Employee Theft

What is embezzlement?

Definition: Unlawful misappropriation for personal use of money, property, or some other thing of value that has been entrusted to an offenders care, custody, or control.

Historically in Ireland, embezzlement was covered by the Larceny Act 1861 and this is now covered by the Criminal Justice (Theft and Fraud Offences) Act, 2001. Plain English, the breach of a trust given.

The embezzler is usually in some fiduciary (relationship of trust) relationship with the victim, either as an employee, guardian, or trustee. Typically, these are employees who steal property or money from a company.

Historical Profile of Embezzler:

  • Staff member working on tills.
  • Manager in charge of finances.
  • Warehouse operative in charge of loading and deliveries.

In the early days of computer embezzlement, an embezzler would use a computer to aid the theft, rather than as the sole tool. In other words, an employee would use the computer to cook the books or to ring in false invoices. Employees could use the computerized tills to skim off money by ringing the price in as higher and keeping the difference. Modern Computer Embezzlement can be defined as an employee using legitimate permission to access the computer for an illegal cause, i.e. to steal money or property from the company.

Modern Embezzlement Methods:

  • Salami Technique: Slices off small parts of a transaction and diverts it to a special account.
  • Rounding down: Transactions are rounded down and the remainders are put into another account.
  • Fake Raise: The authorization of raises to an individual by virtue of using a stolen password.
  • Parking: Putting fund transfers into created accounts for short periods of time in order to accrue interest. Funds are then transferred to their real account.

Embezzlement in the news

The father who strangled his two children then tried to kill himself has been described as the perfect devoted dad by shocked neighbours in the Carlow village of Ballinkillen. But it also emerged on Tuesday that Sanjeev Chada has been linked with a ‚€50,000 embezzlement case in Carlow and a Garda investigation is about to begin.

If you are affected by theft by employees, or if you are worried about suspect behaviour regarding staff or any transactions either with computerised tills or stock, then call City Investigations for an in-depth covert investigation (in compliance with all legislation on data protection investigaitons) and either put your mind at rest, or gain the evidence you need to dismiss the employee or ring the Gardai.