Theft and Embezzlement

Protect Your Workers


Theft and embezzlement

Fraud is a general category that includes both embezzlement and theft.

According to the Association of Certified Fraud Examiners (ACFE), “the typical U.S. business loses 7% of its annual revenues to employee fraud” and “small businesses have the most cases and the highest losses.

” The ACFE estimates that in 2019, the total cost to U.S. organizations, resulted by employees’ theft, reached the incredible sum of 50 billion dollar.

According to the U.S. Chamber of Commerce, it is believed that 75% of employees steal at least once.

They also estimate that the incidence of employee theft is 15 times greater than external theft and that 30% of business failures are caused by employee theft or embezzlement.

According to the FBI, corporate theft is the fastest growing crime in the United States.

It’s bigger than identity theft, cyber fraud, credit card theft and internet scams.

And what makes it a most pernicious crime is it’s difficultly to uncover.

It can start with minor fraudulent expense reports or “non-cash” small items like office supply, food or toilet paper.

But even the pettiest can lead some employees to perpetrate a significant embezzlement like forging checks, submitting phony invoices, conspiring with suppliers and so forth.

There are some warning signs that should raise the suspicion of an employer like declining profits, unexplained inventory shortages, discrepancies in accounting and more.

Many red flags can be seen only by observing and analyzing employees’ digital behavior and finding traces for irregularities and abnormalities.