Case Studies

The accounting clerk in small service business was responsible for payroll and accounts payable. He stole $45,000 by doubling his salary on several of his paychecks.

Unfortunately for this perpetrator, the company’s accountant discovered the theft during her year-end procedures. The accounting clerk was prosecuted and went to prison. Prior to discovery of the scheme, another employee reported some red flags to the business owner: the accounting clerk was cheating on his timecard, and he had inappropriately shared information that was on a confidential network drive.

Lesson: Cheating on Small Things Is a Slippery Slope

When employees cheat on small things, they are likely to look for other ways to cheat. In this case there were at least two yellow flags demonstrating unethical behavior prior to the perpetrator’s theft.

Trust. But verify.