Internet Banking Fraud †Clive Peeters Case

superstar of the most common forms of employee fraud that we have been seeing for quite whatever time involves access to cyberspace banking. Businesses often have two signatories for society cheques but every(prenominal)ow full single user access to their earnings banking. The result is an accident waiting to happen. An internet banking fraud of $20 cardinal was reported today in the Sydney Morning Herald involved the payroll department manager of listed white goods retailer, Clive Peeters. Full story http//business. smh. com. au/business/employee-admits-stealing-20m-20090811-eh02. tml In that case, the payroll manager invested in proceeds of her fraud in echt estate and cars, so the company is hoping to recover some or all of their monies. However in most cases that we have seen, the money is spent or gambled and their is very little or nothing to recover. Other similarities to the cases that we have seen the do of the fraud is always larger than expected. The estimates o f the Clive Peeters fraud went from $2 million to $7 million to $20 million. the fraud was conducted over a longer effect than expected. The current estimate is that the fraud was operating for 18 months.It is vitally Copernican where a business is using internet banking that a two signatory approval for any payments or transfers is put in place. The standard internet banking software provided by the banks is inadequate for business use because it lacks the necessary interior controls. Speak to your bank about obtaining the higher security, multiple signatory adaptation of internet banking. Unfortunately, in our experience, it is not easy to obtain and you have to express to many people in the bank before you get somebody you knows anything about it.