What is a Diagnostic Fraud Examination?

A “Diagnostic Fraud Examination” (also called a “Forensic Examination“) is a thorough, comprehensive and off-site examination of a dental practice’s business and computer records to determine whether a former or current employee 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?

A Diagnostic Examination is indicted when:

  • the practice owner has discovered financial misconduct by an employee or contractor.
  • the practice owner has reason to suspect that financial misconduct has occurred.
  • the practice owner requires assurance that financial misconduct has not occurred to:
    • remove uncertainty before the practice owner lists the practice for sale. ,
    • to provide prospective buyers with assurance that the seller’s billing and payment systems are in proper order.

How often do you diagnose embezzlement?

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

Many owners who contact us thinking they have an embezzlement problem when in fact, they do not. In those cases, concerns are often resolved by phone.

How is a Diagnostic Fraud Examination performed?

A Diagnostic Fraud Examination (Forensic Examination) is performed off-site, and in secret. No one, except the practice owner, will know that this work is being performed.

All our work is conducted in accordance with lawful fraud examination techniques and can include examining clinical, accounting, electronic records, meta-data plus other evidence-gathering procedures as are necessary.

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 exam confirms that financial misconduct has occurred, we promptly notify the practice owner to provide our recommendations.

We advise the practice owner with an estimate of the total amounts stolen and when the embezzlement first began.

We provide the practice owner with compelling examples of the schemes used to embezzle. (in most cases, more than one embezzlement scheme is uncovered)

We will deliver our guidance and recommendations to the practice owner so the owner can make informed decisions regarding:

  • terminating employment of the dishonest employee
  • filing a crime insurance claim
  • seeking civil recovery or criminal restitution

Related posts:

Dental FraudBusters FAQ’s
Dental Embezzlement Do’s and Don’ts

Have Questions?
Contact me for confidential consult.
William Hiltz BSc MBA CET