In March of this year, two women were sentenced for embezzling $1.6 million from a company where one of the women worked.   The mail fraud scheme started in 2003 and the other women got involved in 2008.  The really sad part of this story is that the women working for the company that was defrauded had told supervisors that there systems in place were not adequate to detect or stop theft or fraud.  When the company did nothing about it, she started embezzling from the company.

The two used client requests to generate false documents and then used the documents to process checks, which the non employee would cash and then split the money.  We can think of no scenario where this would be able to happen.  Even the most trusted employees should have regular background checks done.  Audits from outside firms should happen on a regular basis.  Employees who handle large amounts of money and have control of checkbooks should have to take periodic vacations, or breaks from those tasks so others can audit what is happening.  You can read more about this at Hartford helps.  With the way that money can move electronically, it does not take very long for a large amount to disappear.  Make sure that does not happen to your company.  Take precautions to safeguard yourself and your organization.  Call us today to learn more about your business risks and how we can protect and safeguard your business with a wide variety of coverage’s.

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