Skimming

A

Skimming is a type of fraud in which an employee or other individual steals cash from an organization before it is recorded in the accounting system. The correct answer is A.

Skimming typically involves a cash-intensive business, such as a retail store, where cash is received from customers and is not immediately deposited into the organization's bank account. In this scenario, an employee or individual might steal cash from the organization's daily receipts, often using techniques such as pocketing cash or manipulating credit card transactions.

One way that skimming can be accomplished is through the use of a "dummy" customer account. This account is created by the perpetrator and used to record sales to a non-existent customer. The perpetrator then pockets the cash from the sale and the transaction is never recorded in the accounting system. This allows the perpetrator to avoid detection and continue stealing cash from the organization.

Another common method of skimming is through the use of a skimmed credit card. In this scenario, the perpetrator uses a device to capture credit card information at the point of sale. The credit card transaction is completed normally, but the perpetrator is able to use the skimmed credit card information to make fraudulent purchases.

Regardless of the method used, skimming is a serious form of fraud that can have significant financial consequences for organizations. To prevent skimming, organizations should implement strict cash-handling policies and procedures, conduct regular audits, and ensure that employees are properly trained to detect and prevent fraud.