North Carolina homeowners association may have fallen victim to fraud

Keeping an organization up and running can be a challenge, and there is no shortage of responsibilities that leaders need to address. Among those duties is making sure to properly manage accounts payable to ensure fraud doesn't begin to take a toll on the entity's ability to function.

According to The Charlottesville Daily Progress, the Albemarle County Police Department in North Carolina is currently investigating instances of missing funds at the Hollymead Citizens Association Board. The source reported that through the use of properly recorded in the board's systems and that some payroll payments were made to different people than reflected on canceled checks.

In an interview with Businessweek, Ken Springer, a former FBI special agent, told the source that in his years of investigating fraud, check tampering had emerged as one of the most prevalent varieties of misappropriation. Springer explained that this is often because "no one's watching the cookie jar," which happens when companies skimp on financial controls in favor of saving money. He said that while some business owners may be hesitant to use audit solutions for budgetary reasons, these technologies put clear checks and balances in place, deterring crime.

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