How much money is your organization or business losing to embezzlement? How much money are your clients / customers losing to fraud schemes like embezzlement? Have you noticed the increased number of former employees who have been prosecuted for embezzling funds from the organization they use to work for? Tell the truth - were you shocked by the amount of money that was lost through embezzlement? I know I was.
No one wants to be the victim of a fraud scheme, but the possibility of victimization is a reality all organizations face. In our current economy there is increasing pressure on many of us. My husband lost his job. My pay or work hours have been reduced by 10%. I have been laid off. When one's income stream is reduced and the mortgage needs to be paid along with the real estate taxes and medical insurance this can cause staggering stress on home finances. Add college tuition that was started or promised in better economic times, and you've got a recipe for massive stress.
Lately we have been receiving significantly more requests to investigate incidents of embezzlement. Some suspect embezzlement and... Read More
I often hear, "I suspect that my employee is embezzling from my business. What do I need to do?" Most clients who ask this question have two things in common:
1. They are angry that one of their employees is stealing from them.
2. They still believe they can resolve the issue themselves.
But most business owners/managers do not possess the skills and experience necessary to ferret out the schemer. Often times they begin by having an accountant audit the company, but this is usually unproductive, because an audit conducted by an independent CPA firm is not designed to uncover fraudulent activity; it is intended to provide reasonable assurances that the financial statements do not include any material misstatement as a result of fraudulent activity. If during the audit, fraud is discovered, it is not by design but by accident. Only a very small percentage of fraud is revealed through an audit.
When organizations find themselves victimized by a fraud perpetrated by one of their own employees, they typically deny that an insider could commit such a heinous act of betrayal. Sometimes suspicions are dismissed because of friendship or familiarity. Even organizations that realize they are at risk of insider attacks often do not have the experience or ability to find and document actionable evidence that proves beyond a reasonable doubt that an individual employee has devised and implemented a scheme to defraud their organization.
Such an investigation is difficult, mainly because the embezzling employee has discovered a way to steal funds and cover evidence of his thefts. He has developed... Read More