The Top Three Reasons Fraud Happens at Church

And what you can do to prevent it

Embezzlement in churches is on the rise. Regardless of a church's size, three factors can make it more vulnerable to fraud.

1. Lack of segregation of duties. Churches often fall victim to embezzlement when they rely on one person to handle too many tasks related to handling the cash. For instance, even if Jane, the church bookkeeper, is able to sign checks, if she also has access to the check stock and the general ledger, she is in a prime position to steal money from the church. Her duties are not sufficiently segregated. A better practice would be to have Bill, the treasurer, sign the checks. By dividing the duties, there's a greater degree of accountability and oversight.

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