EXHIBIT 101 / THE HANDBOOK
EXHIBIT#40HIGH
Licensing & ComplianceComposite score: 67/100

Insurance Fraud

A staged or exaggerated incident claim — a slip-and-fall, equipment damage — extracts an inflated payout.

Risk Scores

Frequency40
Financial Loss90
Detection Difficulty70
Prevention Ease70
Composite Score67/100

Perpetrator Roles

Manager

Affected Formats

Fine Dine-inQSR

Detection Difficulty

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

HOW IT WORKS
Customer pays with counterfeit
Cashier accepts note
Note deposited at bank
Bank rejects counterfeit
Loss absorbed by restaurant
Handbook Chapter · F-040

Counterfeit Currency Acceptance

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

Exhibit AI Detection

AI-Powered Detection Design

Track claim frequency and pattern against financial pressure signals and prior claim history.

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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