With internal auditing procedures in place, staff to enforce them, a Supervisory Committee to enforce them, and state and federal auditors to ensure the credit union’s general ledgers (among other things) are in order, embezzlement is still very real, and more common than most would like to admit.
Mentioning embezzlement is akin to blurting out a four letter word in most credit unions, because one misspoken word may inadvertently cause the rank and file to believe they are unfairly being targeted, thereby creating trust issues. However, it should be included as part of a larger discussion regarding adherence to internal procedures, which is (hopefully) happening on a regular basis.
A good discussion a few times each year may help deter a desperate employee (with any title, including CEO) from making a life altering decision, and may even expose any potential loopholes that staff has discovered in their daily routines. [Read story at Christian Mullins].