Keep an Eye Out for Embezzlement

It’s estimated that businesses lose five percent of their annual revenue to fraud.

With the rise of embezzlement type office crimes, we are again urging our clients to take precautions to avoid problems.  First, owners should be responsible for receiving and opening bank statements. The bank statements should be mailed to the owner’s personal residence as opposed to the business address.  Second, owners should review canceled checks and verify payees, amounts, endorsements, signatures, etc.  Third, we advise reviewing your coverage for employee theft with your insurance provider.

In the event you discover a forged check, New Jersey law allows an injured party to attempt to collect the resulting loss from the financial institution up to one year after the date the corresponding bank statement was mailed. 
 
The regulations apply to the following:

• Forged maker
• Forged endorser
• Dual forgery—maker and endorser

 
If you would like additional information, please call our office.