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Writer's pictureJerry Ipsen, CFE, MBA

Embezzlement and Small Business

EMBEZZLEMENT, not me! Are you sure you’re not already a victim? According to a HISCOX (specialty insurance company) survey, 80% of embezzlement cases occurred at small businesses and 30% of those cases were in excess of $500,000. Small business is defined as 150 or fewer employees.

The trusted employee who signs the company checks has been with you for years. No way! Listen…..your life has changed over the past few years and so has theirs. Medical emergencies, changes in relationships, money issues, addictions, passed over for promotion, etc. Most people committing fraud do not start out with that mindset. Things happen. Life changes and so does a person’s needs. Real or perceived. Is it right, No! Nevertheless, it does happen.

So, who better to look at first then the person signing your company checks? Whether it’s through your accounting software program, manual checks, or even payroll. Find out if checks are being written after hours or on weekends? Don’t be afraid to ask why!




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