Attention non-profits – who is likely to steal from you?

Studies upon studies have attempted to identify a description of the candidates likely to embezzle your organization’s funds. Now here’s a story that finally nails it down.

The Chronicle of Philanthropy, April 3, 2008.

“Most Cases of Charity Fraud Could Be Prevented, Study Finds”

Citing the Association of Fraud Examiner’s 2004 fraud survey, the article states the typical non-profit fraud case involves a female who worked for the organization for at least three years and earned less than $50,000 a year, or by a male at the manager or executive level who earned between $100,000 to $149,000 per year.

Is there anyone in your organization that matches either description?

I have personally resolved so many types of fraud and embezzlement, and based on my own experience I have identified a better, more useful description to really help business owners, non-profit management and all employers.

The majority of embezzlements are committed by… the most trusted employee. The employee you would least suspect, the employee who handles everything because they are so trusted. The employee who is like family to you and the company, the one who you would seek to find any other explanation because it just couldn’t be theft or embezzlement. At least not involving that person, anyway. You know the one I am talking about.

Find that person in your organization or business, and statistically you have your embezzler.

I spoke with two victim organizations this week alone, and in both cases my description matches their employee embezzler to a “t”. A recent embezzlement at a local law firm in Connecticut where the paralegal stole $1.7 million – how did they describe her – you guessed it – the very same description.