Invoice Fraud Schemes seem like a hocus-focus agenda. The involved person has the intent to gain by stealing money from a company or business. The person doing this might get used to it and was never caught. But time comes that his fraudulent act will end through bad karma. The reason for others is to avoid declaring the right amount to skip the Bureau of Internal Revenue during tax paying. I personally experienced this, someone purchased kitchen cabinets and kitchen wares and then he instructed the cashier to use carbon paper and add up the amount in the invoice instead of the actual price, it was made double. The cashier was reluctant but she has no choice but to issue the receipt manually. I was watching them while window shopping for something. I learned that person was the personnel officer in a big establishment. So, he gave only a little change to the establishment, and the big one was kept in his pocket.
This type of fraud happens when an accountant creates fake invoices to steal money from the business. This act also jailed a politician because he has ghost employees almost 35 people and the payroll prepared by the accountant includes those ghosts. The accountant thought those workers are situated in the extension office, but there was none after the city government discovered the politician's fraud. All in all, the amount intended for the ghost's salary reached 2.8 million in two years' time. But the politician, a Mayor of a certain city is now in jail. Many wondered why the Mayor did that fraudulent scheme. It was learned by the national government that those 35 persons never exist.
How to avoid it in business? Cross-check every invoice with actual goods and services purchased. Do comprehensive background checks or conduct a personal interview to those purchasing stores.
This type of fraud happens when an accountant creates fake invoices to steal money from the business. This act also jailed a politician because he has ghost employees almost 35 people and the payroll prepared by the accountant includes those ghosts. The accountant thought those workers are situated in the extension office, but there was none after the city government discovered the politician's fraud. All in all, the amount intended for the ghost's salary reached 2.8 million in two years' time. But the politician, a Mayor of a certain city is now in jail. Many wondered why the Mayor did that fraudulent scheme. It was learned by the national government that those 35 persons never exist.
How to avoid it in business? Cross-check every invoice with actual goods and services purchased. Do comprehensive background checks or conduct a personal interview to those purchasing stores.
