How to Outsmart a Dental Embezzler: Real Talk from the Front Lines

I recently had the opportunity to sit down with my good friend and longtime colleague, David Harris, on an episode of The High Performing Dental Team podcast. David is a Certified Fraud Examiner and CEO of Prosperident, the largest and longest-standing dental embezzlement investigation firm in the world. In our conversation, he shared powerful dental embezzlement prevention tips every practice owner needs to hear, whether you’re a solo doctor or managing a large team.

Listen to the full episode on Apple Podcasts:

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We dove deep into what makes embezzlement such a sneaky, dangerous issue in dental practices. David pointed out that the majority of thefts happen at the hands of long-term, trusted employees. Why? Because they’re given more access, more responsibilities, and often, more blind trust.

Let’s be honest. Dentists just want to fix teeth. They don’t want to think about team members stealing from them. But turning a blind eye or avoiding the topic won’t protect your practice. It just creates an easy opening for embezzlers.

Start with Smarter Hiring

David dropped a truth bomb that should stop every hiring manager in their tracks: 70 million Americans have a criminal record, and 40 to 60 percent of resumes are embellished or falsified. If you’re not doing background checks and drug testing as part of your pre-employment process, you’re playing financial Russian roulette.

Here are David’s must-do steps during hiring:

• Run a criminal background check
• Require a saliva-based drug test (easy, instant, and office-friendly)
• Check ID. Ask for a government-issued ID plus two other forms with their name
• Call former employers. Never use the phone number listed on the resume. Google the practice and call directly

He even shared a real-world example: an applicant gave a disposable phone to his uncle and had him pretend to be a former employer. That’s how far people will go.

Divide and Conquer: Breaking the Embezzlement Chain

David outlined six daily tasks that make up the “revenue cycle” in your dental practice:

1. Treatment is entered
2. Billing is generated
3. Payments are received
4. Payments are posted
5. The day is balanced
6. Deposits are made

Here’s the key: No one person should handle more than two of these. They also should not handle two tasks in a row. This creates a layer of accountability. If someone wants to steal, they’ll need a partner, and that conversation alone deters most people from trying.

Even in smaller practices, there are ways to follow this system. For example, the doctor can retrieve and open the mail to verify checks or assign balancing to a dental assistant.

Balancing Isn’t Optional

Too many practices are not balancing their day sheets. David and I agree, this is non-negotiable. It’s the most basic financial control you have. Balancing ensures payments in Dentrix match what is deposited in the bank. And doctors, print your own reports. If someone else hands you a report, you’ve opened the door to selective reporting.

David recommends a process called articulation. At month-end, compare your month summary to the stack of daily reports you reviewed. If they don’t match, something happened off the books.

Doctors, Your Software Matters More Than Your Handpiece

Most doctors know their handpiece inside and out. But when it comes to practice management software, many check out. You don’t need to know how to schedule appointments, but you absolutely must know how to run reports and evaluate your collections.

If you’re unsure where to start, that’s exactly what I help practices do. I’ll show you how to pull the right reports and evaluate your systems through the lens of profitability and protection.

If you want to learn more from David, he’s hosting a doctors-only live event on October 18 in Irving, Texas. If you need help navigating Dentrix and tightening up your financial controls, reach out to me.

Let’s protect what you’ve worked so hard to build.