Embezzlement By Eve

Embezzlement By Eve

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Employment Fraud Ladies Involved Too

In a clear illustration that you cannot be too careful comes a news report of a lady in California, USA who defrauded her boss of more than $1.6 million dollars. It took her just about six years to steal this amount. That works out to about $260,000 a year!

The lady worked for a cement products company as the administrative secretary and was put in charge of accounts receivable. She processed incoming checks from customers and deposited them into the bank. Many of them went into an account she opened in another bank. She would then destroy the invoices and also delete them from the companys computer.

The lady bought herself a four bedroom apartment, a high-end motorcycle for her husband, ate at fancy restaurants and bought much-in-demand tickets to music concerts. She was found out when the company accountant began to realize that the profits did not match the amount of sales.

It is a classic text book fraud case where everything that should have been done was not. All the conditions that are necessary for occupational fraud were present.

To begin, the embezzlers background was never checked when she joined the company. She had previously spent 16 months in jail on credit card fraud. She was put in charge of processing incoming payments and also banking them. This is a big no-no. Finance related responsibilities should be segregated and not all put in one persons hands.

Her lavish life-style that was way above her income level was never questioned. This is a red-flag in employee fraud situations. Studies show that it takes an average of two years before internal fraud is discovered. In this case it took six enough time for the woman to do some serious financial damage to the company.

Small businesses are at a serious risk from employee fraud because of poor or non-existent internal controls. In this instance it would appear that there were none. A large percentage of thefts are discovered by accident as in this case. Most companies that are victims of fraud never recover their losses. Happily, in this case, they are getting some back but will never recover the full amount.

Several reports reveal that a large percentage of employee fraud is committed by men (70 percent) but there is an emerging trend of more and more women being involved or doing the actual cheating.

So check thoroughly before hiring. You cannot be too careful with your companys money, even in the hands of a sweet lady.

Read More: http://www.authbridge.com/resource-center/industry-updates.html

About the Author:
AuthBridge is one of Indias leading credentials screening and risk management consultancy. Our services are driven by experienced personnel and backed up by the latest technology. We also provide substance abuse testing, risk advisory and corporate fraud investigation solutions. AuthBridge is ISO 9001:2000 certified for quality and ISO/IEC 27001:2005 compliant for information security.

Know more about the background screening industry, go to http://www.authbridge.com/



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