Detecting Embezzlement: Warning Signs Your Business Shouldn’t Ignore

Embezzlement, the act of wrongfully taking or misappropriating funds entrusted to one’s care, can be a silent yet devastating blow to any organization. It is often the work of trusted employees, making it difficult to detect until the damage is already done. However, there are certain signs and red flags that, if noticed early, can help prevent this financial crime.

We’ll outline some warning signs of embezzlement that you shouldn’t ignore. By recognizing these warning signs, you can better safeguard your company’s finances and ensure the integrity of its operations. Be vigilant, for the cost of overlooking these signs could be far greater than ever imagined.

Quick Definition: What Is Embezzlement?

Embezzlement is a type of financial fraud that occurs when a person who is entrusted with the handling or management of another’s money or property dishonestly appropriates it for their own use. This typically involves a breach of trust and is considered a white-collar crime.

In the context of a company or organization, embezzlement can happen when an employee, often someone with access to company funds such as an accountant or financial manager, starts to divert some of those funds into their personal account. It can be a small…