Detecting and Preventing Employee Fraud: Audits and Methods

Event ID:72358

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On-Demand (OD)     $299.00
Duration: 90 minutes, including question and answer period.
Presenter(s): Gary Deutsch, CPA, president, BRT Publications, LLC
$299.00, On-Demand includes full audio presentation, question and answer session, and presentation slides.
Credits: Live webinar approved for 1.5 NASBA credit hours (Management Services)
Who Should Attend? Internal auditors, security personnel, financial officers, fraud control personnel, risk managers, loan review, loan administration, operations managers, audit committee members

Recent headlines shout: “Manager Steals $600,000,” “CFO Confesses to $20 Million Embezzlement.” Can’t happen to your institution? Think again. These incidents can happen to any institution and in many jobs within the bank or credit union. Is your institution prepared to detect fraud early to minimize losses? Are controls in place to prevent fraud? Will your preparations satisfy the regulators?

Although coverage is rare, few institutions want publicity on this, employee fraud does happen in financial institutions and regulatory expectations are that you keep a close eye on this potential vulnerability. Cases range from theft of cash in branches to senior officials falsifying documents. No area is immune. The largest losses occur in lending, but deposit operations is a frequent target as well. Sometimes bank employees conspire to alter accounting records to save a failing institution or conceal their errors. Worst of all, frauds often go undetected for years. When they are finally discovered, losses have already grown to material amounts of money. Some institutions have even had to close their doors.

The FDIC virtually mandates two weeks of consecutive vacation for active employees and officers to facilitate employee fraud prevention. Regulators are serious about detecting any potential employee fraud, and you need to be as well. After the fact, the question often arises: “How could this fraud go on for so long and cost the institution so much money?” Invariably, the answer is that internal controls were not followed and management let control weaknesses slide because there was more pressing business to attend to.

In today’s environment, a large fraud loss could be devastating and the cost to you beyond direct financial loss could be even more incapacitating. Increased regulatory scrutiny, the time and focus costs in dealing with the aftermath, and the potential for adverse publicity can significantly damage your institution.

To help your institution detect fraud early or even avoid it, please join Gary Deutsch as he provides hands on guidance and examples on how to improve fraud controls and establish and maintain an effective fraud audit program at your institution.


These crucial issues will be discussed:

  • Examples of frauds committed
  • Why opportunities to commit fraud exist
  • Methods for assessing fraud risks
  • Setting a zero tolerance tone
  • Control weaknesses and cost-effective solutions
  • Establishing an antifraud team
  • Dealing with fraud once discovered


Your conference leader for "Detecting and Preventing Employee Fraud: Audits and Methods” is Gary Deutsch, president, BRT Publications LLC. Mr. Deutsch is a licensed CPA in Maryland and has a B.A. in accounting and an MBA in finance from Loyola University Maryland. He has also achieved the Certified Management Accountant, Certified Internal Auditor and Certified Bank Auditor designations. Mr. Deutsch is the founder and president of BRT Publications LLC.

Mr. Deutsch has trained thousands of financial institution professionals in all aspects of risk management and has written numerous books in the U.S. and Europe on topics such as credit risk, internal audit and compliance with Generally Accepted Accounting Principles. Mr. Deutsch has extensive risk management and internal audit experience through his association with financial institutions of all sizes as well as through his role leading the KPMG financial institution consulting practice in the Mid-Atlantic region. QUALITY COMMITMENT

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