Although we have some of the most advanced security measures in society to protect ourselves, nothing is ever certain. Criminals can exploit many weaknesses not initially thought of, leaving you defenceless in your most vulnerable state. This type of crime does not even have to physically harm you; financial crimes against you can be the source of undue concern.
Embezzlement is one such financial crime, which can usually occur against either an individual or company. The act of embezzlement is usually performed very methodically, with the perpetrator leaving little to no traces. With a bit of ingenuity, however, you can properly investigate it.
Below are the following tips on how to investigate embezzlement:
1. Warning Signs of Embezzlement
Look for red flags when you investigate embezzlement. Any sort of crime that is performed systematically will be committed with carefulness in mind. That is why it is important to not directly look for traces of embezzlement in the beginning of your investigation. Instead, seek out red flags that may indicate to you whether or not the white-collar crime is underway.
Missing financial documents, for example, are a clear sign that something suspicious is going on. Don’t forget to also take a look at your bookkeeping records as well. Should there be any discrepancies, you’ll have to record them in your notes. Generally speaking, these red flags aren’t a great sign of things to come.
2. Employment Behaviour
While certain pieces of documentation may provide you with insight into a potential crime, inspect the behaviour of others. Employee behaviour is something that can indicate to you whether or not something suspicious is going on. Embezzlement requires collaborators to be secretive with their approach.
If a colleague is consistently working odd hours at the office, you should make a note of that. On the other hand, they may be working all of the time, with no noticeable time off. Some signs may just be the source of something going on in their lives. However, it is vital to make a note of it nonetheless.
3. Confidentiality
Trying to investigate a potential act of embezzlement can be difficult, especially if you are doing it solo. That is why it is vital to not go around and assume your suspects are automatically guilty. Confronting your colleagues is a last resort; don’t risk your rapport with them by falsely accusing them.
Always keep your investigative tactics confidential, especially as it pertains to who you speak to. You should only reveal your collected information, once it is absolutely necessary to do so. Keep your records safe, and out of view from all other parties!
4. Expert Assistance
One of the most challenging parts about investigating embezzlement is that it may be hard to do so by yourself. As such, hiring corporate investigation services may be helpful. A private investigator, for example, can be called in to fact check various inquiries.
Should this be of interest to you, don’t forget that you’ll be asked to share your collected evidence. Embezzlement can involve thousands of dollars to just go missing overtime. As a result, investigating it by yourself can become discouraging without getting help.
5. Interview Suspects
At some point, you’ll need to take action with your investigation. A good method to undertake is to interview potential suspects. Make sure that you are fair with your line of questioning, and do not let biases seep through. Even after your initial interviews are finished, don’t be afraid to conduct another round to cross-reference certain facts.
6. Taking Action
If you are the employer investigating the misappropriation of funds, you’ll eventually be tasked with taking action. This can range from situation to situation, but it is something that must be done to the guilty party.
For starters, you can fire the actual individual who commits embezzlement. At other times, you can turn them over to law enforcement authorities if need be. The action will be hard, but it must be done!
7. Debrief
All companies that get past an act of embezzlement have to write a report on what happened. The specific investigator should include all pertinent details within the report, and put it away for safekeeping.
8. Review Policies
Embezzlement is an incredibly challenging ordeal to go through, which may leave your business vulnerable. Performing a risk assessment, one that addresses what preventative action must be taken, is vital. That way, you protect your assets from this particular crime moving forward.
Employer to employee trust is of the utmost importance, especially in regards to the handling of various assets. That means that you, as the investigator, must proceed with caution if you suspect an act of embezzlement. You don’t want to risk losing your colleague’s trust after all. Be meticulous, but ensure that you leave no stone unturned!
