Pub. 4 2015 Issue 9

All access to the bank building, computer systems and accounts by the former employee should be removed. All appropriate locks, combinations, and computer access credentials should be changed or deactivated. Notify law enforcement and regula- tory agencies of the matter. Review and update internal controls to eliminate any weaknesses that may have been discovered. Notify the bank’s bonding company. To prevent rumors and unjust suspicions, all other employees should be told the basic facts of the matter. They should be reminded that the matter should not be dis- cussed with anyone outside the bank for any reason. Do not make any deals to release the person from liability in exchange for repayment. If the former em- ployee offers a payment, it can and should be accepted as a payment toward restitution, but do not agree to release the employee. There may be unknown additional loss. Complete the investigation of the matter and timely file an insurance claim that includes proof of the loss with complete documentation which proves the loss was the result of the dishonest employee’s acts of embezzlement along with details of the amount of the loss. It is often a very emotional event to learn that a trusted employee or co-worker embezzled from the bank, but acting on these emotions can cause problems later. As difficult as it may be, calmly following a step by step process can help honest bankers recover and move on as painlessly as possible. Brought to you by: Chuck M. Towle and the KBS Editorial Team To help protect your bottom line, call KBS to discuss this article and other loss prevention topics or products (785) 228- 0000 Access more KBS Security Officer’s By-Word’s at: kbsforbanks.com /resources SUBSCRIBE FOR ENHANCED KBS CONTENT: http://tinyurl.com/kbssubscribe Connect with us on social media: twitter.com/kbsforbanks linkedin.com/company/kbsforbanks Visit our new website KBSforBanks.com