WASHINGTON, D.C. – The Consumer Bankers Association (CBA) is proud to recognize the following lawmakers as Fraud Fighters for their important work to combat fraud and scams – helping to protect Americans from criminals and financial hardship. This week, CBA Fraud Committee Chair and EverBank Senior Vice President Patrick McDade will also testify before Congress on how banks and lawmakers can work together to further combat fraudsters and scammers.
“Fraud has surged at an alarming rate, affecting American consumers’ ability to afford necessities and causing further emotional pain,” CBA President and CEO Lindsey Johnson said. “Banks spend billions of dollars and thousands of man hours each year working to protect consumers from fraud and scams. CBA has long called for federal action to protect consumers from fraud and scams, hosting roundtables with policy experts, and publishing…
PAYROLL & HR CONTROLS (PREVENTING “GHOST” SCHEMES)
Payroll fraud is often the hardest to detect because it “looks” like a normal business expense.
- Segregation of Duties (SoD): The person who adds new employees to the system must not be the same person who approves the monthly pay run.
- Mandatory Vacation Policy: Require all financial and HR staff to take 5–10 consecutive days of leave annually. Fraud often surfaces when the perpetrator isn’t there to “hide” the trail.
- Ghost Employee Audit: Perform a quarterly “Headcount Reconciliation” where managers must physically verify every name on their payroll list exists.
- Self-Pay Blocking: Ensure the payroll software has a hard-coded block preventing administrators from editing their own salary or bank details.