How an Employee Stole $5,000 Right Under Our Noses (ft. David Harris)

In this episode of "Just a Couple of Dentists," we dive into a serious and often overlooked issue in the dental industry: embezzlement. Alex and I share a personal experience from one of our practices, where we discovered a case of embezzlement involving a former employee. The episode begins with a discussion about the importance of dentists taking control of their financial reports and not relying solely on staff to filter information.

We introduce our guest, David Harris, an expert in dental embezzlement and owner of Prosperident, who provides valuable insights into the common tactics used by thieves in dental practices. David explains that embezzlement often occurs gradually, likening it to a dripping tap rather than a broken pipe. He shares alarming statistics, revealing that the average embezzlement case can exceed $100,000, and that many thieves employ multiple methods to steal funds.

As we unpack our specific case, we discuss the red flags that were missed, including suspicious DoorDash transactions that were traced back to the employee's home. David emphasizes the importance of having robust financial controls in place, such as regular reconciliations between practice management software and bank statements. He highlights the dangers of relying on subjective documents and encourages dentists to print their own reports to ensure accuracy.

Throughout the episode, we explore the psychological aspects of embezzlement, noting that successful thieves often present themselves as friendly and indispensable team members. David provides practical advice on how to safeguard practices against theft, including the importance of limiting administrative access in practice management software and regularly changing passwords.

In a lighter moment, Alex shares a personal story about a scam she fell victim to, which serves as a reminder of the various ways professionals can be targeted. David draws parallels between this experience and the manipulation tactics used by embezzlers, highlighting the need for vigilance in both personal and professional finances.

This episode is packed with actionable strategies and insights that every dentist should consider to protect their practice from financial fraud. Whether you're a solo practitioner or part of a larger DSO, the lessons shared here are crucial for maintaining the integrity and security of your dental practice.