Internet Banking Fraud  Clive Peeters Case Essay

One of the most prevalent forms of employee fraud that we have been viewing for quite some time requires access to net banking. Businesses often have two signatories intended for company cheques but allow full sole user use of their internet banking. The result is an accident holding out to happen. An internet banking fraudulence of $20 million was reported today in the Sydney Morning Herald engaged the payroll manager of listed light goods store, Clive Peeters. Full tale: http://business.smh.com.au/business/employee-admits-stealing-20m-20090811-eh02.html In this case, the salaries manager used proceeds of her scams in property and autos, so the firm is hoping to recover some or all of their monies. In most cases that we get seen, the cash is spent or gambled and their is extremely little or perhaps nothing to restore. Other commonalities to the situations that we have found:

•the volume of the fraud is always bigger than expected. The estimates with the Clive Peeters fraud went from $2 million to $7 million to 20 dollars million. •the fraud was conducted on the longer period than anticipated. The current estimate is that the fraudulence was functioning for 18 months. It is vitally important where a organization is employing internet banking that a two signatory approval for any obligations or exchanges is set up. The standard net banking computer software provided by the banks can be inadequate for business use because it lacks the necessary internal regulates. Speak to your financial institution about obtaining the higher security, multiple signatory version of sites banking. Unfortunately, in our experience, it is not easy to have and you have to speak to many persons in the lender before you get an individual you is aware anything about that.