{"id":76233,"date":"2024-06-01T00:00:22","date_gmt":"2024-06-01T04:00:22","guid":{"rendered":"https:\/\/todaysveterinarybusiness.com\/?p=76233"},"modified":"2024-05-27T16:46:25","modified_gmt":"2024-05-27T20:46:25","slug":"fraud-practice-smarter-0624","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/fraud-practice-smarter-0624\/","title":{"rendered":"Learn to Diagnose Employee Fraud"},"content":{"rendered":"

Did you know that the oldest U.S. veterinary clinic \u2014 Patterson Dog and Cat Hospital in Detroit \u2014 has been in business since 1844? I sometimes wonder what walking into a 19th-century clinic was like. Did you need an appointment? What did the reception area look like, feel like, smell like? Lastly, how did clients pay for services decades before debit and credit cards? They used cash or bartered.<\/p>\n

Did you also know that a Dayton, Ohio, entrepreneur named James Ritty invented the mechanical cash register in 1879? A bell would ring when a clerk pushed keys showing the transaction amount, alerting everyone, including the manager, that a sale was happening. The register was crucial in minimizing employee theft and embezzlement, right? Not so fast! Whenever companies introduce a financial safeguard, someone will find a way to steal.<\/p>\n

Employee theft isn\u2019t new. The Association of Certified Fraud Examiners estimates that 5% of an organization\u2019s revenue is lost to fraud each year. The association\u2019s 2024 report, available at bit.ly\/4d9XtNJ<\/a>, found that the highest median loss, $141,000, occurred at companies with fewer than 100 employees.<\/p>\n

Many veterinary clinics are small businesses, meaning team member responsibilities often aren\u2019t shared. Instead, particular tasks, especially back-office duties, are often assigned to one person, weakening internal controls. And where an opportunity lies, the chance of fraud rises.<\/p>\n

But let\u2019s be honest. Just because theft or embezzlement opportunities exist doesn\u2019t mean employees will automatically commit crimes. To understand the \u201cwhy\u201d behind employee theft, check out my article Sticky Situations<\/em> at bit.ly\/stealing-TVB<\/a>.<\/p>\n

The Average Perpetrator<\/strong><\/h3>\n

Statistics show that 7 out of 10 times, the perpetrator is a 31- to 45-year-old man with a university degree who held a finance role, was employed by the company for more than 10 years and colluded with another fraudster.<\/p>\n

In the veterinary industry, 8 times out of 10, the perpetrator is a 36- to 45-year-old woman who has worked at the practice for over five years and holds a management position<\/a>.<\/p>\n

That\u2019s not to say your clinic has a problem if either profile describes one of your employees. I\u2019m sharing what the statistics suggest in the hope that clinic owners remain diligent and mindful in looking for red flags.<\/p>\n

Warning Signs<\/strong><\/h3>\n

Here are common indicators that someone might be preying on your assets:<\/p>\n