Casinos face fraud risks both internal and external

Casinos can lose a lot more.

Casinos

Protecting casino assets is a personal specialty

At Guard Point Management, Owner Chris Parman having spent five years working with Graton Resort and Casino in Rohnert Park, CA as a Director of Investigations, Graton Gaming Commission Regulator. Here Chris studied internal employee fraud threats to Sonoma County casinos and the external threats of cheating and fraud from patrons. Thanks to his work in casino fraud management, Chris Parman would go on to found Guard Point Management, dedicated to helping small and mid-sized businesses defend their assets and employees from the detrimental effects of casino fraud. Guard Point combines core services for the security of any business, including fraud risk management assessments, fraud detection and prevention, employee background checks, and active shooter training.

The protection of casino assets is a personal specialty of Guard Point Management, with owner Chris Parman having spent five years working with Graton Resort and Casino in Rohnert Park, CA as a Director of Investigations, Graton Gaming Commission Regulator.Here Chris studied internal employee fraud threats to Sonoma County casinos and the external threats of cheating and fraud from patrons. Thanks to his work in casino fraud management, Chris Parman would go on to found Guard Point Management, dedicated to helping small and mid sized businesses defend their assets and employees from the detrimental effects of casino fraud. Guard Point combines core services for the security of any business, including fraud risk management assessments, fraud detection and prevention, employee background checks, and active shooter training.

Just like so many Hollywood movies have depicted, money laundering and card counting are fairly large issues that casinos today face. Acts like the Bank Secrecy Act or Title 31, and the Anti Money Laundering Statute have been put in place to prevent individuals from using casinos to funnel illegally obtained money. However, it is up to the casinos to report and track certain instances that may be signs of fraud or laundering. For instance, casinos are required to report, via a specific FinCen (Financial Crimes Enforcement Network) form, any intake or payout of more than $10,000 made within a normal 24 hour business day. As an expert in Know Your Customer laws, Chris Parman has years of experience conducting due diligence investigations on where gamblers obtain their money. Chris brings these resources to any casino in need of fraud risk management, helping them to create a system of fraud prevention that focuses on the areas casinos are most at risk; money laundering and casino cheating.

California sees millions of travelers a year, many looking for a chance to get away or just relax. Casinos, hotels, restaurants, and bars can all stand to profit from tourism. Perhaps this is why these institutes must keep a particular eye on the fraud risk triangle, which shows that employees with ample opportunity, incentive or pressure, and rationalization will commit employee fraud. While it seems that businesses in high tourism areas stand to receive increased profits, they also become susceptible to more business fraud risks. All businesses face different fraud risks, and some more than others. Casinos are one of the industries in which it is possible to be hit by fraud loss from almost every front; from internal theft and vendor fraud, to casino cheating and card counting from patrons. As a several billion dollar a year industry, casinos can stand to put more money into fraud detection and prevention than other enterprises.

Indian Casinos throughout the United States face some of the biggest threats in the industry, particularly as newly established venues. California’s Indian Casinos are no strangers to the rigorous work that has to be put into opening a casino, one of the most important aspects of which is implementing fraud risk management. Lack of fraud risk management for a new casino can be devastating, causing some to close their doors faster than it took to open them. Having helped to establish the Independent Gaming Commission that all Indian Casinos must have when opening a new establishment in California, Chris Parman has particular experience with new casinos. From his experience assessing and managing fraud risk for the Graton Resort and Casino, Chris brings an insider touch to casino fraud risk management.

The daily operation of a casino is complex

You have operators needing to defend their business and assets against casino fraud while complying with state and federal regulations. At the same time, these businesses also need to provide exemplary customer service in order to keep their guests coming back to spend money. Guard Point Management offers casino risk assessment and management solutions, layered to better create complete coverage against fraudulent activity. Owner Chris Parman has twenty years of experience in law enforcement, followed by five years in the casino regulatory environment as a casino fraud expert. Specializing in the protection of large amounts of currency and major assets in the gaming industry, Chris applies this insider knowledge to every California casino risk assessment he undertakes. This means using the highest quality equipment, including equipment to perform more extensive identity check where justified by federal guidelines or at risk to high dollar fraud exposure.

Casino fraud risk management is key to any large scale casino. The casino gaming industry is as highly documented as any large scale business today. Running a casino with little fraud loss requires surveillance and security, compliance with state, federal, and local gaming commissions, and additional human components such as staff and casino risk management consultants. A risk assessment will include looking at the process and controls of the business, the organizational structure, and the segregation of duties amongst staff. The most common things that a risk management analysis will present are any misappropriations of funds, improper reporting of financial and non financial business assets, compliance with state and federal regulations, and any other illegal instances, such as money laundering or slot machine tampering. In many cases, casinos need a risk assessment that goes beyond the traditional needs of other industries. Things like additional surveillance and identification checks may need to be implemented in order to address blind spots where fraud is likely to occur. All of these things are taken into account during a casino risk assessment in order to create a unique fraud prevention plan.

Gaming Industry

The very nature of the gaming industry is what lends it to a variety of instances of casino fraud. It’s easy to find gambling cheats online or pick up casino cheating devices before hitting the tables or slots. Many come to a casino with dreams of grandeur and what they believe are easy tricks to achieve them. Some play with counterfeit money or fake credit cards, some become casino card counters or place their bets after the dice have been tossed, and others hack slot machines with phone applications and cheat codes for slot machines. These are all common means of fraud that casinos face on a regular basis.

Prevention Plan

Beginning a casino fraud prevention plan can seem like an impossibly large task. However, speaking to a casino fraud consulting firm can easily put you on the right path to creating an actionable plan for casino fraud prevention. Let Guard Point Management help you create a detailed and structured plan for fraud prevention in your enterprise by scheduling a free fraud assessment consultation. During this assessment, Guard Point Management will ask the questions needed to deliver a plan that targets your casinos specific needs.

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