Federal prosecutors say a former account executive has been charged with the embezzlement of $3 million from a New Jersey based company.
According to prosecutors, the former account executive charged large amounts of personal expenses for both herself and her family on the company’s corporate credit cards, one of which was issued to another employee at the company. The thefts occurred between 2011 and 2018.
The 49 year old was formally a senior accountant executive, accounting manager and senior financial shared services manager for the undisclosed company. She faces several decades in prison if convicted on all charges.
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Prevent This From Happening To YOU!
The best defenses against employee fraud include solid internal procedures/controls and training your team members to recognize the signs of suspicious activity that may be occurring within your organization. Below are a few techniques to help with the prevention of employee fraud:
- Internal Controls. Strong internal controls reduce the opportunity to commit fraud and serve as a deterrent.
- Review and approval – segregate duties with respect to financial transactions
- Access Controls – limit employee access to systems and information to necessary users
- Mandatory vacation
- Positive Pay
- Employee Training. Periodic training on code of conduct, employee responsibilities, and the company whistleblower process deters fraud and educates employees on how to report suspicious activity.
- Internal Audit. Performing regular assessments of key processes, risk management, and high-risk areas allows the organization to continuously improve and enhance controls to minimize risk on an ongoing basis.
- Policies and Procedures. Clearly defined policies and procedures are critical to preventing and deterring fraud.
- Employee Evaluations. Performing regular assessments of employee performance, job satisfaction and overall well-being provides useful insight to identifying potential fraud perpetrators.
Click here for more information on these Fraud Prevention Techniques.
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 one of the Berkley Crime team members listed below.
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|Financial Institution Product Leader|
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