Cash is one of the most important assets on a corporate balance sheet. Accordingly, companies should implement a system of controls that protects cash from a multitude of threats. Cash-related fraud is not industry specific and there are numerous frauds that occur with regularity across organizations of all types, from Fortune 500 companies to small non-profits. Some examples are as follows:

• Skimming occurs when cash is stolen before the company records it. Retail organizations are often victimized by this type of fraud. An employee “pockets” the payment and then fails to record (or under-records) the sale.
• Billing fraud occurs when an employee submits invoices for fictitious goods, services, or other personal purchases or simply inflates the quantities of purchased goods. The funds for the repayment of these invoices are directed to the employee, or to a party working in conjunction with the employee to commit the fraud.
• Check tampering occurs when an employee steals cash by forging or altering a check drawn on the company’s bank account.
• Expense reimbursement is also an area where an employee can misappropriate cash. The fraud occurs when an employee makes a claim for fictitious or inflated business expenses.