EXHIBIT 101 / THE HANDBOOK
EXHIBIT#76HIGH
Inventory & ProcurementComposite score: 57/100

Vendor Rebate Diversion

A volume rebate the business genuinely earned from a supplier gets quietly redirected to the relationship manager's own account instead of company books.

Risk Scores

Frequency40
Financial Loss70
Detection Difficulty80
Prevention Ease60
Composite Score57/100

Perpetrator Roles

ProcurementAccounting

Affected Formats

QSRFast CasualFine Dine-in

Detection Difficulty

Extremely difficult to detect without automated monitoring. Manual audits rarely catch this scheme.

HOW IT WORKS
Order placed with false address
Order prepared and dispatched
Driver cannot deliver
Order abandoned or stolen
Restaurant absorbs loss
Handbook Chapter · F-076

Delivery Address Fraud

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

Exhibit AI Detection

AI-Powered Detection Design

Cross-reference supplier contract rebate terms against actual purchasing volume and recorded rebate income.

Prevention Guidance

Audit Controls

Enhanced audit controls required. Standard procedures are insufficient — implement layered verification.

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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