Cheque, Credit Card and Company Fraud Flashcards
Cheque and Credit Card Fraud
What to find out from Informant
Interview the informant and:
- find out the identity used by the offender
- obtain descriptions of the offender, the property obtained and the vehicle used.
Cheque and Credit Card Fraud
What to find out from Bank
- 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
Cheque and Credit Card Fraud
If an account has been opened with fictitious details, find out:
• 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
Cheque and Credit Card Fraud
When cheques are dishonoured through lack of funds, interview the account holder and find out:
- 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.
Cheque and Credit Card Fraud
What not to do with documents
- 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
Cheque and Credit Card Fraud
When interviewing suspect what should you cover
Explanation for offences to establish whether intent was to obtain or cause loss Find out about suspects -knowledge of state of the account -expectation of funds -overdraft arrangement
Company Fraud
Category A Offending
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.
Company Fraud
Category B Offending
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.
Company Fraud
Category C Offending
Commercial fraud committed against the public by people who, either as individuals or through the guise of a company, entice people to invest money.
Company Fraud
Category D Offending
Dishonesty offences committed by professional people in a position of trust, such as solicitors and accountants, against their clients.
Company Fraud
Sources of Assistance
- Police accountants and legal officers
- Ministry of Business, Innovation and Employment
- Commerce Commission
- Financial Markets Authority
- NZ Customs
- Liquidators and receivers
Company Fraud
Company Liability
A company can be guilty of a criminal offence. When a senior executive of the company commits an offence the company is cvriminally liable.
The actions of the executive are said to be the actions and atet of mind of the company.
The executive is also personally liable for their actions.
The company is the principal offender and the executive is liable as a party.
Criminal actions of junior management or employees such as accountants are not imputed to the company.
Serious Fraud Office Investigations
When must you notify SFO
- 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.
Cheque Value
If the cheque would not have been honoured, for example no money in the account, its value is that of the paper only.
If the cheque could have been promptly and safely converted into money its value is the sum for which it is made out.
Valueless Cheques
If the drawer honestly believes that there will be sufficient funds in the account when the cheque is presented, or that they have an arrangement with the bank for adequate overdraft facilities, there is no intent to defraud and no offence is committed.
The belief does not need to reasonable.
