Monday, February 23, 2009

Reduced cash receipts = reduced cash theft

According to the BDO Not-for-Profit Fraud Surveys cash theft is the most prevelant form of fraud.


Cash is an easier target to defraud than funds that have been deposited into a bank account.

Methods to Mitigate the Risk

Many organisations accept cash donations, membership fees or other income. Cash can easily be taken, is difficult to trace and is therefore a significant risk to fraud. To reduce the risk of cash theft, encourage deposits directly into the organisations bank account as first preference, or otherwise donate or pay by credit card (of course credit card fees will need to be considered).

Of course, controls must then be maintained over the relevant bank accounts to ensure cheque fraud or online payment fraud does not occur.

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