Guide to Preventing Workplace Fraud - Chubb Group of Insurance ...

Misappropriation of Waste, Scrap, and Salvage Property
Companies that work with waste, scrap, and salvage property are common
targets of fraud since they may have no clear expectation of the value or
amounts due from the sale of these assets.
Scrap Management
James, a production process supervisor in the ABC Company manufacturing
plant, is responsible for oversight of a process where cutting and shaping of
copper components is performed. This process produces copper scrap and
waste that is collected for reuse or resale by the company. James routinely
returned to the company plant during evening hours, filled his pickup truck
with scrap and waste, and then sold this material to a recycler.
In this scenario, access control measures could have either prevented James
from returning to the plant during evening hours or at least alerted
management that he was doing so. Effective physical security measures
include monitoring who is in a company’s facilities, knowing when they are
there and, in the case of nonstandard business hours, confirming that
employees, vendors, and visitors have a valid reason to be there.
Key considerations for a company include:
■
Physical security of work sites should include measures to
appropriately restrict work site access, and
■
Subjecting vehicles entering and exiting company premises
to inspection.
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