News

Category: Employee Theft

Employee Theft and How to Prevent it

By Sandra Shinn
September 15, 2014 Category • Employee Theft, Prevention

According to statisticbrain.com, in 2012, as much as $50 billion (yes, you read that correctly) is stolen annually by employees from businesses in the United States. In addition, this contributes to the 7% of annual revenues that is lost to theft and fraud. 75% of employees have stolen from their employers at least once, and 37.5% have committed the crime at least twice. Theft and fraud are committed by men and women alike, college graduates and high school dropouts. There is no specific demographic to pin point, although these crimes affect businesses as a whole. So, why do employees steal? Some of the most common reasons, according to CPA Hubert Klein, include perceived financial need, perceived opportunity, and the employees ability to rationalize or justify the act. These three factors form what is known as the Fraud Triangle. Sure, your employees may appear to be perfectly nice and likeable people. However, the reality is that many people seize opportunity, whether it is because