Security & Risk Management Seminar

Embezzlement For Investigators (Part 1): When Everyone Lies, Cheats & Steals

Presentation Abstract

Embezzlement has become the nation’s favorite financial crime -- and losses attributed to embezzlement are greater than those from all other financial crimes combined. Embezzlement is often the most complicated crime to discover -- or to investigate. Embezzlement is both a "property" and a "people" crime -- it's not just a document or technological crime. Embezzlement is the intentional misuse or misappropriation of funds or property entrusted to an employee -- or some other person who has power, control, trust or authority over money or property.

Embezzlement isn't just a banking crime, either. Embezzlement is often involved with the institution's clients -- conservatorships and trusts, home health care workers, retail stores, restaurants, insurance, companies, auto dealerships -- just about any industry you can think of. Law enforcement officers know that -- if they commit their crimes often enough -- serial killers, pedophiles, rapists and burglars all settle upon a distinct pattern of behavior. This behavior is the "M.O." -- the method of operation that works best for them. Embezzlers are among the most habitual of all offenders -- and they either choose a distinct method of operation or they must adhere to a business rhythm that is beyond their control.

Understanding the crime of embezzlement is critical to every investigator. That's right -- every investigator. To plan any investigative strategy, you have to understand the unique "people, places and things" involved so that you can identify potential witnesses and suspects, and know where to look for evidence. Embezzlement crimes usually contain an abundant evidence trail that most other crimes do not. But you have to know where to look and what you're actually looking for. While this presentation isn't so much about conducting a financial crime investigation, your participation will help you to plan and execute a professional one. Embezzlement (Part 2): Conducting Financial Crime Investigations addresses the financial crime investigative process.

The principle of cause and effect applies to the relationship between a change in some aspect of a person’s life -- and an accompanying change in that person’s behavior. Embezzlement is a crime that involves:

l        Trust

l        Ego

l        Rationalization

l        Power

l        Greed

l        Rhythm

l        Habits

l        Patterns

l        Predictors

This presentation provides a basic methodology and appropriate techniques for identifying potential -- and practicing -- embezzlers, and it's appropriate for both Security Officers and private/contract security personnel. Useful for pre-employment screening, audit reviews and for conducting internal investigations, these techniques focus upon the steps that an investigator may take to identify these crimes and the offenders.

Presentation Topics

l        Anyone Can Become An Embezzler

l        Occupational Fraud Statistics

l        Organizational Structure & Functions

l        Identifying Offenders

l        Motives For Committing Embezzlement

l        The Embezzler's Characteristics

l        The Embezzler's Behavior

l        The Differences Between Men & Women Embezzlers

Presentation Objectives

This presentation is designed to help you:

l        Understand why embezzlement has become the nation's favorite financial crime

l        Show the proven links between an organization's structure and its vulnerability to loss -- and the critical areas of risk

l        Craft an alliance between the Security, Audit and Human Resources functions to work together to resolve embezzlement issues

l        Demonstrate who embezzles, how much they steal -- and why -- within your own organization

l        Learn what motivates an embezzler, where they look for opportunities -- and why this is such a rhythmic, cyclical and predictable crime

l        Chart a person's characteristics and a person's habits to identify potential and practicing embezzlers

l        Understand what women embezzlers do that is different than what men do who embezzle

Presentation Audience

l        Security Officers

l        Private/contract security investigators

l        Auditors

l        Human Resources Managers

Presentation Tools

l        Workbook text

Last updated on May 26, 2009