Billing schemes occurs when a fraudster causes the victim organization to issue a payment by submitting invoices for fictitious goods or services, inflated invoices, or invoices for personal purchases4. There are three subcategories of billing schemes defined as follows: Shell Company – creates a phony organization on the company’s books for use in paying fictitious invoices. Non-Accomplice Vendor – intentional mishandling of vendor payment in order to make fictitious payment to employee. Personal Purchases – purchases using company accounts such as a company procurement card.
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