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Fraud Prevention Alert—Nonpayroll Disbursement Frauds


According to the Association of Certified Fraud Examiners, Inc., nonpayroll disbursement frauds related to billing schemes, check tampering, false expense reimbursements, and illicit register disbursements account for 62 percent of occupational fraud schemes in the United States and Canada. Similarly, during the last 5 years we have identified public money losses in Arizona governments totaling over $4 million due to these types of disbursement fraud schemes. The longer a fraud remains undetected, the greater the financial losses. This alert outlines how certain Arizona disbursement frauds occurred and what actions management can take to deter and detect them.