EXHIBIT 101 / THE HANDBOOK
EXHIBIT#98HIGH
Payroll & LaborComposite score: 52/100

Employee Identity Theft

An HR staffer with legitimate access to SSNs and banking data uses a real employee's identity for personal fraud — no breach, no export, just normal-looking access put to abnormal use.

Risk Scores

Frequency20
Financial Loss80
Detection Difficulty70
Prevention Ease60
Composite Score52/100

Perpetrator Roles

IT / TechAccounting

Affected Formats

QSRFast CasualFine Dine-in

Detection Difficulty

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

HOW IT WORKS
Marketing fund collected from franchisees
Funds not spent on marketing
Franchisor diverts funds
Franchisees see no marketing benefit
Audit reveals misuse
Handbook Chapter · F-098

Franchise Marketing Fund Fraud

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

Exhibit AI Detection

AI-Powered Detection Design

Cross-reference confirmed employee identity theft cases against internal HR data access logs for that employee's file, looking for access outside routine payroll processing.

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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