Orthotown June 2015 - (Page 22)

practice management // feature A As investigators, one thing we encounter every time we speak to a group of orthodontists is that, in the area of embezzlement, they consistently underestimate the capabilities of their opponents. The most common question asked of us is, "Will this control/procedure/auditing step work?" followed by some procedural change that the questioner intends to implement. Normally, this change is designed to block a specific embezzlement method. For example, one question recently asked in a presentation was whether using a "lockbox" system, where all mail gets delivered to a third party (which then opens the mail and inventories the contents), would prevent embezzlement. This question is an example of denial of opportunity strategies for controlling embezzlement, because its goal is to block a specific embezzlement pathway. While we don't think that strategies of this type are necessarily bad ideas, we do believe that their effectiveness in controlling embezzlement is overestimated. Why do people steal? Let's start by debunking one of the myths about orthodontic office embezzlement. Many orthodontists believe that embezzlement occurs as a result of mistakes in hiring and/or poor background checking. Serial embezzlers (i.e., those who have stolen from other offices before) definitely exist, but they account for less than 15 percent of our investigations. The vast majority of our perpetrators have no criminal record and no adverse work history. However, some pressure has caused this person to begin stealing. 22 JUNE 2015 // orthotown.com by David Harris, MBA, CMA, CFE, and Pat Little, DDS, FAGD, CFE In some cases, that pressure is from financial desperation. Various factors can make someone's financial position unworkable. It could be addiction, divorce or a spouse losing a job. These people, who we label the "needy," steal to preserve the basic needs of their family. We call the second group the "greedy." These thieves tend to be bright, and viewed objectively, are somewhat underemployed in your office. It is common for them to consider themselves (sometimes justifiably) as your intellectual equal, and therefore the perceived income discrepancy between the two of you seems unfair. Of course, in this simplistic comparison, they fail to consider the educational differences and/or sacrifices that you made to achieve your position. Their social circle tends to include people who are better off financially. Money that is stolen is often spent on conspicuous displays of affluence. Whether they are needy or greedy, embezzlers are responding to some powerful pressures. A motivated thief who possesses an intimate knowledge of your procedures and how you think is a truly dangerous opponent, and one who is unlikely to be deterred simply because you have blocked some, but not all, options for stealing. Embezzlement vs. controls Let's revisit the denial of opportunity strategies and see how they might withstand assault from a determined, knowledgeable thief. We should mention that it is our policy not to discuss specific embezzlement methodologies in articles, so as not to provide information that may aid thieves. In order to protect orthodontists, we will confine ourselves http://www.orthotown.com

Table of Contents for the Digital Edition of Orthotown June 2015

Orthotown.com Highlights
Embrace Progress: What’s Your Plan?
Trauma Case
Industry News
Learning, Discovery and Excellence: The Dynamic Adventure of Navigating Residency
Tray For Bonding Mandibular Lingual Retainer Wire
New Products
Poll
Don’t Underestimate the Embezzler
Can a Functional Appliance Grow a Mandible?
Self-Ligating vs. Conventional: Is There a Clear Winner?
They Don’t Really Deserve Straight Teeth
Ad Index

Orthotown June 2015