27Oct

Bookkeeper Embezzles $1.6M from Former Employer Using On-Line Payment System!

Prevent This From Happening to YOU!

Former bookkeeper of a New Jersey based telecommunications company has been charged with embezzling almost $1.6 million from his former employer over a ten year span. According to federal prosecutors, he opened a PayPal account in his employer’s name, moved the money from his employer’s bank account to that PayPal account, then moved the money to a second PayPal account that belonged to his girlfriend before finally transferring the money to his personal bank accounts.

The former telecommunication’s employee is charged with wire fraud, money laundering, aggravated identify theft, and filing false income tax returns. The alleged embezzlement took place between 2005-2015.

Read the full story here.

Prevent This From Happening to YOU!

Be sure to review the organizational structure. Are you giving too much power and authority to one employee? Is there a system of check and balance when it comes to authorization and implementation of transactions and activities?

Make employees aware of the company’s policy on theft as well as the consequences of violating those policies. Let them know the sanctions that will be made when they are apprehended and caught. This will help minimize the risk. They will know how committed the company is in preventing losses due to employee theft.

Perform internal audits quarterly and randomly. Implement an effective internal controls and accounting system. This will help reduce the risk of employee theft.

Make Sure Your Clients Take a Proactive Approach To Protecting Their Business Should a Loss Occur

Make sure your clients have crime insurance. Take the steps to ensure that your clients are covered by calling Berkley Crime.