Imagine entering your office, scanning familiar faces—faces you’ve trusted for years, if not decades. These are the people you’ve celebrated milestones with, navigated challenges with, and built your organization with. Now, picture one of those faces betraying you and the entire organization. A chilling thought, isn’t it? Yet, when it comes to fraud, those who are often most trusted are the likeliest suspects.
What’s at Stake?
According to a recent arrest report in Del Mar, two employees embezzled more than $1 million from a real estate company. What’s alarming is the amount and duration—these employees had been with the company for 20 years.
“The two arrested worked for the victim company for more than 20 years and had access to the company’s banking and credit card information. They also had signature authority on the company’s bank accounts.”
The Del Mar case is not isolated; it echoes a pattern where long-tenured employees often become the culprits. It’s a paradox of trust that organizations need to grapple with.
Why Does Tenure Breed Opportunity?
Complacency: Employees who stick around for years tend to become lax in scrutinizing their activities.
Access and Authority: Long-term employees often gain higher levels of access and signature authority, making it easier to bypass controls.
Familiarity Bias: The “he’s-one-of-us” syndrome can blind managers and colleagues to potential red flags.
Implementing a Dual Approach: Fraud and Fall Prevention
- Regular Audits: Audits shouldn’t be treated as special occasions but as part of the organizational culture.
- Technology as Watchdog: Implement AI-based tools that can flag unusual activity irrespective of who is behind it.
- Whistleblower Policies: Encourage a culture where employees feel safe reporting suspicious activities.
- Leadership Training: Train managers to recognize the signs and take unbiased actions.
Rebuilding Trust
Once the trust is broken, rebuilding it is slow and arduous. It involves tightening controls and reevaluating your organization’s cultural landscape.
Do you wonder if your long-term employees could ever deceive your organization? Are you prepared to mitigate the risks that come with the trust paradox? Feel free to reach out for a more in-depth consultation or to engage me for speaking opportunities focusing on ethics, fraud prevention, and more.
Your trust could be your biggest asset or your most significant blind spot. Which one will it be for you?