By Michael J. Whitlock, Executive Vice President – Bail Division
Ben Franklin once said, “Trickery and treachery are the practices of fools that have not wits enough to be honest.”
When I was working in a bond office back in the day, specifically in 1982, bail transactions were paid with cash or personal checks. In most cases, bonds were paid upfront and in full. These days, however, customers tend to pay with credit cards, cash apps, or occasionally cash, and in many cases, payment terms are extended.
Recently, one of our agents relayed a concerning story. An employee had been stealing customer payments over an extended period, amounting to many thousands of dollars. This employee was trusted and relied upon to manage many responsibilities in the office, including payment collections. Suspecting something was wrong, the agent launched an investigation. It was discovered that the employee had instructed clients to send payments to a personal cash app, and the funds were never deposited into the bonding company’s account. Although the employee will be prosecuted, there is little chance the agent will recover all the stolen money. Lesson learned.
Unfortunately, this is not the first time I’ve heard this tale of woe. More often than not, the culprit is a long-time “trusted” employee. In any business, especially in retail, the motto should be “careful who you trust.”
To safeguard your agency from internal fraud and reinforce trust with clients, consider the following measures:
Implement Strict Payment Procedures: Clearly define and enforce acceptable payment methods (e.g., company accounts only) and ensure all clients are aware of these procedures. Prohibit employees from accepting payments through personal apps or accounts.
Monitor Transactions Regularly: Establish an oversight mechanism where all transactions, including digital payments, are monitored and cross-verified by management or a third party. Regular audits can help detect irregularities early.
Use Secure, Centralized Payment Platforms: Ensure all payments are processed through a secure, centralized platform controlled by the company. This reduces the risk of payments being funneled into unauthorized accounts.
Provide Clear Reporting Channels for Clients: Encourage clients to report if they are directed to make payments through unapproved methods. Make it easy for them to verify payment instructions, and provide a hotline or online form for anonymous reporting.
Enforce Consequences and Improve Employee Training: Have clear policies and consequences for theft, and regularly train employees on the ethical handling of payments. Make it clear that misusing company resources will result in immediate termination and legal consequences.
By taking these precautions, you can protect your business from potential fraud and foster a culture of accountability and trust within your team.