Are You Concerned About Fraud?  NOVEMBER 2015

How is it that fraud can be committed right in front of business owners even when they are looking daily at their accounting system?

The prevention of Fraud falls under the following headings:

1. Segregation of Duties

2. Approvals and Payments

3. Client Account Write Off’s

4. Travellers Cheques / FX

5. Client Credit Card Charges

Segregation of Duties

This involves the separation of activities that involve the handling, processing and banking of money. Plus the separation of activities that involve the approval, processing and making of payments.

Segregation of duties ensures that one person is not responsible for the whole of a process and therefore is not put into a position of being able to commit fraud.

Approvals and Payments

One person should approve payments to suppliers and another person should make the payments. It may be wise to have two authorized signatories on bank accounts unless the owner / director can sign.

Payroll schedules should be signed off by two authorized signatories and checked to ensure that all payments are to employees.

Client Ledger Write Offs

These are processed as Charges and Credits in Travelog / Trip Adjustments in Crosscheck/ Discounts or Mark Ups in Tramada and could disguise discounted product to staff, family and friends.

These should be reviewed and checked each month and any adjustment over a certain value approved by a manager.

Staff Travel – a company policy should be set for staff, family and friends.

Travellers Cheques

A relatively common method of committing fraud is if staff or brokers are able to order Foreign Currency or Travellers Cheques and charge this to clients.

To avoid any opportunity for this, the purchase of FX should be coordinated through a manager.

Client Credit Card Charges

A fraudulent staff member may charge a clients credit card to hide a payment for fraudulent purposes. It may never be noticed by the client or when noticed they move the charge to another clients card.

Queries from clients regarding their credit cards would come back to the manager.


Have a good insurance policy and check the wording of the policy.

Be aware of any adjustments to client files by consultants or brokers –particularly write offs – check these frequently.

Check complaints from clients about Credit Card mischarges – act quickly to investigate.

A manager / owner should sign off all FX orders.


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TAANZ - Travel Agents Association New Zealand link to website

T. 09 524 6178      F. 09 524 6179     E.