Date: June 2, 2016

Low Tech Fraud in a High Tech World: Embezzlement and Check Fraud (I)

Session Description

With management attention focused on high tech fraud such as cyber-crime, organizations often forget that major losses are caused by “low tech” embezzlement schemes.  In a recent national study, companies with fewer than 500 employees had average embezzlement losses of $807,443, with median losses of $294,354. Some companies have gone out of business due to these losses. Those that do survive often experience layoffs, cutbacks and salary freezes. The victims are not only the organizations themselves, but their suppliers, vendors, and families. 


Embezzlement is almost entirely preventable with “low tech” controls and protocols. Attendees will learn the “red flags” and motivations of embezzlement, and specific strategies for avoiding it. 


Meanwhile, "old-school" check fraud is often intertwined with embezzlement, and still causes more losses than all other forms of payment fraud. Check fraud is on the rise after many years of slow decline, and mobile Remote Deposit Capture (mRDC) has only added to its complexity. Attendees will learn how the Check 21 Warranties combine with Holder In Due Course to give recourse to banks and consumers seeking to recoup mRDC losses. 


The presenters will share real-life fraud situations, including what went wrong and how the losses could have been prevented.



Speaker Information

Greg Litster is president and founder of SAFEChecks, and is editor of Frank Abagnale’s Fraud Bulletin.


Greg is a former banker of 18 years, has written articles published in AFP Exchange, American Payroll Association, American Land Title Association, and Sheshunoff’s Corporate Cash Management  Manual.  He has served as an expert witness on several national and international check fraud and embezzlement cases, and has spoken on fraud prevention across the country for numerous financial institutions and professional organizations, including AFP, GFOA, TEXPO, SoCal Expo.

Greg earned a Bachelor of Science in Economics and an MBA in Finance, both from Brigham Young University.