Study Pegs Embezzler Profile

According to a 2011 study from Marquet, an investigative and litigation support firm, here is the typical embezzler profile of employees from a cross section of private and public organizations:

Past Criminal Background:  Almost all embezzlers had no prior criminal background.

Position:  Over 70% worked in accounting, finance, or bookkeeping departments.

Duration Of Theft:  The average duration of theft was about five years.

Technique:  The most common embezzlement techniques involved the use of forged or unauthorized checks.

Motivation:  Paying off gambling debts was a leading cause of 20%, but most just wanted to live a more lavish lifestyle.

Gender:  64% were women.

Average Age Embezzlement Began:  Age 42.

Embezzlement succeeds so often due to inadequate financial controls where there is no segregation of duties.

See prior blog post on Crime Insurance needs for a tech company: Click here

Here are the top three risk management controls to prevent embezzlement:

1. Require a countersignature on all checks or checks over a certain amount.
2. Require bank statement reconciliation by someone who is not authorized to deposit or withdraw.
3. If you allow the use of credit or debit cards, make sure that the monthly statements are reviewed by someone who is not authorized to use the card.

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Study Pegs Embezzler Profile
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Categories: Crime

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