Andrew Charles Gemberling, a former assistant manager at Country Cupboard Inn Best Western, was charged with making $56,000 worth of fraudulent transactions using a company credit card to buy goods, then return the items for cash. He also admitted to helping himself to approximately $30,000 from the cash register. The scheme went on from August 2016 to December 2020, when the credit card company tipped off his employer to the suspicious transactions.
What is unique about the County Cupboard case? Turns out, not much. According to the Association of Certified Fraud Examiners, on average, fraud schemes last fourteen months and, like Mr. Gemberling, it was uncovered by a tip which is the way it goes 43% of the time.
In the aftermath of a fraud event, many businesses scramble to bolster internal controls and segregate duties to avoid repeat events. That’s a good thing. However, what’s really needed is a long-term commitment to being vigilant about protecting assets.
Security cameras trained on the cash register are only a good deterrent if somebody is reviewing the receipts to assess whether something untoward is occurring. Otherwise, it is unlikely anyone has the time or desire to review hours and hours of the camera footage and a crooked employee probably knows that.
Staying vigilant with effective internal controls that grow and evolve as the business does is one of the best ways to reduce fraud risk. Remember, every company is different and protecting it isn’t a one-size-fits-all proposition.
Contact us to find out how Integrity 1 Solutions can help protect what’s important to you.
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