Cheque, Credit Card and Company Fraud

Question 1

Cheque and Credit Card Fraud

What to find out from Informant

Answer 1

Interview the informant and:

• find out the identity used by the offender
• obtain descriptions of the offender, the property obtained and the vehicle used.

Question 2

Cheque and Credit Card Fraud

What to find out from Bank

Answer 2

• the account holder’s full name, occupation, private and business addresses and telephone numbers
• whether the account holder is suspected of issuing valueless cheques.
• the date the account was opened
• the account history and how it has been operated
• the date the cheque book or credit card was reported missing
• how and by whom a loss was reported
• the serial numbers of any missing cheques
• details of any cheques dishonoured and returned

Question 3

Cheque and Credit Card Fraud

If an account has been opened with fictitious details, find out:

Answer 3

• Descriptions of the suspect and any of their associates at the time

• The account number and the date it was opened
• The details used when the account was opened
• The names and addresses of the employee who opened the account and any other employees who can identify the suspect.
• Interview these employees and obtain statements
• The nature and amount of the first deposit
• Details of any other deposits
• Details of the dishonoured cheques and the people or firms defrauded.
• The serial numbers of the cheques supplied

Question 4

Cheque and Credit Card Fraud

When cheques are dishonoured through lack of funds, interview the account holder and find out:

Answer 4

• the suspect’s full name, address, occupation and age
• whether the suspect was aware of the state of the account. If so, find out when and by whom the suspect was informed. Obtain any correspondence asking him or her not to issue any more cheques and confirm that this was not returned to the bank undelivered
• the date the account was opened
• the nature and amount of the first deposit, e.g. cash, tax refund or stolen cheque
• the general pattern of the way the account has been operated
• the state of the account at the time the cheques were issued
• details of the dishonoured cheques and the people or firms defrauded
• details of any overdraft arrangement - check the bank’s diary notes for any extension to this
• any arrangements for regular deposits such as direct crediting of wages, and the dates and amounts of irregular ones
• the amount of any savings in other accounts.

Question 5

Cheque and Credit Card Fraud

What not to do with documents

Answer 5

• punch, fold or crease them
• use staples, pins or sellotape
• make impressions on them when writing minutes on the file.

DO place them in file or clear plastic bag

Question 6

Company Fraud

Category A Offending

Answer 6

Large-scale thefts and other dishonesty offences against employers by employees - usually people such as accountants and managers who use their position to manipulate the company’s financial systems.

Question 7

Company Fraud

Category B Offending

Answer 7

Dishonesty offences committed against financial institutions by people outside the institution obtaining money from it through deception and GST fraud against the Inland Revenue Department by businesses that make false GST returns.

In the latter case, the offender may be:
• an employee who covers misappropriation of money from their employer by obtaining fraudulent GST refunds to ‘replace’ the money the employee has stolen, or
• the operator of the business.

Question 8

Company Fraud

Category C Offending

Answer 8

Commercial fraud committed against the public by people who, either as individuals or through the guise of a company, entice people to invest money.

Question 9

Company Fraud

Category D Offending

Answer 9

Dishonesty offences committed by professional people in a position of trust, such as solicitors and accountants, against their clients.

Question 10

Company Fraud

Sources of Assistance

Answer 10

• Police accountants and legal officers
• Ministry of Business, Innovation and Employment
• Commerce Commission
• Financial Markets Authority
• NZ Customs
• Liquidators and receivers

Question 11

Serious Fraud Office Investigations

When must you notify SFO

Answer 11

• All fraud complaints with an actual or potential loss in excess of $2,000,000
• All fraud complaints where the facts, law or evidence is of great complexity
• Any fraud complaint of great interest or concern; for example, fraud involving a public figure.