Someone who is embezzling is going to act as though everything is fine, but you might notice a recurring pattern that feels wrong. Maybe it is.
Embezzlement | continued from page 15
• Embezzlers work where they have access
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to money, and they often tend to be in positions of responsibility and trust. Segregate responsibilities and apply internal controls. Accounting duties should be split between at least two people. You can also set things up so different people in different job categories are double-checking each other. Use “direct deposit” of paychecks into employees’ bank accounts and segregate duties, if possible, with approval of payroll made by someone other than the input person. Listen to employees. When fraud is detected, after all, it is usually because other employees have noticed something. Pay attention. The typical embezzler is not someone you would expect to be an embezzler at all. Look closer at people who need money and like to spend it. Look for irregularities. It’s hard to keep everything straight when you are deceiving people, so embezzlers do tend to make mistakes that, in hind sight, are clear indicators of a problem. C ontinue to talk about the company’s values and ethics with everyone who works for you. Let them know where you stand on the subject, and make sure that
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What should you be looking for?
• Look for employees who seem like
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you stand on firm, public, ethical ground. Do your best to hire honest people, and model that same honesty yourself. I f you have to act, be quick about it.
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candidates for embezzling. Debt, disgruntlement, divorce, and drugs can motivate an otherwise-honest employee into an embezzler. If a spouse loses a job, for example, or you know an employee has to pay a lot of medical bills, you should pay attention to that. Gambling, lavish spending, entitlement, long hours, territorial behavior, and no vacations are other warning signs. Don’t give anyone who has these warning signs with opportunities that could be too much for them. S omeone who is embezzling is going to act as though everything is fine, but you might notice a recurring pattern that feels wrong. Maybe it is.
People are most likely to embezzle when their ethics are sketchy, they’ve rationalized what they are doing, and they have an opportunity to get away with it. Do your best to hire ethical people and shut down opportunity, and you will have done most of what you need to do.