Internet Banking Fraud †Clive Peeters Case

One of the most putting surface forms of employee fraud that we have been seeing for quite some time involves chafe to internet beveling. Businesses often have two signatories for comp either cheques but appropriate full single user access to their internet banking. The result is an chance waiting to happen. An internet banking fraud of $20 million was reported right away in the Sydney Morning Herald involved the payroll private instructor of listed ovalbumin goods retailer, Clive Peeters. Full story http// concern. smh. com. au/business/employee-admits-stealing-20m-20090811-eh02. tml In that case, the payroll manager invested in proceeds of her fraud in real 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 flyspeck or nothing to recover. Other similarities to the cases that we have seen the amount of the fraud is perpetually larger than expected. The approximates of the Clive Peeters fraud went from $2 million to $7 million to $20 million. the fraud was conducted over a longer period than expected. The current estimate is that the fraud was operating for 18 months.It is vitally important 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 internal controls. Speak to your bank about obtaining the higher security, multiple signatory version of internet banking. Unfortunately, in our experience, it is not easy to obtain and you have to speak to many hoi polloi in the bank before you get someone you knows anything about it.