Fraud In Houses Of Worship

Houses of worship are particularly vulnerable to fraud, but most feel they are impervious. The authors provide reasons why churches feel so bulletproof and seven practical steps fraud examiners can use to help churches stop fraud in its tracks.

An accounting professor who teaches a fraud investigation class recently told a story about a student in her class who approached her for help on a personal project. The student's church had asked the student to attempt to determine the dollar amount of damages in a recent embezzlement. The perpetrator, a former church secretary, had been defrauding the 200-member church for 18 months by writing herself duplicate paychecks, stealing cash from donation deposits and taking out credit card accounts in the church name, among other schemes.