Bank Directors Seminar, Coeur d'Alene, ID

11/09/2018

Fraud Schemes

Asset Misappropriation • Cash Receipts Theft • Larceny • Skimming • Fraudulent Disbursements

Corruption • Kickbacks / bribery • Conflicts of interest

Financial Statement Fraud • Fictitious revenues • Timing differences • Concealed liabilities / expenses • Improper asset valuations • Improper / omitted disclosures

• Check tampering • Billingschemes • Payroll schemes • Expense reimbursement schemes • Register disbursement schemes

Methods of Fraud Frequency of Schemes with Average Losses

% of Cases

10%

AssetMisapprorpriation($114,000)

38%

Corruption ($250,000)

FinancialStatementFraud ($800,000)

89%

2018ACFE Report to the Nations

Banks are Vulnerable

#1 Industry

$110,000 Median Loss

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