At Intel Israel, a staff member redirected over $800,000 by exploiting weak controls. The trick? Reclassifying hardware purchases as “services” to skip delivery verification and keeping each invoice below her approval threshold, all with the support of an external supplier.
No fancy tactics – just someone who knew how the system worked and how to work around it.
Reminders for all of us:
– Collusion is hard to catch if no one’s watching;
– “Services” shouldn’t mean “no control”;
– Approval thresholds are not safety nets – they can be risk zones; and
– Regular audits matter, even (especially) for small transactions/low-value procurement.
Link to article: www.calcalistech.com/ctechnews/article/hkj4lcbmgx