Unit 10 - Fraud Analysis / Cheques

mfernott

Hi All

I'm basing my project on the purchase ledger system and a key area of fraud I have found is that most suppliers are paid by cheque. Obviously cheque is an antiquated method of payment and cheques are open to fraud.

Does anyone have any information about the types and rates of cheque fraud or any other useful information regarding cheque fraud?

Kind regards
Martin

speegs

As for fraud rates I could not say for recent times but in 2005 it is estimated the cheque fraud amounted to losses of £40.3m. Types of fraud would include theft/missappropriation of cheques, cheques being amended, the use of counterfeit cheques, etc. There are probably more I just can't think of what they are at the moment.

mfernott

Thanks Speegs! :thumbup1:

peugeot

There is an article here:

http://www.accountingtechnician.co.uk/atonline/archive/display/store690/item47408/

which I wrote last year. It considers the auditor's responsibility in terms of fraud. It doesn't specifically relate to cheque fraud but it does highlight some weaknesses which can be present and can give rise to fraud.

Hope it helps you.

Kind regards
Steve

AatAbi

mfernott wrote: »

Hi All

I'm basing my project on the purchase ledger system and a key area of fraud I have found is that most suppliers are paid by cheque. Obviously cheque is an antiquated method of payment and cheques are open to fraud.

Does anyone have any information about the types and rates of cheque fraud or any other useful information regarding cheque fraud?

Kind regards
Martin

Sorry, I don't have any info regarding cheque, I thought you wanted general info

AatAbi

I found this document on the web, looks fine,
http://www.bankingcode.org.uk/pdfdocs/Cheques%20and%20Cheque%20Clearing%20the%20Facts%20Sep%2005.pdf

richardw

facts & figures from apacs:
http://www.apacs.org.uk/payments_industry/payment_fraud_2.html

There are 2 types of cheque fraud in this situation, internal & external