EXHIBIT 101 / THE HANDBOOK
EXHIBIT#74HIGH
Licensing & ComplianceComposite score: 57/100

Liquor License Fraud

A restaurant sells alcohol outside licensed hours, to minors, or without a valid license at all.

Risk Scores

Frequency30
Financial Loss80
Detection Difficulty70
Prevention Ease70
Composite Score57/100

Perpetrator Roles

IT / Tech

Affected Formats

Fine Dine-in

Detection Difficulty

Moderately difficult. Requires consistent audit procedures and data analysis to surface.

HOW IT WORKS
Catering booking confirmed
Deposit collected
Caterer does not arrive
Event disrupted
Client loses deposit and event
Handbook Chapter · F-074

Catering No-Show Fraud

Full chapter with identity card, real examples, warning signs, detection and prevention guidance.

Exhibit AI Detection

AI-Powered Detection Design

Compare alcohol sale timestamps directly against the restaurant's actual licensed hours.

Prevention Guidance

Audit Controls

Standard audit procedures are effective. Regular cash counts and reconciliation catch this scheme early.

Technology

Automated POS monitoring, real-time exception reporting, and AI-driven anomaly detection significantly reduce exposure.

Culture & Training

Staff awareness programs, anonymous reporting channels, and clear consequence policies deter opportunistic fraud.

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