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As the U.S. economy continues to struggle, employee misconduct in the form of corporate fraud and embezzlement will continue to be a costly problem for businesses.
However, a poor economy is not the only cause for employee theft.
Your business is always at risk from a baseline threat of corporate fraud...often by individuals
seeking to maintain a lifestyle larger than what they could enjoy on their current paycheck.
Here are some staggering statistics about fraud committed against businesses like yours:
2 out of 3 embezzlers are professionals who likely hold a degree in bookkeeping or finance
Women are more likely to embezzle than men, but
Men embezzle significantly more money than women, and...
The average embezzlement scheme lasts nearly 5 years!
Your answers to the following questions will help determine the strength of your company’s internal fraud controls.
If you cannot answer “YES” to each of these questions, then you are at a greater risk from employee theft.
Are employees who are involved in positions of trust bonded?
Is there adequate supervision at your place of business at all times?
Is the mail opened by someone other than the bookkeeper?
Is a daily listing of checks received by mail prepared by someone other than the bookkeeper?
If employees take more than a week of vacation, are their job duties assigned to others?
If you answered “NO” to any of the previous questions,
then your business is at a heightened risk of financial loss.