From a Law Firm Trust/IOLTA accounts, to business checking accounts, and to fraudulent payments to vendors an embezzler is every business nightmare. Nothing can destroy a business quicker that having an embezzler working for you.
A recent article from Property Casualty 360 discusses the 5 warning signs on an embezzler:
1. Intelligent & curious--Embezzlers often pick things up quickly and are eager to know how everything in the office works. Once they learn the processes, they can manipulate them for their own gain.
2. Extravagant Lifestyle--Embezzlers will often flaunt their ill-gotten wealth.
3. Egotistical risk taker--An embezzler can be a rule breaker who may overuse sick time or take advantage of some other workplace policy. What’s more, when employees begin stealing, they may often take small amounts to test the waters.
4. Diligent & ambitious--An employee always comes into the branch or office early and always leaves late, it could be a red flag.
5. Disgruntled & Entitled--An employee who feels they are being treated unfairly may be tempted to steal as a way to even the score.
As with most insurance risks; prevention through proper procedures is always medicine. But when prevention fails make sure that your firm or business has the proper crime insurance coverage. Most professional liability insurance policies will only provide limited coverage if any for this type of exposure. Businesses need to have a properly endorsed business owners policy or in many cases a properly endorsed crime insurance policy to cover this risk. It is important to work with your insurance professional to make sure that you are properly covered.