Banish Internal Fraud from your Office

With the advances that technology provides, unfortunately with it comes the possibility of online fraud. Online trust account fraud can occur both by someone outside of the organisation without access to the trust account, and internally. As much as we would like to think this will never happen, the reality is that it does. We have previously covered some examples of internal trust account fraud and another on our own experience of false trust account fraud accusations. Both not a good place to be in!

So that’s the bad news.

The good news is that it can be prevented.

Many cases of internal fraud occur when a licensee fails to implement checks and balances. We recommend internal spot checks to ensure the right processes are in place. It is also important to establish a process for updating owners bank details.

How to Prevent Internal Fraud

Cloud technology continues to make our lives easier! It has some inbuilt features that can assist with the prevention of online fraud.

Here’s how.

  1. Email alerts

    Admin user receives an email when sensitive changes are made to an account. Therefore no sneaky changes can be made and go unnoticed. Going one step further, Admin also gets email if a Property Manager tries to log on from a different IP address.

  2. Date & time stamps in audit logs

    Any change of bank details is recorded in the log or information audit report. This is then date and time stamped and shows the users details that made the changes. Immediate accountability.

  3. Activity logs

    Any new supplier entered into the software is recorded in the activity log. Changes to bank details are also logged in the activity report.

  4. Different levels of user controls

    Certain parts of the software can be made unavailable to certain users depending on the level of access granted. This prohibits users without the necessary rights to access information and data.

  5. Two factor authentication

    Two factor authentication means users cannot access information without a code from their phone. Implementing a dedicated work phone means the authentication stays on the company phone.

Whilst we have the highest hopes our staff will never engage in online fraud, it is better to be safe than sorry.

Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 23 years industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.