Inside Job: How Embezzlement Happens and What You Can Do to Prevent It

ARTICLE | January 13, 2025

Authored by Vasquez + Company

Small businesses often focus on external fraud threats, but internal fraud, such as embezzlement, can be equally harmful. "Don't Ignore the Risk of Embezzlement" delves into the methods employees may use to steal from their employers, from fraudulent billing to Ponzi schemes. This article highlights a real-world case of embezzlement involving a $7 million theft and offers practical steps business owners can take to strengthen their defenses, including separation of duties, payroll checks and balances, and forensic accounting.

Key Points:

• Embezzlement involves an employee abusing a position of trust to steal assets.
• Internal controls, such as segregation of duties and management reviews, are crucial in preventing fraud.
• A real-world case of embezzlement illustrates the financial and legal consequences.
• Forensic accountants can investigate and support legal actions if fraud is detected.

Learn how to protect your business from these costly fraud schemes by reading the full article here.

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