446: What Most People Get Wrong About Embezzlement - David Harris - a podcast by ACT Dental

What Most People Get Wrong About Embezzlement

Episode #446 with David Harris

If you think embezzlement can never happen to you, take time to think again! No one is immune, and it’s impossible to prevent. All you can do is make it more challenging for the people who choose to steal. And to help you in that process, Kirk Behrendt brings back David Harris, CEO of Prosperident, to debunk common myths about thieves and embezzlement so you can outsmart them and reduce your chances of theft. Cash isn't the only thing an embezzler will take! To learn ways to protect your practice, listen to Episode 446 of The Best Practices Show!

Main Takeaways:

No dentist is immune to embezzlement.

75% of dentists are stolen from at some point.

Embezzlers may be smarter than you think.

Think beyond cash theft. Thieves will adapt.

Make it challenging to steal from your practice.

Always reach out to an expert for help.

Quotes:

“In 2019, [the American Dental Association] went to [17,000] dentists and they said, ‘Have you been stolen from?’ And I'll give you the good news first. 53% of the respondents said, ‘I don't think so,’ because this question doesn't always lead itself to absolute answers. Of course, the other 47% had been stolen from. So, the ADA asked them a follow-up question, ‘Okay, how many times?’ And now, it got a little bit interesting. 26% — so, about half of those who said they’ve been stolen from — said, ‘Once, as far as I know.’ 11%, twice. 2%, three times. And the one that really made me stand up and take notice was that 8% of the respondents said, ‘Four or more times.’” (3:55—4:44)

“Some things that we don't know here. For example, we don't know how many of the 53% [from the ADA study who] said, ‘I haven't been stolen from, to the best of my knowledge,’ will get victimized in the rest of their careers. And we don't know how many of the other 47% who had been will get stolen from again. We also don't know how many people were stolen from and just didn't realize it, or how many were stolen from and did realize it, and for whatever reason, chose not to disclose that to the ADA.” (5:07—5:37)

“If you start with 100 dentists, probably 75% of them will get stolen from sooner or later.” (5:41—5:46)

“[Embezzlement] is not a crime committed on you by a stranger. It’s a crime committed by somebody who you had a relationship with, you were almost like family to. And they used the trust and the faith that you placed in them and leveraged it into theft. So, it’s a very personal crime. The money is an issue — it has to be. But in a lot of cases, it’s the sense of violation. It’s that thought process where you say, ‘I was at her daughter’s wedding three months ago. And it’s just starting to occur to me how much of that wedding I paid for.’ It’s that, that really hurts.” (7:09—7:52)

“The first thing [dentists get wrong about embezzlement] is, ‘I have immunity because . . .’ And if we had a live audience with us today, there'd be some people sitting like this with their arms folded and their face tight. You could probably even see them bruxing a little bit. And what it all says is, ‘Well, it might be the person to my left, and it might be the person to my right. But it won't be me.’ And then, they have some algorithm that they’ve constructed that puts them in the immune category. For example, ‘My staff have been with me for 20-plus years.’ And every embezzlement has a first time. Sometimes, it’s a newly hired staff member who’s been with you for three months. And sometimes, it’s your office manager of 25 years.” (8:30—9:18)

“We can't control the external pressures that are exerted onto somebody that makes them wake up one morning and say, ‘Today’s the day I'm going to steal.’ And the backstory could be a lot of things.” (9:20—9:31)

“I've seen both sides of it where...

Further episodes of The Best Practices Show with Kirk Behrendt

Further podcasts by ACT Dental

Website of ACT Dental