The #1 Financial Threat to Your Dental Practice (And How to Stop It!)

The #1 Financial Threat to Your Dental Practice (And How to Stop It!) with David Harris

In this episode of Dental Office Rescue, Linda Kane sits down with David Harris, CEO of Prosperident and one of the leading experts in dental fraud investigation. Together, they dissect the warning signs of embezzlement, the most common mistakes dentists make, and the essential steps to protect your practice from financial fraud.

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How Big of a Problem is Embezzlement in Dentistry?

Embezzlement is far more common in dental practices than most doctors realize. David shares that over 70% of dentists will experience embezzlement at some point in their careers.

"Dentists are incredibly trusting people, and unfortunately, that trust is often misplaced," David explains. "Most embezzlers are long-term employees who have gained a doctor’s confidence over time. They know how to cover their tracks, and without the right checks in place, they can go undetected for years."

The reality? The average dental embezzler steals over $100,000 before getting caught.

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Warning Signs That Someone Might Be Stealing from Your Practice

Many doctors assume they would notice if money were going missing—but embezzlers are skilled at deception. Here are some red flags David says dentists should watch for:

Unexplained financial discrepancies – If collections and deposits don’t match up, it could indicate theft.

One person controlling all financial tasks – When one employee has unchecked access to billing, payments, and deposits, fraud becomes much easier.

Defensive behavior around financial reports – If an employee resists providing reports or becomes overly protective of financial data, it’s a red flag.

Changes in lifestyle that don’t match their salary – An employee suddenly making large purchases or taking extravagant vacations could be a sign of embezzlement.

"The biggest mistake dentists make is assuming 'it won’t happen to me.' It happens to smart, successful doctors every day. The key is having proactive systems in place before fraud occurs." – David Harris

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How to Protect Your Practice from Embezzlement

David shares three critical steps every dentist should take to secure their finances:

1. Review Daily Reports (And Print Them Yourself!)

Many dentists rely on their team to handle financial reports, but David warns that this creates opportunities for fraud.

Print your own daily reports before leaving the office each day.

Cross-check reports with memory—does the data match what actually happened in the office that day?

Don’t rely on someone handing you reports—they could be selectively edited to hide missing money.

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2. Reconcile Collections & Deposits Monthly

One of the easiest ways to detect fraud is by comparing collections in your practice management software with actual bank deposits.

Look at the total payments received vs. the total money deposited.

Watch for delays in credit card payments—some thieves manipulate when deposits hit the account.

Check for unusual adjustments or write-offs that may be used to cover up theft.

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3. Divide Financial Responsibilities

David emphasizes that no single person should handle every step of the financial process.

One person should post personal payments.

Another should reconcile insurance payments.

A third person should handle deposits.

"When one person controls the entire process, it’s too easy to steal and cover it up. Splitting financial duties significantly reduces the risk."

What Happens If an Employee Gets Caught?

Many dentists hesitate to take legal action against embezzlers, but David encourages them to hold thieves accountable.

The average dental embezzler steals over $100,000.

Many are repeat offenders, hopping from office to office.

Prosperident has helped prosecute multiple offenders, with some receiving years in federal prison.

"If someone stole six figures from you, wouldn’t you want to take action? Reporting fraud protects your practice and prevents them from doing the same thing to another dentist." – David Harris

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Take Action: Secure Your Practice Today

Dentistry is built on trust—but blind trust in financial matters can lead to disaster. By reviewing daily reports, reconciling collections, and implementing financial safeguards, dentists can drastically reduce their risk of embezzlement.

Need expert help? David Harris and his team at Prosperident specialize in fraud prevention and investigation for dental offices. Whether you need an audit or suspect theft, they can help.

📞 Contact Prosperident at: 888-398-2327

🌐 Visit: www.prosperident.com

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What’s Next?

Dental Office Rescue with Linda Kane is dedicated to helping dentists take control of their business, finances, and future. Each episode features industry experts sharing practical, real-world strategies to protect and grow your practice.

📅 New episodes drop every other Wednesday! Subscribe now to stay updated.

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