1. Cage Investigations Steve Allensworth

2. Cage Investigations A frontline casino cashier is responsible for several thousand dollars during their shift. They will handle many transactions involving cash, checks, chips and on occasion make errors… And on occasion steal!

3. Cage Investigations A 2002, Association of Certified Fraud Examiners nation wide study indicated that on average cashiers were short more than $5.00 per day, per cashier...! *This study was based on all cash handling positions and not focused on casino only data. www.acfe.com

4. Cage Investigations Shortages between $100.00 and $500.00 have historically been found to be; a) Overpays on chips or checks b) Bad fills or credits c) Paperwork (accounting) errors

5. Cage Investigations Identify and isolate the area a) Cage frontline window b) Vault window c) Cage main bank

6. Frontline window investigation: Obtain the paperwork from the window in question. a) Cage count sheet (in) (or previous shift “out”) b) Cage count sheet (out) c) Junk sale sheet (“cage even transfer form”) d) Adding machine tapes from checks e) Transaction report for the drawer time frame.

7. Performing the investigation Once items “a” through “e” are obtained from cage personnel, you are ready to begin the investigation. Real time video review of each transaction can be time consuming and lengthy. Having a second person review transactions when the error or theft is not discovered or obvious is highly recommended.

8. Investigative tools Keep in mind that the cashier is performing a blind count under normal circumstances, so they will be trying to be as accurate as possible.

9. Investigative tools Note any changes or scratch-through on the count, in the strapped currency column and watch the cashier’s behavior if they return to the bulk drawer in the event of an unsuccessful first count, as both could be significant.

10. Watch the process!

11. Investigative tools Note if the cashier is counting down their cash drawer at irregular intervals that are not related to, end of shift or other required counts. This could mean that the cashier has reason to believe that they have, shorted a customer, shorted the cash drawer by overpaying a transaction or attempting to steal from the cash drawer.

12. Investigative tools Be alert to the tip offs / RED flags. Does the cashier leave their drawer open when they are not performing a transaction? Does the cashier have personal items at their station?

13. Investigative tools Is the cashier going to their body or clothing without clearing their hands properly? Does the cashier back up to or lean against counters with their hands out of sight? Does the cashier have seemingly normal items near by that they interact with more frequently than normal?

14. Theft

15. Investigative tools Chip reconciliation To prepare for this portion of the investigation, build a grid listing each denomination of chip and transcribe the count in values to the grid.

16. Example of chip reconciliation grid Time1000’s500’s100’s25’s5’s1’sTotal Start (1400)20001500700625130114966 14:12500125301656 14:351000 5001002600

17. Theft Although most variances are errors that can be proven through a thorough video review, some are the result of employee theft. Shortages that have a chronological pattern or trend, involve the same person(s) or are discovered after the fact as “strap errors” all have the potential to be theft.

18. Theft Spotting theft can be tricky and pursuing this type of investigation is not normally begun until after all other explanations have been exhausted.

19. Theft

20. Questions 1.The 2002 Association of Certified Fraud Examiners nation wide study indicated that on average cashiers were short more than $__________ per day, per cashier? 2.Shortages between $100.00 and $500.00 have historically found to be? Give one example of the three that were outlined.

21. Questions 3. Of the “Paper work” listed in this presentation to assist in performing a cage variance investigation, there were 5 recommended types to obtain, name three of them. 4. Given an example of why a cashier might be counting down their drawer at an irregular time. 5. Give an example of a “Tip off / Red Flag”.

22. Theft

23. Theft

24. Theft