Apartment associations are easy pickings for fraudsters: money transfers lack adequate oversight
Police warn that apartment associations face a high risk of becoming victims of fraud because there is often inadequate supervision of financial transfers.
Apartment associations are easy pickings for fraudsters: money transfers lack adequate oversight
Apartment associations are among Estonia's non-profit organisations that face the greatest risk of falling victim to fraud. The reason is weak control over financial transactions, a matter highlighted by Jaagup Toompuu, head of the fraud investigation centre at the Police and Border Guard Board.
Toompuu explained in an interview with the national broadcaster that the problem is two-sided. Firstly, many apartment associations lack proper internal control systems — often only one approver is needed to process a payment. Secondly, bank accounts are not regularly monitored, which means unauthorised transfers often go unnoticed for weeks or even months.
"When fraudsters get in, it is only discovered after some time, a week, two or three weeks later," Toompuu said.
According to him, apartment associations deserve special attention precisely because oversight of money movement there is particularly inadequate. This makes them an attractive target for fraudsters who seek organisations where financial assets can be misappropriated without rapid detection.
Source: Postimees
Source: Google News EE — Crime (et)