Fraud in Dental Offices and Small Businesses — A Southern California Reality
- Michael Blevins
- Sep 5
- 2 min read
By Michael Blevins, CFE — Blevins Associates Consulting
Fraud Isn’t “Somewhere Else” - It’s Right Here in Southern California
When most business owners think about fraud, they picture billion-dollar scandals splashed across national headlines. But the truth is, fraud happens right here in our own communities. In fact, recent cases across Southern California have shown just how vulnerable everyday businesses are — including dental practices, law firms, nonprofits, and even government offices.
For a small or mid-sized business, one dishonest employee or one weak control can mean the difference between staying profitable and shutting the doors.
Why Dental Offices Are at Risk
Dental practices are particularly attractive targets for embezzlement and occupational fraud because of how their financial processes are structured:
Patient payments are often collected at the front desk, with one staff member handling cash, checks, and credit cards.
Refunds and adjustments are sometimes processed without adequate oversight.
Inventory items (like implants or whitening products) can be misused or siphoned off.
Billing and scheduling software can be manipulated if no one reviews exception reports.
Without regular bank reconciliations and clear separation of duties, small amounts can be skimmed over months or years — adding up to six-figure losses.
The Same Red Flags Apply to Other Small Businesses
While dental offices are a clear example, the same red flags show up in law firms, medical practices, distributors, nonprofits, and professional service firms across Southern California:
One person controls receipts, deposits, and reconciliations.
No one reviews bank or trust accounts monthly.
Vendor changes or invoices aren’t double-checked.
Staff never take vacations or rotate duties.
Fraud doesn’t discriminate by industry - it looks for opportunity.
A Recent Example
In one California dental office, an employee embezzled more than $200,000 over several years by taking small amounts from patient payments. Because there were no bank reconciliations and no separation of duties, the theft went undetected.
We covered this story in our latest Fraud Friday video, which you can watch here:
What Business Owners Can Do Today
Preventing fraud doesn’t require big budgets or complicated systems. The most effective safeguards are straightforward:
Reconcile all accounts monthly, reviewed by someone independent.
Separate duties so no single person controls an entire financial process.
Require dual approval for refunds, voids, and vendor changes.
Spot-check reports and encourage staff to take vacations.
Ready to Get Ahead of Fraud?
We’ve created a free tool to help you start: the Fraud Prevention Checklist. It takes just a few minutes to walk through but can highlight where your business might be vulnerable.
If you’re in Southern California and want a hands-on Fraud Risk Assessment or a CTAPP-readiness review for your law firm, reach out. We’re local, we understand the unique risks facing small businesses here, and we can be on-site without the added expense of air travel.
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