cage investigations
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Cage Investigations. Steve Allensworth. Cage Investigations. A frontline casino cashier is responsible for several thousand dollars during their shift. They will handle many transactions involving cash, checks, chips and on occasion make errors… And on occasion steal!. Cage Investigations. - PowerPoint PPT PresentationTRANSCRIPT
Cage InvestigationsCage InvestigationsCage InvestigationsCage Investigations
Steve Allensworth
Cage InvestigationsCage Investigations
A frontline casino cashier is responsible for A frontline casino cashier is responsible for several thousand dollars during their shift.several thousand dollars during their shift.
They will handle many transactions involving They will handle many transactions involving cash, checks, chips and on occasion make cash, checks, chips and on occasion make errors…errors…
And on occasion steal! And on occasion steal!
Cage InvestigationsCage Investigations
A 2002, Association of Certified Fraud A 2002, Association of Certified Fraud Examiners nation wide study indicated that on Examiners nation wide study indicated that on average cashiers were short more than $5.00 average cashiers were short more than $5.00 per day, per cashier...!per day, per cashier...!
*This study was based on all cash handling positions and not focused on casino *This study was based on all cash handling positions and not focused on casino only data.only data.
www.acfe.com
Cage InvestigationsCage Investigations
Shortages between $100.00 and $500.00 Shortages between $100.00 and $500.00 have historically been found to be;have historically been found to be;
a) Overpays on chips or checksa) Overpays on chips or checks
b) Bad fills or creditsb) Bad fills or credits
c) Paperwork (accounting) errorsc) Paperwork (accounting) errors
Cage InvestigationsCage Investigations
Identify and isolate the areaIdentify and isolate the area
a) Cage frontline windowa) Cage frontline window
b) Vault windowb) Vault window
c) Cage main bankc) Cage main bank
Frontline window investigation:Frontline window investigation:
Obtain the paperwork from the window in question.Obtain the paperwork from the window in question.
a) Cage count sheet (in) (or previous shift “out”)a) Cage count sheet (in) (or previous shift “out”)
b) Cage count sheet (out)b) Cage count sheet (out)
c) Junk sale sheet (“cage even transfer form”)c) Junk sale sheet (“cage even transfer form”)
d) Adding machine tapes from checksd) Adding machine tapes from checks
e) Transaction report for the drawer time frame.e) Transaction report for the drawer time frame.
Performing the investigationPerforming the investigation
Once items “a” through “e” are obtained from Once items “a” through “e” are obtained from cage personnel, you are ready to begin the cage personnel, you are ready to begin the investigation.investigation.
Real time video review of each transaction can Real time video review of each transaction can be time consuming and lengthy.be time consuming and lengthy.
Having a second person review transactions Having a second person review transactions when the error or theft is not discovered or when the error or theft is not discovered or obvious is highly recommended.obvious is highly recommended.
Investigative toolsInvestigative tools
Keep in mind that the cashier is Keep in mind that the cashier is performing a blind count under performing a blind count under normalnormal circumstances, so they will be trying to be circumstances, so they will be trying to be as accurate as possible.as accurate as possible.
Investigative toolsInvestigative tools
Note any changes or scratch-through on Note any changes or scratch-through on the count, in the strapped currency column the count, in the strapped currency column and watch the cashier’s behavior if they and watch the cashier’s behavior if they return to the bulk drawer in the event of an return to the bulk drawer in the event of an unsuccessful first count, as both could be unsuccessful first count, as both could be significant.significant.
Watch the process!Watch the process!
Investigative toolsInvestigative tools
Note if the cashier is counting down their cash Note if the cashier is counting down their cash drawer at irregular intervals that are not related drawer at irregular intervals that are not related to, end of shift or other required counts.to, end of shift or other required counts.
This could mean that the cashier has reason to This could mean that the cashier has reason to believe that they have, shorted a customer, believe that they have, shorted a customer, shorted the cash drawer by overpaying a shorted the cash drawer by overpaying a transaction or attempting to steal from the cash transaction or attempting to steal from the cash drawer. drawer.
Investigative toolsInvestigative tools
Be alert to the tip offs / Be alert to the tip offs / REDRED flags. flags.
Does the cashier leave their drawer open Does the cashier leave their drawer open when they are not performing a when they are not performing a transaction?transaction?
Does the cashier have personal items at Does the cashier have personal items at their station?their station?
Investigative toolsInvestigative tools
Is the cashier going to their body or clothing Is the cashier going to their body or clothing without clearing their hands properly?without clearing their hands properly?
Does the cashier back up to or lean against Does the cashier back up to or lean against counters with their hands out of sight?counters with their hands out of sight?
Does the cashier have seemingly normal items Does the cashier have seemingly normal items near by that they interact with more frequently near by that they interact with more frequently than normal?than normal?
TheftTheft
Investigative toolsInvestigative tools
Chip reconciliationChip reconciliationTo prepare for this portion of the To prepare for this portion of the investigation, build a grid listing each investigation, build a grid listing each denomination of chip and transcribe the denomination of chip and transcribe the count in values to the grid.count in values to the grid.
Example of chip reconciliation gridExample of chip reconciliation grid
Time 1000’s 500’s 100’s 25’s 5’s 1’s Total
Start (1400) 2000 1500 700 625 130 11 4966
14:12 500 125 30 1 656
14:35 1000 1000 500 100 2600
TheftTheft
Although most variances are errors that can be Although most variances are errors that can be proven through a thorough video review, some proven through a thorough video review, some are the result of employee theft.are the result of employee theft.
Shortages that have a chronological pattern or Shortages that have a chronological pattern or trend, involve the same person(s) or are trend, involve the same person(s) or are discovered after the fact as “strap errors” all discovered after the fact as “strap errors” all have the potential to be theft.have the potential to be theft.
TheftTheft
Spotting theft can be tricky and pursuing Spotting theft can be tricky and pursuing this type of investigation is not normally this type of investigation is not normally begun until after all other explanations begun until after all other explanations have been exhausted.have been exhausted.
TheftTheft
QuestionsQuestions
1.1. The 2002 Association of Certified Fraud The 2002 Association of Certified Fraud Examiners nation wide study indicated that on Examiners nation wide study indicated that on average cashiers were short more than average cashiers were short more than $__________ per day, per cashier? $__________ per day, per cashier?
2.2. Shortages between $100.00 and $500.00 have Shortages between $100.00 and $500.00 have historically found to be? historically found to be? Give one example of the three that were Give one example of the three that were outlined.outlined.
QuestionsQuestions
3. Of the “Paper work” listed in this presentation 3. Of the “Paper work” listed in this presentation to assist in performing a cage variance to assist in performing a cage variance investigation, there were 5 recommended investigation, there were 5 recommended types to obtain, name three of them. types to obtain, name three of them.
4. Given an example of why a cashier might be 4. Given an example of why a cashier might be counting down their drawer at an irregular counting down their drawer at an irregular time. time.
5. Give an example of a “Tip off / 5. Give an example of a “Tip off / RedRed Flag”. Flag”.
TheftTheft
TheftTheft
TheftTheft