EXHIBIT 101 / THE HANDBOOK
EXHIBIT#9SEVERE
Cash & RevenueComposite score: 80/100

Gift Card Fraud

Stored value drained through unauthorized transactions before a customer ever redeems it. Balance-scraping attacks can empty thousands of cards before anyone spots the pattern.

Risk Scores

Frequency80
Financial Loss80
Detection Difficulty70
Prevention Ease60
Composite Score80/100

Perpetrator Roles

CashierIT / Tech

Affected Formats

QSRFast CasualFine Dine-in

Detection Difficulty

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

HOW IT WORKS
Fake vendor created
Invoice submitted for payment
Manager approves payment
Funds transferred out
Vendor never delivers
Handbook Chapter · F-009

Fake Vendor Invoices & Shell Company Fraud

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

Exhibit AI Detection

AI-Powered Detection Design

Monitor the balance-check system for sequential-testing patterns and unusually high query volume from a narrow set of sources.

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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