2014-10-31 HKLPA President recalls cases of fraud investigation

In a brief interview with the Webmaster, HKLPA President Dickie CHAU first recalls an investigation case which happened the time he was with a retail chain giant as a security head in the early 00s.

In those days, the enterprise adopted a simple process to refund customers for over-payment or returned goods, in which the financial manager alone issued instructions to its banker.  An accounting clerk carried out the process, but forged the authorized signature for payment to his parents, his sister and a personal friend.  This prolonged for five years in the amount of two millions Hong Kong dollars.  How was it detected?

It was not uncovered until one day Dickie smelled the luxury cologne of a in-fashioned young man during a routine visit to the financial department.   Transactions reviewed afterwards, the enterprise caught the young man red-handed and brought him to the Police.  Refund was consequently unable to be authorized without a counter-signatory.

The second case was in the early 10s while Dickie worked as a loss prevention head for another retail chain enterprise.  He received a shop manager's complaint about the more than frequent redemption of bonus points by the same customer.  Investigation evidenced that a clerk had been manipulating to remove residual bonus points from other accounts of other customers to her husband's over a period  two years worth of twenty thousands Hong Kong dollars.  She was then prosecuted.

There are always vulnerable areas that may not be surfaced unless a loss prevention officer manages to dig into them, Dickie warned.

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