What is a Diagnostic Fraud Examination?

A “Diagnostic Fraud Examination” (also known as a Forensic Assessment) is a thorough, comprehensive and “secret” examination of your practice’s business and computer records to determine whether a former or current employee at your practice has performed fraudulent or unethical financial transactions.

Diagnostic Fraud Examinations are performed by Hiltz & Associates; the company behind Dental FraudBusters.

When should a Diagnostic Fraud Examination be performed?

Diagnostic Reasons

  • When the practice owner discovers unethical or illegal financial conduct by an employee.
  • When the practice owner has reasonable or probable grounds to suspect that financial misconduct has occurred.

Prophylactic Reasons

  • To “check up” on the financial integrity of the practice and to provide a high level of assurance to the practice owner that financial misconduct is not present.
  • Prior to selling a dental practice; to remove any uncertainty that the Seller may have and to provide prospective Buyers with assurance that the practice’s billing and payment systems are in proper order.

How often do you diagnose employee theft?

More than 90% of our diagnostic fraud examinations result in confirming employee theft; with the remainder comprised of examinations performed for prophylactic purposes.

This statistic is high because of our triage process.

We conduct pre-examination consults with every prospective client to weed out those who contact our firm thinking they have an embezzlement problem, when they do not. In most cases the issue is usually resolved over the phone.

How is a Diagnostic Fraud Examination performed?

A Diagnostic Fraud Examination is performed off-site, and in secret. Only the practice owner and people authorized by the owner will know that an examination is being conducted.

Because the Diagnostic Fraud Examination is performed off-site, the practice owner will be asked to provide the information we need to conduct the examination. We provide clear instructions regarding the information required and if needed, we will help the practice owner gather the information and get it to us.

How long does it take to complete a Diagnostic Fraud Examination?

A Diagnostic Fraud Examination is a “hands-on” and manually intensive process that can take several weeks to a few months to complete; depending on the owner’s situation and existing on-site conditions.

In cases where pre-exisiting* conditions exist to support a high probability that employee theft has occurred; we can often confirm whether financial misconduct has occurred within 24 to 72 hours.

* pre-exisiting conditions are determined by owner interview and are unique to each practice.

What happens when a Diagnostic Fraud Examination confirms employee theft?

When a Diagnostic Fraud Examination confirms that financial misconduct has occurred, we notify the practice owner promptly and provide our recommendations.

We estimate the total amounts that were stolen and when the embezzlement first started. Our examination will determine the methods used to embezzle and provide compelling examples (evidence) of each.

We provide guidance to the practice owner so they can make a decision whether to undertake recovery, file a crime insurance claim, seek civil recovery or criminal restitution.

Client Loyalty and Confidentiality

Some practice owners have expressed concerns to us about their business practices, and that our work may uncover something that will cause their business practices to be questioned.

We want to make this very clear; our loyalty is to you, and our mandate is to protect your interests.

The information shared with us and what we uncover during our work, is confidential and never disclosed to any third party without prior consent.

We do not disclose any information to dental insurers, regulatory bodies, or government agencies unless we are compelled to do so by a court order.

Want to Learn More?
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William Hiltz BSc MBA CET