Term
What is False Refund Scheme? |
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Definition
A scheme in which a fraudulent refund is processed at the cash register to account for stolen cash. |
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Term
What is a Fictitious refund scheme? |
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Definition
A false refund scheme in which an employee processes a fake refund transaction as if a customer were actually returning merchandise, and pockets the cash. |
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Term
What is an Overstated refund scheme? |
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Definition
A false refund scheme in which an employee overstates the amount of a legitimate customer refund, gives the customer the actual amount of the refund and steals the excess. |
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Term
What is a register disbursement scheme?
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Definition
There are two basic disbursement schemes that take place at the cash register:
False Refunds
False Voids |
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Term
| In the Register Disbursement "Demotion sets fraud in Motion" How did Bob Walker the demoted employee committ his scheme? |
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Definition
| He failed to record customer's phone #, neglected to attach sales receipts to the refund log. |
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Term
What did the invesgator look at when he started looking into the case.
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Definition
He looked at the inventory.
He compared the# of refunds for the item returned, food processors to the number originally received in shipment minus those sold. Then compared with the food processors actually in stock. |
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Term
| What happened to Bob Walker, the fraudster who was unhappy about being demoted. |
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Definition
| He made bail, then ran and disappeared without a trace. |
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Term
| When money is taken from a register in a skimming or larceny scheme |
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Definition
| There is no record of the transaction the money is simply missing, |
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Term
| According to the 2006 or 2004 National Fraud Survery Register Disbursement Schemes are.. |
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Definition
were reported less frequently than any other fraudulent disbursement scheme. They accounted for about 3 percent of the fraudulent disbursements, they are 2nd least costly with expense reimbursement being the least costly.
see page 198 |
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Term
| In a Register Disbursement Scheme what is the result to inventory? |
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Definition
Inventory is overstated because no merchandise is returned. Inventory is larger than it actually is. |
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Term
| In the "Silent Crime" with the 15 hour a week shoe sales man how did he committ the scheme? |
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Definition
| He used friends and relatives credit cards to ring up the refunds and then split the money. He would credit the car and then the other person would go to the ATM and withdraw the money from the credit. |
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Term
| What did the "Silent Crime" fraudster, Russ Rooker have on him when he was arrested? |
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Definition
| He had $5,000 in cash, and a list of 15 third-party credit cards. |
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Term
| How did they stop Russ Rooker, the "Silent Crime" shoe salesman? |
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Definition
| They had to get a couple in Detroit to turn state's evidence. The Secret Service got involved in the case because the case was so large. |
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Term
| What does the fraudster need to committ a false void? |
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Definition
| They need a sales receipt, at the time of the sale they withhold the customer's receipt. |
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Term
A false void
Aside from shrinkage, a register disbursement scheme leaves the victime organization's books in? |
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Definition
| balance. On the books the sale has been voided, so the money can be removed, without the causing the register to be out of balance. The inventory is overstated, because the item is not returned to stock, instead the customer has removed the item. |
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Term
| What are the 4 types of Register Disbursement Schemes? |
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Definition
1. False Refunds
2. Fictitious Refund
3. Overstated refund scheme
4. False Void |
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Term
| There are basically two basic fraudulent disbursement schemes that take place at the cash register, what are they? |
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Definition
False Refunds and false voids
False Refunds can be of two types,
Fictitious, meaning there is no refund, and overstated in which the refund is given but the fraudster rings up the refund for more money than it should be and keeps the difference. |
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Term
| What are the 3 red flags that signal potential fraud by employees? |
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Definition
1.Personal or financial problems
2. Lifestyle changes or pressures
3. Low morale or feelings of resentment |
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