White-collar crimes such as embezzlement can do serious damage to a business. While embezzlement is a form of stealing, in this case the thief is someone who was in charge of the stolen money or property in the first place. Chron explains that there are many different ways a person could embezzle money, such as overcharging customers.
If you own a business or have a managerial position, you should know that your company has fair prices for goods or services. Unfortunately, an embezzler may take advantage of customers to pocket some extra cash.
How overcharging can lead to embezzlement
An embezzler at a company may be in charge of processing bills and payments. This position gives the thief an opportunity to boost the price of products without the knowledge of workplace superiors. After receiving the payment, the embezzler can hide the extra money while reporting the payment at the usual price, leaving the employer in the dark about what is really going on.
The consequences of overcharging
Excessive pricing may make your business look like it is gouging customers or does not know how to properly price items. Customers may take their business elsewhere, and the reputation of your company could suffer. Some people may even believe that your company is engaging in criminal activity.
Small businesses in particular can get in real trouble because they leave all the accounting power in the hands of one person or they just lack any formal accounting practices. If someone complains to you about a price hike on your products that you are not familiar with, you could have an early sign that something is wrong at your workplace and you might need to consider legal options.