• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • File a Report
  • Check Report
  • Client Login

Red Flag Reporting

Protecting Organizations & Their People

  • Home
  • About RFR
    • Our Team and Expertise
    • Who Do We Help?
    • Published Articles
  • Services
    • Hotline Service
    • Compliance Services
  • Benefits
    • Protect Employees
    • Protect Your Reputation
    • Protect Your Bottom Line
    • Manage Cases with Ease
  • Blog
  • Get Started
    • FAQ
    • Request a Demo or Quote
  • Contact Us

December 1, 2021

Beware! Fraudulent Manipulation of Electronic Bank Statements

Share on LinkedIn Share
Share on Facebook Share
Share on TwitterTweet

One way that fraudsters cover up their behavior is by manipulating electronic bank statements. Unfortunately, the process of editing electronic statements is fairly simple and does not require suspicious software. The Association of Certified Fraud Examiners (ACFE) Insights article, “Fraudulent Manipulation of Bank statements in Electronic Format,” by Peter Davis and Sara Beretta provides useful information on this topic. The following is a summary of their findings and recommendations.

Electronic statements are typically downloaded in PDF format. Fraudsters with access to these statements may employ a number of strategies to edit them. PDFs can be altered with software that allows individuals to convert them into an alternate format, make edits, and revert them to PDF format. Some software allows for changes to be made without converting files or allows for duplication and editing of images using screen capture. While it is impossible to fully eliminate the risk of fraudulent manipulation, the article describes multiple ways to make PDFs more secure. Password protected security features can be applied to PDFs to prevent manipulation, however, most banks do not use these features on electronic statements. Additionally, the article states, “The most secure PDF files can restrict users from changing a document, combining multiple files, extracting pages, copying text and even printing the files.” It explains that while preventing account personnel from printing statements may seem impractical, fraudsters avoid security features on PDFs by simply printing and scanning them to create unprotected versions. Once again, this security feature is rarely used, so it is important to combat fraudulent manipulation of electronic statements through other means.

The authors warn examiners to be cautious when relying on statements in PDF format that do not come directly from the financial institution because fraudulent changes are nearly impossible to detect. They recommend watching out for slight differences in font types and sizes, statements that appear to have been scanned but have been converted to text format, excessive bank fees that may be due to overdraws that have been covered up, and discrepancies between ending balances of prior statements and beginning balances of subsequent statements, as these are all warning signs of manipulation. To conclude, as electronic banking and paperless statements become the norm, it is important to stay vigilant of fraudsters who will try to use this system to their advantage.

Want to learn more about preventing fraud?  Check out our article here.

Learn more about empowering your employees to speak-up through and independent hotline here.

Share on LinkedIn Share
Share on Facebook Share
Share on TwitterTweet

Filed Under: Uncategorized

We are Red Flag Reporting

We offer ethics, safety and fraud hotline / case management solutions to our clients via the web, over the phone and through other methods. Trusted by organizations large and small in 50 countries, we can help you!

We are an Ethics Hotline Service Provider
Find Out More  Get a Quote

Primary Sidebar

Hotline and Web Portal

We are an Ethics Hotline Service Provider

Get a Quote

We offer ethics, safety and fraud hotline / case management solutions to our clients via the web, over the phone and through other methods. Trusted by organizations large and small in 50 countries, we can help you!

EEOC Recommendations for Bias-Free Use of Decision-Making Technology in Hiring

The Equal Employment Opportunity Commission (EEOC) …

[Read Article...] about EEOC Recommendations for Bias-Free Use of Decision-Making Technology in Hiring

Cal/OSHA Initiative Paves the Way for Workplace Violence Prevention

Workplace violence is gaining more attention in …

[Read Article...] about Cal/OSHA Initiative Paves the Way for Workplace Violence Prevention

Preventing Fraud Through Careful Hiring Practices

While no organization is fully immune to fraud and …

[Read Article...] about Preventing Fraud Through Careful Hiring Practices

Footer

Follow Along

  • Facebook
  • LinkedIn
  • Twitter

Red Flag Reporting

Red Flag Reporting provides compliance and ethics hotline services and case management software solutions to organizations seeking to promote safe and ethical behavior.

Reach Us

Red Flag Reporting
P.O. Box 4230, Akron, Ohio 44321
Contact Us

(Sales Office only – not a reporting line)
Tel: 877-676-6551
Fax: 330-572-8146

NOTE: Red Flag Reporting services are available for purchase by organizations only. We do not sell or provide our services to individual people.

  

 

Copyright © 2022 Red Flag Reporting all rights reserved. All other trademarks and copyrights are the property of their respective holders.

  • Red Flag Reporting – Ethics, Fraud and Whistleblower Hotline Service
  • Contact Us
  • Privacy Policy