Could You Detect Employee Fraud in Your Casino?

Could You Detect Employee Fraud in Your Casino?
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December 3, 2021

Resource: Blog Industry: Casino
Tags: Anti-Money Laundering (AML), Prevention, Vector LMS and Training Management

Organizations have lost approximately 5% of their annual revenues to employee fraud and abuse, according to a recent report by the Association of Certified Fraud Examiners. This makes understanding issues that lead to internal fraud abuse and learning how to prevent it critical for those in hospitality, especially gaming.

Loosely defined, fraud is all multifarious means which human ingenuity can devise, and which are resorted to by one individual to get an advantage over another by false suggestions or suppression of the truth, and includes all surprise trick cunning or dissembling, and any unfair way by which another is cheated, according to Black’s Law Dictionary.

Casinos are particularly susceptible to fraud as they are a cash business, making them ideal targets for the occupational and outside fraudster, thief, and cheat. In fact, no other industry trades in cash the way the casino industry does with the exception of banking and finance industries.

Reasons the Gaming & Hospitality Industry Are More Vulnerable to Fraud

And according to NAGRA, North American Gaming Regulators Association, there are certain conditions that make a gaming hospitality environment particularly fertile grounds for occupational fraud, such as:

  • Internal controls are absent, weak or loosely enforced
  • Employees are hired without due consideration for their honesty and integrity
  • Employees are poorly managed, exploited, abused, or placed under great stress to accomplish financial goals and objectives
  • Management models are themselves corrupt, inefficient, or incompetent
  • A trusted employee has an insolvable personal problem, usually of a financial nature, brought about either by family medical needs, alcoholism, drug abuse, excessive gambling, or expensive tastes
  • The casino has fallen on hard times (i.e., is losing money or market share) or its property is becoming passé or market share), or its property is becoming passé
  • Internal audit resources are inadequate
  • Security resources are inadequate

With one or more of such conditions present, the opportunity for employee fraud increases exponentially, putting the following areas at risk: cage, front window, main bank, change bank, and count teams – both hard and soft. Gaming areas can also be at risk of fraudulent activity, from games of chance and table games to scams involving the dealers.

In fact, a study of 39 major casinos found 17 instances of fraud involving players’ club operations that were conservatively estimated at over $3 million in losses during a two-year period.

What Casinos Can Do To Protect Themselves Against Fraud

Vector Solutions Casinos’ eLearning compliance training, helps protect the gaming industry from financial crimes. A full suite of training solutions includes online courses, an easy-to-use LMS platform, anti-money laundering (AML) certification, and best-in-class conferences, seminars, and workshops.

Vector Solutions Casinos provides casinos with the best online training solutions and customer support available with …

1. Online Courses

We now offer over nearly 150 online courses, such as AML Title 31, Responsible Gaming, Cybersecurity, Leadership, Customer Loyalty, and Sexual Harassment Prevention, just to name a few. All our courses are customized to meet casino compliance requirements and regularly updated to ensure compliance with Federal regulations.

2. LMS Platform

Train employees, test their knowledge,  track their progress, review reports, and print certificates of completion all from one place. Many companies are using our total management solution to save thousands of dollars in expenses while reducing the risk of fines and penalties.

3. Conferences

Compliance through events, such as webinars, conferences, seminars, and workshops.

At Vector Solutions, we’re proud to lead compliance training to protect against financial crime with 24/7 online training, classroom tracking, real-time training reports, compliance with federal regulations, unparalleled support, multilingual course options, and so much more.

Contact us to request a free demo today. You can also contact our Support Team at [email protected].

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About Vector Solutions

Vector Solutions for Casinos has been in the industry for over 10 years, as the leading Saas provider for online Title 31 and Anti-Money laundering training, helping clients meet federal mandates for reporting certain currency transactions to uncover money laundering and other financial crimes. Over the years we have built a comprehensive gaming-specific course catalog containing nearly 150 online training courses from Customer Loyalty, to Safety, Leadership Training and more, all hosted in our powerful Learning Management system, Vector LMS (formerly CELEXA, a Casino Essentials brand).

We proudly serve over 350 casinos nationwide. Vector LMS for Casinos is trusted by Boyd Gaming, Jack Entertainment, Bally’s Corporation, Four Winds Casinos, Wind Creek Hospitality, Desert Diamond Casinos, Muscogee Creek Nation Casinos, Delaware North Casinos, & Foxwoods Resort Casino and more! Our learning management system, Vector LMS for Casinos, is the most user-friendly platform on the market.

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