Focus On What You Can Control: Detection vs. Prevention
T
his month’s article rounds out a series on embezzlement and its impact on the dental
community. Previous columns revealed how endemic this crime is and identified typical behaviors that thieves exhibit—behaviors you may be mistaking for those of a trusted, dedicated employee! I conclude this series with some advice about what to do if you suspect fraud or embezzlement in your practice and tips on minimiz- ing the impact.
There are some basic things you can do to try to prevent potential employee risks from en- tering your practice in the first place. Check- ing an applicant’s references and criminal background prior to hire should be standard procedure. However, in most cases, the po- tential embezzler already is on staff and has been working for you for eight or more years. They probably had a clean employment history when you hired them. Remember, theft starts small. What may have begun as a one-time incident of ‘borrowing’ becomes much more intentional over time due to the employee’s own greed or desperation.
Because embezzlement is an intentional act rather than a crime of opportunity, it is carefully executed with full awareness of the controls you have in place. While managing passwords, monitoring audit trail reports, reviewing day sheets and deposits daily, and limiting access to your accounting system are good practices to employ, they only will help you detect embezzlement earlier, not prevent it from happening altogether. There are many ways for someone to steal from your practice, and those who are intent on doing so will modify their approach to fit their
20 focus | SEP/OCT 2021 | ISSUE 5
publicity that prosecuting could have on their practice. Some even feel bad for the employee! In my experience, many dentists simply terminate the employee, fight the unemployment claim and (if possible) work out a repayment plan. This may be the path of least resistance, but it is not without consequences.
situation. However, the behavioral traits of embezzlers are remarkably consistent. So, keying in on the profile I outlined in a prior column may prove to be the most painless and reliable method for detection.
If you do suspect fraud in your practice, do not investigate on your own. Tipping off a guilty employee is the worst thing you can do. If they think you are on to them, they may begin to destroy evidence. In one extreme case, an employee burned down the office in an effort to cover their tracks! Your best bet is to contact someone who is skilled in this area. If the investigation can’t be conducted covertly, then I recommend sus- pending the suspected employee while the investigation proceeds. You need to cut off any access they may have to files, data, email, carrier websites, bank accounts, software systems, etc., so an expert can gather all the facts without evidence being tampered with or destroyed in the process.
If your suspicions are confirmed after a thor- ough investigation, you should terminate the employee and then determine whether you want to prosecute. Surprisingly only about 20 percent of dentists choose to pursue legal recourse. Most are afraid of the negative
From a financial perspective, failure to prosecute can reduce the likelihood of monetary recovery. While most practices have insurance policies that cover theft, these policies typically cap the payout and require a police report to be submitted with all claims. From an HR per- spective, failure to report also makes it more likely that a new employer will unknowingly hire your thief because their actions will not be made a matter of public record.
Regardless of your choice, the pain, anger and embarrassment of a situation like this takes its toll. Remember, you are not alone. Embezzlement is the result of greed and/or desperation and has nothing to do with the way you run your practice. Despite your best efforts, you can’t completely prevent it. What you can do is increase your awareness of this issue and monitor behavior in your own practice to detect potential risks early. Unfor- tunately, that will prove difficult if the dental community continues to keep embezzlement a secret. f
Jodi Schafer is owner of Human Resource Management Services. To learn more about her and services available, visit workwithhrm.com. Want to easily access the Focus three-part embezzlement series? Download the PDF set of articles at bit.ly/mda-embezzle.
