
Segregate accounting duties so that different people or groups are dealing with expense receipt and payment
Conduct regular outside independent audits
Institute periodic spot audits on expense reports requiring manual review of receipts
Mandate review by a second reviewer when a particular card exceeds a preset number or dollar amount of charges in a single month
When Your Clients Do Experience a Crime Related Loss, Make Sure They’re Covered
Call Berkley Crime today, we’ll help you and your clients get the right coverage, quickly.
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