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Embezzlement and fraud schemes

Each fraud scheme leaves a different trail in the bank statements and the books. This category explains the schemes one at a time: check kiting, lapping, skimming and cash larceny, ghost vendors and ghost employees, check tampering and washing, expense and card abuse, payment diversion by email, and theft hidden inside the bank reconciliation itself. It also covers the settings where embezzlement is common. Start with Signs of Embezzlement in a Small Business, then read the scheme that matches what you see.

  1. What to Do If You Suspect Embezzlement at Work

    What to do if you suspect embezzlement: secure access and records, avoid confronting too early, review bank statements and call counsel and insurers.

    Published October 17, 2026embezzlementfirst stepsowners

  2. Vendor Kickbacks: Signs in Purchasing and Payments

    Vendor kickbacks signs: rising prices from one supplier, steered contracts and lifestyle changes, and what payment data can and can't show.

    Published October 17, 2026kickbackspurchasingvendor fraud

  3. Split Purchases to Avoid Approval: How to Find Them

    How to find split purchases made to avoid approval limits: same vendor, same day, amounts just under the threshold, and when a split is legitimate.

    Published October 17, 2026split purchasesapproval limitsprocurement

  4. Skimming Fraud: Cash Taken Before It Is Recorded

    How skimming fraud takes cash before it reaches the books, why the bank reconciliation still balances and the sales-to-deposit tests that find it.

    Published October 17, 2026skimmingcash receiptssales testing

  5. Signs of Embezzlement in a Small Business

    Signs of embezzlement in a small business: behavior, records and bank activity that point to theft, and which warning signs are often harmless.

    Published October 17, 2026embezzlementwarning signsowner review

  6. Petty Cash Fraud: Small Thefts That Add Up

    Petty cash fraud schemes: altered receipts, reused vouchers, borrowed cash and inflated replenishments, and how surprise counts and reviews catch them.

    Published October 17, 2026petty cashcash countsvouchers

  7. Personal Expenses Through Business Account: Find Them

    How to find personal expenses run through a business account: merchant types, timing, round transfers and how to separate perks from theft.

    Published October 17, 2026personal expensesbusiness cardscommingling

  8. Payroll Tax Embezzlement: Withheld but Never Paid

    How payroll tax embezzlement works when withheld taxes are never paid, why it surfaces late through notices, and how to check tax debits in the bank.

    Published October 17, 2026payroll taxembezzlementtax deposits

  9. Nonprofit Embezzlement: Schemes and Warning Signs

    Nonprofit embezzlement schemes: diverted donations, fake vendors, personal card use and grant misuse, with the warning signs boards often miss.

    Published October 17, 2026nonprofitsembezzlementboard oversight

  10. Mobile Deposit Fraud: Checks Deposited Twice

    How mobile deposit fraud works when the same check is deposited twice or a fake check is scanned, and how it shows up as a returned deposit.

    Published October 17, 2026mobile depositreturned itemscheck fraud

  11. Lapping Fraud: Spotting Delayed Customer Payments

    How lapping fraud hides stolen receipts by applying later payments to older invoices, and the deposit and remittance tests that expose the pattern.

    Published October 17, 2026lappingaccounts receivablecash receipts

  12. How Embezzlement Is Discovered, Usually by Accident

    How embezzlement is discovered in practice: tips, absences, vendor calls and bank notices, and why reconciliations reviewed by the owner find it sooner.

    Published October 17, 2026embezzlementfraud detectionowner review

  13. Ghost Vendor Fraud: Signs in the Vendor File and Bank

    Ghost vendor fraud signs: vendor addresses matching employees, round invoices, missing tax IDs and payments landing in personal bank accounts.

    Published October 17, 2026ghost vendorsaccounts payablevendor master file

  14. Ghost Employee Fraud in Payroll Bank Debits

    How ghost employee fraud shows in payroll: shared bank accounts, no tax withholding changes, no time off and pay continuing after termination.

    Published October 17, 2026payrollghost employeesfraud schemes

  15. Fraudulent Refunds at the Register and Online

    How fraudulent refunds are issued at the register and online, refunds to an employee's own card, and the reports and bank data that reveal them.

    Published October 17, 2026refund fraudpoint of saleretail

  16. Expense Reimbursement Fraud: Four Common Schemes

    Expense reimbursement fraud schemes: mischaracterized, overstated, fictitious and duplicate expenses, and the tests that catch them in payments.

    Published October 17, 2026expense claimsreimbursementfraud schemes

  17. Employee Credit Card Misuse: Patterns and Proof

    Employee credit card misuse patterns: personal merchants, split charges, weekend use and missing receipts, and how to build proof from card statements.

    Published October 17, 2026corporate cardscard misuseexpense fraud

  18. Elder Financial Abuse: Patterns in Bank Statements

    Elder financial abuse patterns in bank statements: new payees, cash withdrawals, changed addresses and transfers to caregivers, and how to respond.

    Published October 17, 2026elder exploitationfamily financescaregivers

  19. Duplicate Payment Fraud: When Repeats Are Deliberate

    How duplicate payment fraud works when an insider pays an invoice twice and diverts the refund, and the tests that separate it from honest duplicates.

    Published October 17, 2026duplicate paymentsaccounts payablerefunds

  20. Direct Deposit Fraud: Payroll Diverted by Email

    How direct deposit fraud diverts paychecks through fake change requests, how it shows in the payroll register and bank, and the checks that stop it.

    Published October 17, 2026payrolldirect depositchange requests

  21. Church Embezzlement: How It Happens and Is Found

    How church embezzlement happens through offerings, credit cards and payroll, why trust makes it easy, and how a review of bank statements finds it.

    Published October 17, 2026churchesembezzlementofferings

  22. Check Washing: How Mailed Checks Get Rewritten

    How check washing rewrites stolen mailed checks, how it appears on the statement and reconciliation, and the controls that cut the risk.

    Published October 17, 2026check washingmail theftcheck fraud

  23. Check Tampering: Forged, Altered and Concealed Checks

    Check tampering schemes: forged makers, altered payees, concealed checks and authorized-maker fraud, with the check image tests that reveal each.

    Published October 17, 2026check frauddisbursementscheck images

  24. Check Kiting: How It Shows in Bank Statements

    How check kiting works and how it shows in bank statements: circular transfers, rising float, the interbank schedule test and what banks look for.

    Published October 17, 2026check kitingfloatinterbank transfers

  25. Cash Larceny: Theft After Cash Is Recorded

    How cash larceny differs from skimming, why it leaves a gap between recorded receipts and the bank deposit, and how reconciliations expose it.

    Published October 17, 2026cash larcenydepositscash receipts

  26. Business Email Compromise Payment Fraud Explained

    How business email compromise payment fraud redirects real payments, what the emails look like and what to do in the first hours after a wire goes out.

    Published October 17, 2026BECwire fraudvendor payments

  27. Bookkeeper Embezzlement: How Trusted Staff Steal

    How bookkeeper embezzlement usually happens: extra pay, personal bills paid from the account, altered records, and how the owner can check quietly.

    Published October 17, 2026embezzlementbookkeeperssmall business

  28. Bank Reconciliation Fraud: How Theft Hides in the Rec

    How bank reconciliation fraud hides theft: fake reconciling items, altered statements and plugs, and how a reviewer re-performs the rec to find them.

    Published October 17, 2026bank reconciliationconcealmentreview

  29. Accounts Receivable Write Off Fraud and Concealment

    How accounts receivable write off fraud conceals stolen payments, which write-offs deserve a second look and how to confirm balances with customers.

    Published October 17, 2026accounts receivablewrite-offsconcealment

  30. Accounts Payable Fraud: Schemes and Detection Tests

    Accounts payable fraud schemes from fake vendors to altered bank details, and the detection tests on vendor files and bank payments that find them.

    Published October 17, 2026accounts payablevendor masterpayment fraud