What you can learn about fraud prevention from a casino
Many revelers are attracted by the Las Vegas Casinos ranging from the high-rollers, matrimonially inclined to the thrill-seekers. Still, on it, another less desirable guest crops in. The fraudster.
You will find them on the casino room floor sneaking craps bet once the dice have been thrown or cheating at cards. Others will use their tech expertise to trick the slot machines to making frequent payouts. Some of them are employees who steal from the property either on cash registers or some that get commissions from fake sales such as bogus room upgrades.
As Las Vegas brings that attracting appeal to many as opposed to other average businesses, fraud-related problems are also experienced. Casinos are billion-dollar investments and they can allocate resources that can eliminate fraud.
Caesars Palace, for example, has seen fraud prevention efforts done by Matt Mitchell who is Caesar’s Entertainment Corp.’s director of internal audit. He among other counterparts have experienced various fraud scenarios such as standard schemes laid out to distract dealers to other players who tracked results from a roulette station for years to note if one would be led to a dead spot by the wooden wheel’s construction.
Other fraud cases Mitchell has experienced has been on the casino floors and he advises entities that wish to improve or start a fraud prevention and detection program;
- Data analysis: Get a wealth of data from the point-of-sale systems where some of it can offer clues in fraud detection. Those systems that highlight every keystroke at a terminal are also good at detecting fraud patterns. Mitchell says, ‘If I see a cancel check button followed within the next 30 seconds by an open drawer or something like that – that’s not normal.’
- The crucial role of surveillance: Whilst accountants spot red flags in the data relayed, having skilled experts in video surveillance is crucial to back any fraud red flag that might be been spotted by the accountants. The ‘intermarriage’, according to Mitchell, can help pursue prosecution
- Control procedures evaluation: In a service industry mostly, controls play a role in balancing act. With organizations not giving employees access to information such as comp code and with managers not available always to deal with a client quickly, Mitchell advises that businesses should strike a balance between too little and too much access.
- Ensure the fraud prevention personnel possesses integrity, tenacity, and attitude while hiring: Mitchell says that those hired should have a sense of ownership and that they should feel offended if ‘somebody stole from the business’
- Embrace the small starts: Beginning the program may seem a huge task especially when the management doesn’t help you in footing the bill. Every beginning, however, is appreciative and Mitchell encourages you to ‘Get some wins under your belt’