Under that kind of pressure, it’s human nature to look for solutions — even ones we’d otherwise call wrong. Add a powerful rationalization — “Anyone would help their child if they could” — and, if your accounting systems are soft enough, the only thing stopping a disaster is your controls, or lack thereof. SO … IS FRAUD ABOUT GOOD AND BAD PEOPLE? Here’s my challenge: Stop thinking in black and white or trusting your gut to know the difference. Instead, ask yourself if your dealership is a place where opportunity exists for fraud to thrive. If you focus only on the character of your people, you’re setting yourself up for that gut-punch, “I never would have expected it from her.” If you focus on eliminating opportunity, you protect your team — and your business. The following are the controls that matter: • Routine bank reconciliations performed daily and reviewed periodically by owners or executive managers. • Segregation of duties — even for a small staff. Get creative with rotation and cross-training. • Clear, enforced policies for recording, tracking and reconciling payments. • Following up when something seems off or the explanation sounds confusing. Communication and a little skepticism go a long way. I’ve investigated fraud losses in dealerships numerous times in recent years, even losses that ran into the millions. Improper or missing bank reconciliations, bottleneck employees and confusion over payments were almost always present. Fraud is possible when controls are missing, and opportunity opens the door. The rest is simply human nature, sometimes pushed to an extreme. FINAL THOUGHT — YOU HAVE THE POWER Don’t let “I never would have expected that from him” be the first sign you have a problem. Instead, get proactive about controls, foster a culture of transparency and remember: Given the right pressures and rationalizations, opportunity is all it takes for fraud to happen — even among the “good” ones. Ask yourself today, “If I were desperate, where does opportunity exist in my store?” DRIVING HUNGER OUT OF ARKANSAS AADA and the Arkansas Hunger Relief Alliance At the Arkansas Hunger Relief Alliance, we believe no Arkansan should go to bed hungry. Every day, we work with partners to expand access to nutritious food across all 75 counties through programs like No Kid Hungry Arkansas, SNAP and WIC Outreach, and the Arkansas Beef Project. This mission is only possible through strong partnerships. AADA has stepped up in a big way, supporting hunger relief with a donation presented last fall at Hug Chevrolet GMC in Charleston. “This gift demonstrates the power of community partnerships,” said Sylvia Blain, CEO of the Alliance. “Our friends at AADA are showing that business leaders can play a direct role in tackling hunger and improving the lives of our neighbors.” Arkansas’ auto dealers are pillars of their communities. Now, through this partnership, they’re also ensuring families have access to healthy food. To showcase this commitment, the Alliance and AADA will host a press conference on Thursday, Oct. 9, at Gwatney Buick Chevrolet in North Little Rock. Together, we’ll highlight the impact of this partnership and call on others to help drive hunger out of Arkansas. 20 Arkansas Auto Dealer
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