How to Stay Protected Against Losses Resulting from Employee Embezzlement

Common Ways Employees Steal from Employers

Here are some ways employees and vendors steal funds from an employer:

• Creating fictitious vendors
• Stealing company property or owners’ or managers’ personal property
• Skimming or illegal use of company credit cards
• Embezzling cash kept for day-to-day business operations
• Inaccurate expenses report or overstatements of paid bills
• Check, and payment tampering, including writing company, checks or diverting company payments to personal accounts
• Payroll theft, including paying fictitious employees and inaccurate recording of payroll

Reasons Why Employees Steal from Employers

Embezzlers can be long-time workers of a company, and they can steal for many reasons ranging from disgruntlement with the company to their financial problems. The Hiscox report reveals that 33% of perpetrators work in the accounting/finance department, and 85% of embezzlement is committed by managers or higher officials. Nevertheless, embezzlement can happen in any company area and can be committed by any employee for any reason.

Warning Signs of Embezzlers

Often, embezzlers:

• Can pick up things quickly
• Are eager to learn about different areas of operation, so they can easily manipulate them for their gain.
• Work for long hours without going on vacations to prevent others from discovering their routines and moves
• Live a luxurious lifestyle
• Break rules and take risks
• Express dissatisfaction with the company