Embezzlement remains a pervasive issue in the dental industry, impacting a significant majority of practitioners during their careers. The financial losses can be severe, but with the right systems and vigilance, these risks can be mitigated. David Harris, founder and CEO of Prosperident, the leading dental embezzlement investigation firm in the US, has spent over three decades helping dental professionals identify and prevent theft. In an exclusive interview, Harris offers expert advice on safeguarding practices from internal fraud.
The Journey to Combating Dental Embezzlement
David Harris’s career began unexpectedly in 1989 when a dentist friend sought help in uncovering theft. Drawing on his investigative background and understanding of criminal behavior, Harris solved the case swiftly. A coincidental encounter with the same culprit at his own dentist’s office propelled him into a lifelong mission to combat embezzlement. Today, Prosperident boasts a team of 25 specialists conducting hundreds of investigations annually.
“I didn’t plan this career, but solving cases and protecting practices has been incredibly rewarding,” Harris reflects.
The Scope of the Problem
Studies suggest that nearly half of all dentists have experienced embezzlement, with estimates rising to 70% over the span of a career. The average amount stolen exceeds $100,000. Warning signs include financial discrepancies, such as mismatches between bank deposits and practice management software, and behavioral red flags, like employees avoiding vacations or working after hours.
Understanding the Motivation
Harris categorizes embezzlers into two groups:
Needy thieves, driven by desperation due to personal crises like medical bills or addiction, who often feel remorseful.
Greedy thieves, who rationalize their actions as deserved compensation, frequently spending on luxury items and showing little regret.
Common Mistakes by Practice Owners
Harris identifies key errors that enable theft:
Over-concentration of tasks: Allowing one or two employees to manage all financial responsibilities creates opportunities for fraud.
Lack of oversight: Confusing delegation with abdication leads to unchecked vulnerabilities. Dentists must maintain accountability, regularly reviewing tasks and ensuring proper controls.
Proactive Measures to Prevent Embezzlement
Thorough hiring processes: Conduct criminal background checks, reference checks, and drug testing.
Daily financial reviews: Practice owners should personally verify daily reports and print them independently.
Monthly financial reconciliation: Compare daily and monthly summaries to identify discrepancies and ensure all entries are legitimate.
Bank deposit verification: Confirm that practice software records align with bank deposits, excluding non-revenue transactions.
The Role of Practice Management Software
Most dental management systems have built-in security features, but they are often underutilized. Harris recommends:
- Enforcing regular password updates.
- Restricting administrator rights to practice owners.
- Reviewing and optimizing software settings for better protection.
When Embezzlement Is Suspected
“If you suspect theft, don’t alert your team,” warns Harris. Misplaced suspicions can harm trust, while confirmed thieves may act defensively, creating further risks. Instead, seek help from specialists like Prosperident, who have the expertise to handle such sensitive matters discreetly and effectively.
Embezzlement can devastate dental practices, but with diligent hiring, robust systems, and ongoing oversight, practitioners can significantly reduce their risk. Harris emphasizes that vigilance and accountability are key to maintaining financial security and trust within a practice.
“Protecting your practice isn’t just about safeguarding finances—it’s about preserving the integrity and future of your business,” he concludes.
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