Fraud in Houses of Worship
Through
my ongoing research, I came across an article that sparked my interest “ Fraud
in Houses of Worship”. The article details a former church secretary defrauding
a 200 member church congregation for 18 months by writing herself duplicate
paychecks, stealing cash from donation deposits and taking credit card accounts
in the church name, among other schemes.
In
the current economic climate, am not surprised to see an uptick in this type of
fraud, fraud examiners who are incharge of church finances and internal controls may
be labelled as overreacting conspiracy theorist, when they tell church staffs
they may have fraudsters in their midst, however fraud examiners know fully
well that fraud can occur anywhere and
at anytime.
Proper
segregation of duties, effective internal control system in place and a proper
employee background check would have identified a serious red flag for fraud
but the church left it rather late.
If
you would like to discuss this case, or any other fraud related topic, I invite
you to contact me via email, contact@emgfraudconsulting.co.uk
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