Protecting Freedoms And Futures

A Multigenerational Approach To Protecting Freedoms And Futures

3 things that characterize embezzlement

On Behalf of | Mar 3, 2023 | White Collar Crimes

Embezzlement involves taking funds for oneself that belong to someone else, generally in the setting of a place of employment. It is what people refer to as a white-collar crime, along with things such as corporate fraud and money laundering.

Here are three things to know about embezzlement in Pennsylvania workplaces.

1. It is an intentional act

Sometimes, someone in charge of dealing with a company’s finances makes an error that benefits themselves or one of their coworkers. This is not considered to be embezzlement so long as the person admits to and corrects the error as soon as they discover their mistake. Something that characterizes embezzlement is the intent to take or move funds when they are not theirs to do so.

2. Small businesses overwhelmingly bear the brunt

Many studies show that, for various reasons, embezzlement occurs at small businesses much more often than it does at large businesses. Some reasons for this might include smaller businesses not having as much technology in place to catch potential errors or fraud, or smaller companies having fewer people having multiple roles. When someone performs multiple tasks at a company, there are fewer safeguards in place to hold coworkers accountable.

In addition, smaller businesses tend to make less profit than huge corporations, so anything taken as a result of embezzlement matters more.

3. Punishments depend on amount

The type of punishment that someone charged with embezzlement receives depends on the amount that they misappropriate. Penalties may include fines and jail time.

The more employers know about embezzlement, the better able they are to prevent this crime in the workplace.