Elimination of Fraud
Fraud Threats
By definition, third-party confirmations are sent to the client’s financial institution, therefore, it is within the identity of the responder that the ultimate exposure to fraud exists.
In case after case, paper-based processes are shown to be easily penetrated by purported fraudsters, especially when the process is so easy to circumvent. Here are just a few of the areas that a fraudster can take advantage of:
4 Fraud Threats - list not inclusive of all threats
- Client provides the account statement and contact information
- Client provides the contact name
- Client directs/influences the auditors validation process
- Impractical if Not Impossible to Validate Signatures
To find out more, contact:
Clark Hudgins, Vice President Accounting Profession
Clark.Hudgins@confirmation.com
Phone: 1-888-716-3577

