Tools for Deterring Embezzlement

Since fraud and embezzlement are major problems in dental practices, it’s nice to know you have a tool to potentially identify check fraud.  Positive Pay is an automated fraud detection service offered by most banks.

Positive Pay matches checks presented for payment to the information you upload to the bank, typically from your QuickBooks file shortly after writing a batch of checks.  The service compares the check number, account number, payee, and dollar amount from the uploaded file to the checks sent to the bank for payment.

If Positive Pay notes a discrepancy, such as a check presented for an amount different from your uploaded file, you are immediately notified.  You then review the suspect check to determine if it is fraudulent, and you instruct the bank whether to pay the check or return it.

The service comes with a cost, but when you consider embezzlement could easily set you back thousands of dollars each month, the fee is most likely worth it.

If you want to further enhance your embezzlement prevention systems, review your monthly bank and credit card statements, looking closely to make sure you understand each and every transaction.  Many mistakes, fraudulent or otherwise, are detected by simply paying attention to your monthly statements.

If you entered a room full of embezzlement victims, they would encourage you to take extra steps to protect yourself.  Talking to your bank about Positive Pay and reviewing your monthly bank and credit card statements are two steps among many to consider.  I encourage you to invest a little extra time each month to make yourself as unattractive as possible to a would-be embezzler.

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