Assignment 1-6 Skimming Scheme Case

8/18/2019 Assignment 1-6 Skimming Scheme Case

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1 Assignment 1-6

Skimming Scheme Case

Assignment 1-6

ACCT341-E1WW

Professor Filler

Januar 14! "#1"



Create a list of at least 1# suggeste$ im%ro&ements for 'ogel(s )nc* that +oul$ hel%

%re&ent a similar skimming scheme from occurring* For each im%ro&ement! in$icate +h this

+ill hel% %re&ent a skimming scheme similar to this from ha%%ening again at 'ogel(s*

,1 Stefan Winkler use$ a metho$ of force .alancing to tr to co&er u% his scheme* When

%aments +ere recei&e$ he %oste$ %ament to customer(s accounts .ut ne&er $e%osite$ the

mone into 'ogel(s account* This coul$ ha&e .een a&oi$e$ if 'ogel(s ha$ another em%loee

reconcile its .ank statements regularl an$ toughl* Accor$ing to Wells! +hen an in$i&i$ual

skims recei&a.les .ut continues to %ost %aments to customer accounts! %ostings to accounts

recei&a.le +ill e/cee$ +hat is reflecte$ in the $ail $e%osit* ,%age 60*

," Winkler also use$ the metho$ of la%%ing to conceal his skimming as +ell* e +oul$ steal

customer A(s %ament then %ost customer 2(s %ament to A(s account an$ so forth * 'ogel(s

shoul$ ha&e an em%loee s%ot check $e%osits to accounts recei&a.le to make sure that %aments

are .eing a%%lie$ to the correct accounts* Wells im%lies! )f a check +ere recei&e$ . Customer A

.ut the %ament %oste$ to Customer 2(s account! this +oul$ in$icate a la%%ing scheme* ,60*

,3 'ogel(s coul$ ha&e notice$ something +as sus%icious . ho+ Winkler +as such a mo$el

em%loee* )n or$er to co&er u% his schemes! Winkler ha$ to come to +ork e&er$a to make

sure no one else +as looking at his .ooks* )t(s sa$ to think that our mo$el em%loee +oul$ .e

stealing from ou* Wells %oint +ith this is a la%%ing scheme can onl succee$ through the

constant &igilance of the %er%etrator* ,66* 'ogel(s shoul$ make their em%loees take a &acation

once a ear or regularl rotate 5o. $uties among em%loees* Accor$ing to Wells! .oth of these



tactics can .e successful in unco&ering la%%ing schemes .ecause the effecti&el take control of

the .ooks out of the %er%etrator(s han$s for a %erio$ of time +hen this ha%%ens the la%%ing

scheme +ill 7uickl .ecome a%%arent* ,66

,4 Winkler use$ +rite offs as et another +a to conceal his skimming scheme* e +oul$

frau$ulentl +rite off customer accounts as %ossi.l .a$ $e.ts! . $oing this he +as a.le to

+i%e the stolen fun$s off the .ooks* As state$ . Wells! if the %erson +ho recei&es an$ recor$s

customer %aments has no authorit to make these 5u$gments! the %ercei&e$ o%%ortunit to

commit the crime is se&erel $iminishe$* ,66 'ogel(s shoul$ in the future make sure that the

%erson +ho has authorit to +rite off accounts as uncollecta.le! or .a$ $e.ts! is not the %erson

+ho collects an$ recor$s %aments*

Accor$ing to Wells! it is im%ortant for organi8ations to %roacti&el search out accounting clues

that %oint to frau$* This can .e te$ious! time consuming +ork! .ut com%uteri8e$ au$it tools

allo+ man organi8ations to automate these tests an$ greatl ai$ in the %rocess of searching out

frau$ulent con$uct*,66*

,0 'ogel(s coul$ match the customer master file to the em%loee master file on &arious ke

fiel$s* The +oul$ +ant to com%are tele%hone num.ers! a$$resses! ta/ )9 num.ers! P: 2o/es!

an$ 8i% co$es in customer file to em%loee file! es%eciall for em%loees +orking in the accounts

recei&a.le $e%artment* ;uestiona.le customer accounts shoul$ .e re&ie+e$ to ensure the are

not %hon accounts ma$e as %art of a la%%ing scheme* ,Wells! "#11* <ooking for these t%e of

accounts +oul$ $efiantl hel% 'ogel(s in the future . $etecting fake accounts*



,6 'ogel(s coul$ %erio$icall summari8e access for their sales! accounts recei&a.le! in&entor!

an$ general le$ger sstems in non.usiness hours* Accor$ing to Wells! man times concealment

a$5ustments are ma$e in non.usiness hours* =ser access shoul$ .e re&ie+e$ from the

%ers%ecti&e of a$5ustments +ithin the a%%lication an$ a$5ustments to the $ata it(s self* ,6>* )f

'ogel(s %erforms checks on the access of their sstems! the coul$ i$entif +ho access +hat

accounts an$ +hat the are %ossi.l $oing *

,? 'ogel(s coul$ ac7uire an in&oice +ith %artial %aments* Wells states that em%loees +ho

are using la%%ing to hi$e their skimming scheme ma fin$ it $ifficult to a%%l a %ament form

one customer to another customer(s in&oice in a full reconcile$ fashion*,6@* )f 'ogel(s ha$

$one this all along! 'r* Winkler +oul$ ha&e either .een caught right a+a! or he +oul$ ha&e

ne&er attem%te$ his skimming scheme! at least using la%%ing to co&er u%*

,> 'ogel(s coul$ ac7uire o%en customer in&oices that are in a cre$it %osition* Accor$ing to

Wells! customers +ith a cre$it %osition account ma .e $ue im%ro%er cre$it entries %oste$ to the

customer account in or$er to hi$e a skimming scheme* ,6@* As state$ ! . ac7uiring these

in&oices! 'ogel(s coul$ i$entif a %ossi.le skimming scheme*

,@ 'ogel(s coul$ e/tract customers +ith no tele%hone or ta/ )9 num.ers* Customers +ithout

this information ma ha&e .een create$ for use in %osting im%ro%er entries in or$er to hi$e a

skimming scheme* ,Wells! "#11* )f 'ogel(s ac7uires a list of customers +ith missing $ata! the



can in&estigate +ho these customers are! an$ either get the missing information or as state$ .

Wells! unco&er a skimming scheme*

,1# An$ lastl! 'ogel(s coul$ look for ne+ customers +ho ma ha&e .een a$$e$ $uring the

%erio$ un$er re&ie+* Accor$ing to Wells! the issuers of ne+ customer a$$itions shoul$ .e

re&ie+e$ using the re%ort to $etermine +hether an em%loee is using a %hon customer account

as %art of a la%%ing scheme . cre$iting that account for cash misa%%ro%riation*,6@* 2

checking ne+ customers! 'ogel(s +oul$ ha&e a .etter chance of i$entifing a la%%ing scheme*

There are 7uite a fe+ things 'ogel(s coul$ $o to %re&ent skimming schemes from ha%%ening

+ithin their com%an in the future* :ne thing for sure is the shoul$ make sure the se%arate the

$uties of the accounts recei&a.le $e%artment! an$ make sure the %erform more fre7uent checks*



eferences

Wells! Jose%h T* ,"#11* Princi%les of Frau$ E/amination* Thir$ E$ition* John Wile an$ Sons!)nc* o.oken! BJ

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Assignment 1-6 Skimming Scheme Case