Chase’s ineffective fraud controls
This is truly amazing. Over the course of seven years, a Chase credit card customers personal assistant embezzled over $1 million by taking $200 to $700 cash advances from the creidt card, usually twice a day for the ENTIRE 7 year period. Shame on the card owner for not checking his account once in that seven year period, but what kind of fraud controls does Chase have exactly that won’t catch fraud THAT obvious.
Ineptitude | admin April 2, 2010
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By coakl, January 11, 2011 @ 10:23 am
The fraud is not that obvious. If you do it in small amounts over a long period of time, and no one checks on it, its quite easy to get away scot-free.
The business owner violated the most basic cash control rule of all: those who have the means to spend or receive money, must not be the ones that also balance the books. If you’re too cheap to hire an accountant to do this, then you, the owner, must do it yourself.
By admin, January 11, 2011 @ 10:40 am
Twice a day cash advances HAS to be considered an unusual event, especially for one credit card. Yes, the owner is at fault as well, but surely a reasonable bank would have demanded to talk to the card owner about it.