For individuals who will have access to funds, scan the resume to look for previous jobs with companies that seem to have had financial trouble. Be suspicious. Check references.
Do not let the same person control both who pays and who gets paid. Speeding up or not reporting collections and slowing payments is a classic way to cover up an embezzlement.
Prepare thorough, consistent investigation reports with our free report template.
Determine what coverage you may or may not want to have. Surprisingly some business policies cover embezzlement losses automatically, others offer coverage for very little additional premium.
If there is evidence of embezzlement, do not confront the embezzler, speak to co-workers or immediately go to the police. Contact an employment attorney and your CPA to determine how to proceed. Tell them about any insurance coverage so that policy conditions are complied with.
Prepare thorough, consistent investigation reports with our free report template.
There are a number of measures that employers can take to reduce the number of opportunities within the workplace that allow embezzlement to occur- the chance that you can prevent embezzlement altogether is a bit of a stretch.
Many organizations and individuals face employee theft and embezzlement each year. Embezzlement is theft or misappropriation of funds by employees. According to a 2012 report from the Association of Certified Fraud Examiners (ACFE), “the typical U.S. business loses 7% of its annual revenues to employee fraud”. Small businesses have the most cases and the highest losses. Risk of fraud has increased due to the advancement of technology and progressive development of the world into a global village. Organizations should develop multi-layered fraud prevention strategies while keeping these statistics in view.
A company must have a documented exp ense reimbursement policy. A clear segregation of reimbursable expenses should be defined in that policy and every employee must receive a copy of reimbursement policy.
Only authorized personnel are allowed to enter areas where there is a lot of inventory or financial information. It should also be kept locked during off hours. Keys should be issued to specified individuals only.
If you or your practice has been the victim of employee embezzlement, prosecute the individual (s) responsible. Failure to do so sends the wrong message to your employees, the embezzler, and the public.
The first step in preventing employee theft is to make smart hiring decisions. Take the time to conduct as many of the following checks as possible. You may delegate this task to your practice manager, but be sure to confirm the results.
Rotating job duties will help you detect discrepancies more quickly and help prevent employees from stealing from you in the first place, because they will be aware that someone else will be reviewing their work soon.
Contact your insurance agent and ask for general liability or business liability insurance that includes coverage for employee theft or embezzlement. Often, this insurance will have many other types of coverage, which may pay off under other unexpected circumstances.
You can find criminal conviction records through most public records services. You also may visit the courthouse and search those records in the criminal courts division or hire an investigator to conduct these checks.
Implementing policies and procedures in your office to prevent and deter theft can create an atmosphere of anti-theft awareness with your employees. This can be the most important step you take because prevention is cheaper than attempting to recover your losses.
If you have to inform any employee about a suspected theft, make sure he or she is aware that this information is confidential and should not be shared. You must maintain strict confidentiality to avoid potential defamation claims and notification to the potential embezzler. Warn employees that a breach of this confidentiality will lead to termination of their employment as well. As with any secret, it is best not to tell anyone else if you want it to actually remain a secret.