In this case of employee theft our client sustained a loss approaching $1 million over a period of years through a staffer’s access to funds and accounts. Take note, there’s a cyber security lesson here concerning insider threats.
A transport and warehousing business with operations in the state capitals and a number of regional towns across Australia, our client appointed the employee to a position of trust, responsible for handling accounts payable to subcontractors.
Their key functions included
checking and recording subcontractor invoices
allocating the invoices to particular jobs
reconciling all subcontractor invoices.
This closed loop in operations enabled the employee to exploit the company’s online banking facilities and pay over $600,000 into a bogus subcontractor account of their own. An additional sum of more than $70,000 was also stolen, and our client incurred almost $150,000 in bank fees for resultant overdrafts.
False billing accounted for 13,455 reported losses in the Australian Competition and Consumer Commission’s (ACCC) targeting scams report released in May 2018, a total sum of $2,796,980 in reported losses.