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  • Writer's pictureJerry Ipsen, CFE, MBA

Fraudulent Business Credit Card Use

Business owners at a minimum should be reviewing bank statements as well as all credit card usage relating to their operation.  A recent example of the importance to do so includes a town’s finance director and another employee who racked up thousands of dollars in what appears to be for (personal) purchases while using credit cards belonging to the town’s governing body.

In fact, one of the employees allegedly spent more than $100,000 over two years on the town’s credit card, a card the mayor said he didn’t even know the Finance Director had.  In less than two years, credit card statements showed purchases of at least $7,500 on DoorDash for meals delivered to her house, nearly $1,700 on wine, $5,600 for a condo in Orange Beach, $26,000 at Amazon, $10,000 at Sam’s Club, $4,600 at Walmart, and another $4,000 at Target. If the town mayor had no clue, I would imagine many business owners across the country are in a similar position.

You don’t have to become a victim of employee theft!  On a monthly or quarterly basis at a minimum, take the time to inspect (or arrange for a third-party audit) of all bank and credit card statements.  Look for abnormal or non-company related purchases such as home deliveries of building materials, even take-out food. In fact, you might find like in the above example multiple online purchases from Amazon or from box stores like Walmart and others. 

Ipsen Due Diligence provides forensic accounting (periodic audits) and fraud investigation services for business owners who suspect embezzlement by employees or vendors. My reports are used for litigation purchases should you decide to file suit against employee(s) or vendors who’ve been stealing from you.

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