The online magazine of the Association of Certified Fraud Examiners is a great resouce for tips on uncovering the varying forms of business fraud. You can click here to view it.
A recent issue of the magazine had a very informative article about how certain types of documents are susceptible to employee forgies and other frauds . The article had this to say about fax invoices:
Facsimile documents, even though they’re reproductions of original documents, are considered original source documents. So fraud perpetrators often use them to support fictitious disbursement transactions because internal reviewers or even external auditors aren’t likely to question them. Faxes obviously still have a legitimate purpose for emergency or other rush transactions. However, the organization should always require that vendors subsequently mail the original source documents to them. The staff should hold the faxes until the original source documents have been received and then file them with any other documents supporting the disbursement transaction.
Unscrupulous employees might use the organization’s fax machine to send themselves vendor invoices. So always double check the vendor’s fax telephone number shown on the top of the facsimile with numbers in the organization’s vendor file, in the telephone book, or from the vendor’s website. And be suspicious if the number is missing; fraud perpetrators might have removed it from the faxed document before processing it. A fax in the file doesn’t necessarily mean the transaction is valid.
DiTommaso-Lubin’s Chicago business trial lawyers have more than two and half decades of experience helping business clients on unraveling complex business fraud and breach of fiduciary duty cases. We work with skilled forensic accountants and certified fraud examiners to help recover monies missappropriated from our clients. Our Chicago business, commercial, and class-action litigation lawyers represent individuals, family businesses and enterprises of all sizes in a variety of legal disputes, including disputes among partners and shareholders as well as lawsuits between businesses and and consumer rights, auto fraud, and wage claim individual and class action cases. In every case, our goal is to resolve disputes as quickly and sucessfully as possible, helping business clients protect their investments and get back to business as usual. From offices in Oak Brook, near Waukegan, and Elmhurst, we serve clients throughout Illinois and the Midwest.
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