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Luckily, their bookkeeper routinely made a weekly copy of the Clients & Profits database and took it off site.
“If I were to say that one thing saved the business,” Dave says, “it was the fact that a copy of the C&P data was on a Zip disk outside the agency.”
In the day-and-a-half that they were down, fellow agencies came to their aid, offering loaner computers and office space. “Everyone has been great,” Dave says.
They forged ahead for 3 days, getting out whatever work they could until they could reinstall the C&P backup. “Work was tough for those few days without Clients & Profits,” Dave says. “We didn’t realize how much we need it.”

When employees create havoc

Employees (either current or former) can also make a mess of things. From malicious treatment of files and equipment to inadvertent stupidity, your staff can do serious damage to your agency in seconds.
Did that cranky AE swipe a copy of your client list? Does that intern really know how to enter A/P invoices—or is she just faking it?
Don’t forget about the technology junkie who stays late now and then; he could be using your shop’s equipment for illegal activities. Or maybe he’s just moving a few client files around—and accidentally deletes the final version. Whoops. How do you keep these dangers at bay? Besides using old fashioned vigilance, use technology. Install computer monitoring software that tracks web sites visited, keystrokes, and other user information. (You might be surprised at what you learn.) Consider setting up timed lock-outs and passwords on terminals, and limit internet access. You can also use Clients & Profits access privileges.
Stopping sticky fingers
Embezzlement happens, and probably more often that you know.

(only about 120 in 500 business actually catch embezzlers). And, the Association of Certified Fraud Examiners says, an embezzling worker swipes about $127,000 before getting caught.
Embezzlement schemes to watch out for fall into four categories:
1) Billing - invoices for fictitious goods, inflated charges, or personal purchases;
2) Payroll - imaginary employees or unauthorized raises or bonuses are paid;
3) Expense reimbursements - phony or inflated expenses are turned in;

4) Check fraud - forged or altered checks are cashed, or checks are stolen.
And the cost of embezzlement goes beyond the loss of cash. Once the scheme is exposed, the trickle-down damage can cost top talent, clients, reputation, fiscal solvency, and company morale.

Who does it, and why

Unfortunately, the people most likely to hurt your business look like ideal employees. In a report that evaluated hundreds of cases over more than 10 years, 75% of the criminals were men, and most were first-timers with no criminal record. They were young, talented, and intellectual. By education, 42% were high school graduates; 45%, college graduates, and 13% had completed postgraduate work. But the common thread between all of them were motivation, opportunity, and the ability to rationalize their actions.
As a manager, you can’t do much about what motivates employees to commit a crime. But you can interrupt opportunity and derail rationalization by creating a corporate culture that values ethical behavior and builds mutual respect. (For tips on spotting and stopping criminal behavior, see the article on page 7, “Stop Thieves In Their Tracks.”)

Planning for the best

No matter how many precautions you take, bad things do happen. But if you plan to make the best of it when it inevitably happens, you’ll be in the fast lane to recovery.
First, make a list of threats, rank them from most to least likely, then start building your recovery strategy. Include things like off-site back-ups, human resource policies, and, above all, vigilance.
Sounds like a lot of work? Truthfully, it is. But Clients & Profits can help, and you’ll find tips throughout this newsletter. From access privileges to reports, there are dozens of helpful tools right at your fngertips.
It’s easier to believe that you’re immune from disaster (wouldn’t that be nice?!). Unfortunately, the potential is as real as the paper you’re holding. So, now that you’re thinking about it, while everything is buttoned-up and secure, start planning. You’ll never be sorry you did.