SHORT ANSWER · FRAUD REVIEW
How do you analyze bank statements for fraud?
You analyze bank statements for fraud by proving the set is complete first, then reviewing round-dollar transfers, unusual payees, cash withdrawals and timing. Completeness comes first because a missing month hides activity: in Matter 25-117, April was never produced, and 3,664.55 of net activity sits in that hole. Choosing a tool? See the best bank statement analysis software.
THE METHOD
What order should the review go in?
Numbers first, patterns second. Each step below works on the rows the step before it made safe.
- 1
Prove the set is complete
Every statement should tie from opening to printed closing, and each month should open where the last closed. ZeraBooks does this step for every account and cardholder; the method is set out in forensic bank statement analysis.
- 2
Pull the round-dollar transfers
Filter for whole amounts in the hundreds or thousands, especially transfers to accounts outside the production. Real bills rarely land on .00 again and again.
- 3
Sort by payee
List every payee with a count and a total. Look for names that appear only once and names close to a real vendor’s. Check images add the payee the statement line leaves out.
- 4
Total the cash
Add up ATM and counter withdrawals by month. A steady pattern that suddenly changes, or repeated amounts just under a round figure, gets a question.
- 5
Look at the timing
Note activity on weekends or outside business hours, just before a period closes, or right after a large deposit lands. Timing turns a list of odd rows into a story you can test.
ZeraBooks builds the workflow around your matters and your template for free. No development charge, whether it’s a forensic department or one person.
GOING FURTHER
Which tests come after the basic review?
A first-digit test compares the spread of leading digits in the amounts with the pattern natural data follows; how is Benford’s law used in forensic accounting? covers when it works.
When income is the question, examiners rebuild it from the deposits themselves. What is the bank deposits method? explains the calculation. Both tests break if a month is missing, which is why step one never gets skipped.
Does ZeraBooks find fraud in bank statements?
No. ZeraBooks proves the statements are complete and accurate, so your review starts on solid rows. Spotting and judging fraud is the examiner’s work.
Why are round-dollar transactions a red flag?
Genuine purchases and bills usually carry cents. Repeated whole-dollar transfers can point to money being moved on purpose, so they get a second look, not a conclusion.
How many months of statements should I review?
Enough to see the normal pattern before and after the period in question. Whatever the range, every month in it has to be there and prove out.
FREE CUSTOM BUILD
Prove the set first.
Then go looking.
ZeraBooks ties every statement and flags any month nobody produced, so your fraud review starts on rows you can defend.