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What are signs that an employee is embezzling?

On Behalf of | Jun 26, 2019 | Uncategorized

As an employer, you must be meticulous in your hiring. If you bring on the wrong person, you may have someone on your team who embezzles company funds. Your employees should be productive, lawful and beneficial to your business. Anyone you entrust to manage or monitor funds should be reliable. 

But, of course, not all employee theft is obvious. Sometimes, even a seemingly trustworthy employee can commit embezzlement. Here are some warning signs that one of your employees may be embezzling money.

Never on vacation

You may think it is good to have an employee who never takes a break, but her or his reasoning can be something sinister. Some types of embezzlement are only easy to hide if the thief is present. If the embezzler leaves, someone may detect the crime. A worker who refuses to take a vacation may have something to hide. 

Constantly working overtime

Again, you may love when a worker stays late to accomplish more work. But some employees choose to work overtime or request to take work home so they can avoid detection by other co-workers. It is easier to commit embezzlement after hours when no one is around to see it.

Significant increase in wealth

Just because an employee becomes more successful does not necessarily indicate embezzlement, but it may be a red flag. If a worker suddenly has unexplained upgrades like cars, homes and apparel, it may because he or she is using company money to fund a lavish standard of living. 

Financial desperation

If you have an employee in financial trouble, he or she may have a greater incentive to take money from your business. A person facing financial pressure from creditors, family and friends can result in desperate measures to make ends meet, including committing fraud. 

Either by themselves or together, none of these signs necessarily mean someone is embezzling. Either way, it is wise to closely monitor your workers and funds.