Beware of online banking fraud
Many businesses are at risk of internal fraud if they do not manage their online banking facilities properly, according to forensic accounting firm Dolman Bateman.

“In many organisations net banking has significantly increased the potential for workplace fraud, and is often more risky than the old-fashioned process of writing a cheque,” says Warwick Dolman, Managing Partner at Dolman Bateman.

“Traditionally, organisations limit the number of people with the authority to sign cheques to one or two senior staff members, or signatories, but with the advent of internet banking we are seeing far more people, including junior accounts staff, gaining access to large volumes of funds, thereby dramatically increasing the risk of someone committing fraud.

“I was recently consulting a major corporation in the building and construction sector which had provided its bookkeeper with sole access to the company accounts, giving her total access to the company’s large volume of funds and control of the online banking password, which possibly posed a huge risk to the company.

“This is a prime example of the risk that organisations are exposing themselves to with online banking and we have since worked with this company to totally overhaul their online banking protocols.

“Online banking does have a number of benefits so organisations should ensure that they have the right procedures and systems in place to limit the chances of a fraudster misappropriating finances.

“Firstly, companies should ensure that any staff member who needs to view account information or have limited access can do so without having the authority to transfer funds. This is called value and non-value access and you can also limit the amount of funds each member of staff has access to.

“It is imperative that each user has a separate log-on and password. This is often not the case, particularly in small and medium enterprises where only one logon and password is assigned.

“For larger organisations we would also highly recommend that two signatories be required to transfer funds, with two separate ID and passwords, in the same way that a cheque will often require two signatures.

“These procedures should be clearly set out in a formal document or policy which all staff must sign and adhere to.

“If companies are unsure about how to minimise the potential for fraud resulting from their banking systems, or if they suspect that fraud is taking place, then they should seek expert advice. The fact is that many companies are unaware of the risk,” says Warwick Dolman.

Dolman Bateman specialises in the detection, investigation and minimisation of fraud in the workplace. Warwick Dolman is a founder and Managing Partner of Dolman Bateman, and is both a Chartered Accountant (CA) and Certified Practicing Accountant (CPA).

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Released for Dolman Bateman by Dennis Rutzou Public Relations.
For further information contact David Lizzio or
Kristen Mackie on (02) 9413 4244.