If you’ve ever handed over the financial keys of your business and thought, “I hope they’re doing the right thing,” you’re not alone. Most owners want to trust their CFO or top finance person. And honestly, trust is healthy… until it turns into blind trust.
That’s exactly how companies end up on the wrong side of stories like the recent Washington case, where a former CFO was convicted of multiple counts of wire fraud after quietly siphoning money out of the business for personal use. No dramatic movie-style scheme. Just a person with access, opportunity, and zero oversight.
Here’s the uncomfortable truth:
Fraud rarely happens because a business is reckless. It happens because a business is trusting.
Let’s break down how to protect your company without turning your workplace into a police state.
Why CFOs Become “Untouchable” — and Why That’s Dangerous
A talented CFO can feel like a superhero. They know your numbers inside and out. They take financial stress off your plate. They speak the language you don’t have time to master.
But here’s the trap:
When one person controls too many pieces of the financial puzzle, they can control the outcome.
Think about it. If someone can
- move money,
- approve invoices,
- reconcile the accounts,
- and report the financials…
…they also have everything they need to hide fraud for years.
And if you’re nodding along thinking, “Yep, that’s my setup,” don’t panic. This is common. It just means it’s time to tighten things up.
The Real Risk Isn’t Skill. It’s Opportunity.
Most fraudsters don’t start out intending to commit fraud. There’s a pressure point (money problems, a big ego, gambling, even a sense of entitlement), and then there’s an opportunity.
The CFO convicted in the DOJ case didn’t pull off anything sophisticated. They just used the access they already had — because no one checked behind them.
If one person
- initiates spending,
- approves the spending,
- and reconciles the spending,
you’re basically handing them a blank check and hoping for the best.
Hope is not a control.
So How Do You “Check Your CFO” Without Micromanaging Them?
Here are the guardrails that protect your business and signal that you’re a serious operator.
1. Split Up Key Financial Duties
No single person should handle every step of a financial transaction.
This is called separation of duties, and it’s the #1 fraud-stopping tool businesses ignore.
Examples:
- The person who approves payments shouldn’t also reconcile the bank account.
- The person who enters bills shouldn’t be the one who sends the payment.
- The person who handles payroll shouldn’t be the one who adds new employees into the system.
Even in a small business, you can outsource part of this to create natural checks and balances.
2. Require Dual Approval on All Outgoing Money
Wire transfers, ACH payments, and anything over a certain dollar amount should require two people.
This is non-negotiable.
The convicted CFO in the case committed fraud through wire transfers. A simple dual-approval workflow could’ve stopped it.
3. You (or the Owner) Should Review Bank Statements Monthly
Not a PDF they hand you.
Not a spreadsheet they summarize.
The real statements from the bank.
Look for:
- odd vendors
- payments you don’t recognize
- round numbers
- wires or transfers with vague descriptions
It takes 10 minutes. It can save you millions.
4. Rotate Financial Duties Annually
If someone never takes a vacation or never lets anyone else touch their processes, that’s a giant red flag.
Fraud relies on routine and secrecy. Break the routine.
5. Bring in a Third-Party Reviewer
This could be:
- an external bookkeeper
- a forensic accountant
- a fractional controller
- or a CPA firm
Fresh eyes see what your internal team doesn’t.
They also remove the “Well, they’re such a nice person, they’d never…” bias we all have.
The Hardest Question Every Business Owner Should Ask
“If my CFO suddenly disappeared for 30 days, would my financial operations still function — and would anything concerning be uncovered?”
If the honest answer is no, then your business isn’t protected.
And fixing that doesn’t mean you distrust your CFO.
It means you’re running your business like a real institution, not a personality-driven operation.
Trust Isn’t a Control. Systems Are.
You can trust your team deeply and still build a structure that protects everyone — including the honest employees who don’t want the appearance of unchecked power.
Good people love transparency.
Fraudsters rely on the lack of it.
Your Next Step Today
Pick one financial process: payroll, accounts payable, or bank reconciliations.
Now ask:
“Who has full control of this, and how do we split the control in two?”
That one change alone cuts your fraud risk dramatically.
