Bookkeeper Gets 2 Years For $100,000 Credit Card Fraud

Protect Your Business From Credit Card FraudAn Ex-Indiana bookkeeper was recently sentenced to two years for credit card fraud. You can get the story here. But, we want to discuss what went wrong…

The Bookkeeper’s Credit Card Fraud Case

In this case, it appears that the bookkeeper had full access to the credit card accounts and didn’t have any oversight. This cost the business $100K. The bookkeeper issued new cards to employees without the company’s knowledge and then used the card to pay for a ton of personal expenses.

Lesson for Small Business Owners

The lesson for businesses is to provide some sort of oversight to your bookkeeping function. Ignorance to your numbers or not wanting to deal with it is no longer an excuse. If this business had someone else do the regular bank reconciliations or just reviewing the credit card statements regularly, it would have been much harder for this to happen.

Remember, running a business is a team sport. If you let someone operate just by themselves, that can quickly bring the business to its knees.

If you don’t have anyone internally to provide oversight to your bookkeepers, then consider hiring an outside firm to provide some oversight. In our firm, we do provide a monthly close for our clients that have onsite bookkeepers, so they can sleep better at night.

Cathy Iconis

Cathy Iconis, CPA is the creator and facilitator of the weekly tweetchat #QBOchat and the website QBOchat.com - a community for QuickBooks Online Users.She is also the founder of Iconis Group, an Intuit Top 20 Firm of the Future, that supports small businesses all over the United States with their bookkeeping needs.She is a five-time recipient of the prestigious CPA Practice Advisor 40 Under 40 Award, given annually to just 40 people nationwide.

Leave a Comment





This site uses Akismet to reduce spam. Learn how your comment data is processed.

Cart Item Removed. Undo
  • No products in the cart.