Employees are one of your business\u2019s most valuable assets. However, their dishonesty can be costly. A single thief can ruin a company\u2019s finances, shatter morale, and erase months of hard work. Despite efforts by employers to minimize the risk of internal fraud, employee theft statistics show that this type of offense occurs in all areas of business. Employee crime types include everything from larceny to embezzlement and expense reimbursement schemes to time theft. <\/p>\n\n\n\n
Are the consequences of internal theft quantifiable? How long does proving employee theft take? What business types run a higher risk of such offenses? Keep reading to find out.<\/p>\n\n\n\n
The scope of employee theft and position abuse cannot be understated. From buddy punching to employees stealing the company\u2019s information and money, there are so many ways to harm the companies they work for. While some of these acts can seem minor, it\u2019s important to understand the impact of the problem at all levels. That\u2019s the only way to prevent occupational theft in the future.<\/p>\n\n\n\n
(National Federation of Independent Business)<\/p>\n\n\n\n
(National Federation of Independent Business)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
Corruption followed with 43%, while financial statement fraud was found in 10% of the cases. Many cases were examples of at least two of the aforementioned employee theft mechanisms.<\/p>\n\n\n\n
(Replicon)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(National Federation of Independent Business)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(American Bar Association)<\/p>\n\n\n\n
Projecting total business losses attributable to employee theft is an essential part of all internal fraud prevention strategies. However, given the number of unknown factors that contribute to it, measuring the cost of theft at work is an incredibly complicated endeavor. Each year, companies lose millions of dollars to different types of internal theft. According to employee theft statistics, some businesses even go bankrupt as a result of such offenses.<\/p>\n\n\n\n
Still, so many cases never come to light. In addition, the full financial impact of the fraudulent activity that\u2019s actually detected is also difficult to calculate. Due to these limitations, all attempts to quantify the damage caused by employee theft are imperfect. However, research institutes and similar institutions put in a lot of effort to gain insights and raise awareness about these issues. Here are some of the most interesting cost-related employee fraud stats we’ve come across:<\/p>\n\n\n\n
(International Monetary Fund, Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(Replicon)<\/p>\n\n\n\n
(Hire Power Associates)<\/p>\n\n\n\n
(Jack L. Hayes International)<\/p>\n\n\n\n
Companies of all shapes and sizes should be aware of employee theft. But studies show that certain organizations are more vulnerable than others. While scheme mechanisms can vary widely by industry, it seems that employee theft cases are commonly found in small and medium-sized enterprises. Although it may sound counterintuitive, smaller businesses with a close-knit workforce are particularly at risk because of how empowered and trusted their employees are.<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(Hiscox Inc.)<\/p>\n\n\n\n
(Hiscox Inc.)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(Hiscox Inc.)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
Profiles of employees involved in theft can vary when it comes to age, profession, and motivation. However, there’s one thing most of them have in common – they are usually the least suspicious.<\/p>\n\n\n\n
For example, employee theft stats reveal that embezzlers tend to be smart and liked. These are often people who experience financial hardship and thus gain the motivation to start stealing money from work. Additionally, these employees usually have access to the company\u2019s funds through title or tenure and also possess the skillset to commit this type of fraud.<\/p>\n\n\n\n
Most theft cases start out as \u201cone-time loans\u201d that the employee intends to pay back as soon as possible. Still, most perpetrators come back for more and try to justify the wrongdoing – some of them consider themselves underpaid, and others feel like there\u2019s no other way to provide for their families. If they don\u2019t get caught stealing from their employer, they probably won\u2019t break the cycle.<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
(Hiscox Inc.)<\/p>\n\n\n\n
(Hiscox Inc.)<\/p>\n\n\n\n
(Association of Certified Fraud Examiners)<\/p>\n\n\n\n
Here\u2019s a list of some of the most shocking employee theft cases that took place in the US throughout the last few decades:<\/p>\n\n\n\n
(Hiscox Inc.)<\/p>\n\n\n\n
(Hiscox Inc.)<\/p>\n\n\n\n
(Hiscox Inc.)<\/p>\n\n\n\n
(Hiscox Inc.)<\/p>\n\n\n\n
(Hiscox Inc.)<\/p>\n\n\n\n
When she was caught, it turned out that she had also stolen from multiple previous employers. Working as a bookkeeper meant that she was violating her parole on previous business fraud charges.<\/p>\n","protected":false},"excerpt":{"rendered":"
Employees are one of your business\u2019s most valuable assets. However, …<\/p>\n