Don’t let line-of-credit schemes defraud your client
Abstract: Hard economic times typically lead to more “creative” fraud schemes. One that gets little attention, but potentially is extremely damaging, involves a company’s line of credit (LOC) with lenders. Employees who are closely involved in arranging for LOCs or are calculating periodic receivable availability reports are most likely to commit this complicated type of fraud. But forensic experts have several methods at their disposal to detect complicated LOC schemes.