Small Business Survival Is Imperiled by Employee Embezzlement

By Rich Bond

A 47-year-old veteran-owned family business in Tulsa, Oklahoma, found out that one of their trusted employees, whom they treated like family, embezzled $430,000.

 

The court release – https://www.justice.gov/usao-ndok/pr/woman-sentenced-embezzling-429732-her-small-business-employer – said the woman had used the money to pay her gambling debts and showed no remorse.

 

Businesses, large or small, public or private, need to be aware that they can be taken advantage of – if safeguards are not in place.

 

Business owners need to work closely with their finance people to set up the controls that can protect the business. But only 37% of small companies have such controls.

 

The amount of fraud, including embezzlement, has increased significantly in recent years with thousands of businesses affected.  The losses are staggering. Businesses with fewer than 100 employees suffered a median loss of $200,000 in 2018.

 

Make sure your company doesn’t become a statistic. Let’s talk about how your finance person can put in the necessary controls.

 

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