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Senior Contributor
Posts: 4,690
Registered: ‎02-23-2011
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Business check question...

Not sure where to post this, but will just do so here.  

 

Going through some of our books today, and just wanted to make sure about something.  There's no way any indvididual could take one of our corporate checks and deposit it into his or a thrid party personal account, right?  Even if this person has the cooperation of a bank employee, this still wouldn't be possible, right?

Established Contributor
Posts: 937
Registered: ‎07-24-2012
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Re: Business check question...

Not sure if I follow you, I assume you mean a check made out TO the corporation? Highly unlikely. FROM the corporation yes but you would see it as a cleared item. 

Senior Contributor
Posts: 4,690
Registered: ‎02-23-2011
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Re: Business check question...

Just wanted to make sure there was no way anyone could take check payable to "ABC Corp," and deposit into his personal accounts.

Established Contributor
Posts: 937
Registered: ‎07-24-2012
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Re: Business check question...

Never say never but it would take a very large effort by a bank (or check cashing place). You missing a payment? 

Senior Contributor
Posts: 4,690
Registered: ‎02-23-2011
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Re: Business check question...

We were issuing K1s, and something seemed off.  

 

Nothing concrete, just a feeling from looking over numbers the past 10 years, this year's seemed a little strange.  Just wanted to make sure it isn't possible where someone couldn't send out an invoice, receive a corporate check, then cash into a personal account and delete the invoice with the help of someone from IT.

 

 

Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
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Re: Business check question...

With Fraud I would think that anything would be possible. 

 

Best way to do a double check would be to survey the clients whom you think may have been sent bogus invoices.

 

You can call and just run through invoices with them... and if they start naming invoices that aren't in your system then you would find the problem.


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New Contributor
Posts: 132
Registered: ‎11-21-2012
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Re: Business check question...

You can't do this but if a bank allowed it they would also be in trouble.
Senior Contributor
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Registered: ‎02-23-2011
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Re: Business check question...


Project17 wrote:
You can't do this but if a bank allowed it they would also be in trouble.

Yes, but I have to detect and come up with the proof first.  The bank would never disclose what may have happened on their own volition. 

New Contributor
Posts: 132
Registered: ‎11-21-2012
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Re: Business check question...

Yes of course you would. Need proof... Buts its very difficult to almost impossible in most banks. The manager would have to sign off on it which wouldn't happen unless they were in on it and even at that it would get question down the line as the check was processed. The only time you can really cross personal and business accounts are for sole props and single member LLC's.
Senior Contributor
Posts: 4,690
Registered: ‎02-23-2011
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Re: Business check question...


Project17 wrote:
Yes of course you would. Need proof... Buts its very difficult to almost impossible in most banks. The manager would have to sign off on it which wouldn't happen unless they were in on it and even at that it would get question down the line as the check was processed. The only time you can really cross personal and business accounts are for sole props and single member LLC's.

I'm inclined to agree with you on the enormity of the conspiracy necessary to perpetrate this fraud.  

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