This professional reputation is based upon trust and confidence, and the appearance of safety and soundness developed over time. One of the fastest ways to lose a professional reputation is to become the victim of an embezzlement. Every institution has the duty and the obligation to investigate suspected crimes, and not just crimes in which the institution is the primary victim. Your institution should also investigate those suspected crimes where, even though the institution suffered no direct loss, it was used as a vehicle to commit a crime against a customer. Embezzlement is the most popular financial crime in the nation, and is the predominant factor in the failure of all types of businesses.
Embezzlement is often the most misunderstood and complicated crime to discover, or to investigate.
Embezzlement, or defalcation, is defined as the intentional misuse or misappropriation of funds or property entrusted to an employee. All embezzlements share the same three common elements, regardless of the actual method used to commit the crime. Embezzlements are generally both ego and habit crimes, and are rhythmic, predictable and cyclic. Embezzlers rationalize their behavior to conform with their own morals and ethics. Embezzlers realize that their actions will ultimately hurt people around them, and they just don't care.