When you hear the term “double check” fraud, you may think it sounds like something that is examined twice. In fact, if you do have two accountants checking the books for your Nevada company, it may be very difficult for either of them to get away with this type of fraud. Forbes magazine explains that it involves writing two checks for a single expense.
Typically, your accountant enters expenses into your system along with codes to identify them. He or she may easily write the check for the office’s supplies, and then write a second one using the same code, but make that check out to him- or herself. Even if these amounts are small, you could potentially lose hundreds or even thousands of dollars a month, depending on the size of your company, the expenses and how greedy your thieving employee is.
Particularly if you have a small business, it may be difficult to believe that one of your employees could jeopardize the company’s bottom line in this way. However, statistics show that it is all too likely. One in three small businesses is a victim of theft or fraud, and it is rare for an employee to be convicted.
If you do not have a second accountant, you may be able to uncover double check fraud yourself by matching the outgoing checks with copies of the bills. Going over the books yourself at random times throughout the year may be all it takes to discourage this type of theft. This information about business fraud is provided for educational purposes, and should not replace the advice of an attorney.