Fraud and Financial Crime in Condominiums

Financial crime in condominiums can have serious consequences and erode trust among residents, directors, and management. This article highlights various types of financial crime that can occur in condominiums, including kickbacks, improper payments, unsupported or altered payments, and diversion of funds. The article also emphasizes the importance of protecting condominiums from cybercrime, especially with the rise of remote work due to the pandemic. Steps to prevent financial crime include implementing policies and procedures within management companies and condominium boards, as well as practicing due diligence and red flag awareness. Directors are encouraged to consult with insurance companies to ensure appropriate coverage against financial loss. Overall, protecting against financial crime involves applying common-sense protective measures and being vigilant in detecting and addressing potential issues.