Is your business inadvertently paying a shell company? - Crawford Ellenbogen

Shell companies exist only on paper, but they may be used to hold other companies’ assets and for other legitimate purposes. That said, some unscrupulous employees who perpetrate billing fraud use shell companies. Fortunately, most of these perpetrators leave a paper trail of invoices. These may arrive more than once a month, show increased purchases over time and use a P.O. box as a return address. Performing credit checks on vendors, requiring employees to take vacations and enforcing a strict separation of duties can help prevent such fraud. Contact us for help strengthening internal controls.