Fraudulent Disbursement
Definition
A scheme in which the perpetrator manipulates the organisation's outbound payment process to divert money to themselves or an accomplice. The main sub-types are billing schemes, payroll fraud, expense reimbursement fraud, and register disbursements.
Related terms
- Cash Larceny
- Taking cash that has already been recorded in the accounting system. The record exists, so the theft creates a provable discrepancy between...
- Ghost Employee
- A fictitious or terminated worker whose record remains active on the payroll master file. Wages are disbursed under that record and diverted...
- Lapping
- A scheme to conceal the theft of cash from customer receipts by applying a later customer's payment to the earlier customer's account....
- Segregation of Duties
- The principle that the authorisation, custody, and recording of any transaction should be performed by different people. Its absence is the single...
- Skimming
- An off-book cash theft: revenue is stolen before it enters the accounting system, so no entry is ever made. Skimming is harder...
Explained in
- Asset Misappropriation and SkimmingA scheme in which the perpetrator manipulates the organisation's outbound payment process to divert money to themselves or an accomplice. The main sub-types ar...