*Information required. Your personal information is only used to contact you. Incorp will never sell or share your information.
The Association of Certified Fraud Examiners’ (ACFE) 2012 Report to the Nations on Occupational Fraud and Abuse gives a broad overview of how this problem is affecting companies around the world. Here is a sampling of their findings:
In the 2012 Marquet Report on Embezzlement, Marquet International, Ltd. analyzed 528 cases of employee theft in the U.S. in which at least $100,000 was misappropriated. Declaring that “2012 was a blockbuster year for employee theft in the United States,” and “employee theft is alive, well and thriving in the current business climate in the United States", Marquet issued the following conclusions:
While another recent study surveyed losses in the retail industry, its findings could apply to many other types of businesses as well. The 2012 Retail Theft Study conducted by loss-prevention consulting firm Jack L. Hayes International asked 23 large retail companies to assess the impact of employee theft and fraud. The stores reported that one out of every 40 employees was apprehended for theft in 2012, up 5.5% from the previous year, and thefts totaled more than $50 million, an increase of 7.0%. They found that employees with less than a year on the job, and part-time employees with no vested interest in the company, were most likely to steal from their employer. Interestingly, the average theft by a dishonest employee was more than 5.5 times the amount stolen by a shoplifter ($715.24 vs. $129.12).What can we learn from this data?
According to the study by the ACFE, “The nature and threat of occupational fraud is truly universal." [REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE] And, since the average fraud scheme is not detected for 18 months, you may be a victim right now without even realizing it. Can you afford to lose 5% of your revenue to dishonest employees? In Part 2, we’ll discuss some of the controls you can put in place to help protect your company.