Pub. 4 2015 Issue 9

KBS Security Officer’s By-Word Document all information relevant to the irregularity. Since all embezzle- ments are different, this process will vary every time. Once the documents are in hand, it is time to have a conversation with the suspected employee. Two members of management should be present. At least one should be the same gender as the employee; this helps to prevent false accusations of sexual discrimination. Approach the discussion with an open mind. Be polite and calm. Present the facts along with the documentation and explain your findings. Do not make accusations; there may be a reason- able explanation that you have not considered. If evidence indicates that the em- ployee committed a dishonest act, and the employee cannot provide any reasonable explanation but denies all wrongdoing, it is usually prudent to place them on an imme- diate suspension until the bank has conducted a complete investigation of the matter. If the employee admits any wrong- doing, you should immediately obtain as much information as possible from them regarding the situation. Remember to stay calm and polite. Once the employee has provided as much information as they are willing, obtain from them a written statement containing the same information along with any additional information about any extenuating conditions that may have led them to commit the acts. The information obtained during this meeting may save the bank a great deal of time and expense in its investigation, along with document- ing the bank’s insurance claim. The employment of any person who has admitted to any dishonest act should be terminated immediately. They should be escorted out of the bank and not be allowed to return to their work place to even retrieve personal information. Any personal items should be boxed up and returned to the employee later. THIS IS ARTICLE 7 OF 7 FRAUD IN THE WORKPLACES SERIES How to Handle Employee Dishonesty November 2015 The bankers division of Berkshire Hathaway Homestate Insurance Company G ood internal controls will not prevent all embezzlements, but they should enable the bank to quickly detect abnor- malities that may be fraudulent. When you suspect an employee may be stealing from you, don’t panic or act hastily. The following steps should help guide a bank through the uncertain and difficult process of handling possible employee theft.