Sodexo food service contractor at the University of Wisconsin-Oshkosh loses $308,709 to fraud.
An employee at Sodexo was able to convince a bank teller to cash checks despite the checks being endorsed as “for deposit only”. This scheme ran for over 5 years and was not discovered until a new employee was hired who found the discrepancies.
Lessons to be learned:
Make sure your bank understands that checks are for deposit only and to report anyone trying to cash company checks or checks from customers.
Accounts need to be reconciled and audited to verify all transactions from invoicing to collection. Bank statements and deposits need to be reconciled to A/R.
Separations of duties with cross checks and balance within the accounting functions.
Watch for “red flags”
Education of employees to fraud prevention and reporting are necessary.
Article reported in the Advance Titan student newspaper, Sept 20, 2018.