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Fraud: The Heartbreaking Fraud

Articles Katherine Cobb, CFE, CTP Apr 06, 2026

The company’s office manager was considered a member of the family until the owner caught her padding her salary.

A trusted office manager exploited weak internal controls to steal more than $200,000 over two years through inflated payroll, unauthorized expenses, and fraudulent checks — highlighting how overreliance on trust without proper oversight can expose organizations to significant financial and operational risk.

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Katherine Cobb, CFE, CTP

Katherine Cobb is senior vice president, Treasury Management at Bank of Houston in Houston.