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As a business owner, one of your worst days is when you discover that a trusted employee has engaged in fraudulent activities such as embezzlement. You might assume that contacting law enforcement could resolve the situation, but relying solely on the police is problematic for several reasons:
1. Police resources are stretched: Law enforcement prioritizes violent crime and high-dollar fraud affecting large numbers of victims. A $5,000–$20,000 employee theft, while devastating to a small business, may be considered a low priority case and receive minimal investigative time.
2. Evidence gathering is your responsibility: Police expect you to present well-organized, credible evidence – not suspicions alone. Without a clear, documented case (bank statements, invoices, timelines, witness statements), they may close it quickly or decline to pursue charges.
3. Complex fraud requires specialized skills: Fraud cases often involve forensic accounting, digital forensics, and interview techniques that go beyond standard police training. Certified Fraud Examiners such as Dragonfly Forensics can trace transactions, identify control weaknesses, and prepare evidence that will stand up in court.
4. Civil recovery vs. criminal prosecution: Police work on criminal prosecution — they don’t help you recover lost money. Dragonfly forensics can also assist in civil recovery (lawsuits, insurance claims) while building a criminal case if warranted.
5. Timeliness: Small business fraud cases sometimes take months before police action begins, by which time records may be destroyed, digital evidence may be lost, and suspects may disappear or hide assets
If employee fraud is discovered, in addition to contacting law enforcement, companies should
–Engage a firm such as Dragonfly Forensics to investigate quickly, gather admissible evidence, and document the case.
–Present the evidence to police along with a formal complaint.
–Pursue civil action or insurance claims in parallel with criminal proceedings.
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As a business owner, one of your worst days is when you discover that a trusted employee has engaged in fraudulent activities such as embezzlement. You might assume that contacting law enforcement could resolve the situation, but relying solely on the police is problematic for several reasons:
1. Police resources are stretched: Law enforcement prioritizes violent crime and high-dollar fraud affecting large numbers of victims. A $5,000–$20,000 employee theft, while devastating to a small business, may be considered a low priority case and receive minimal investigative time.
2. Evidence gathering is your responsibility: Police expect you to present well-organized, credible evidence – not suspicions alone. Without a clear, documented case (bank statements, invoices, timelines, witness statements), they may close it quickly or decline to pursue charges.
3. Complex fraud requires specialized skills: Fraud cases often involve forensic accounting, digital forensics, and interview techniques that go beyond standard police training. Certified Fraud Examiners such as Dragonfly Forensics can trace transactions, identify control weaknesses, and prepare evidence that will stand up in court.
4. Civil recovery vs. criminal prosecution: Police work on criminal prosecution — they don’t help you recover lost money. Dragonfly forensics can also assist in civil recovery (lawsuits, insurance claims) while building a criminal case if warranted.
5. Timeliness: Small business fraud cases sometimes take months before police action begins, by which time records may be destroyed, digital evidence may be lost, and suspects may disappear or hide assets
If employee fraud is discovered, in addition to contacting law enforcement, companies should
–Engage a firm such as Dragonfly Forensics to investigate quickly, gather admissible evidence, and document the case.
–Present the evidence to police along with a formal complaint.
–Pursue civil action or insurance claims in parallel with criminal proceedings.
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