Quick Facts About Employee Fraud
Make no mistake. Employee fraud is real, and a real problem. According to Static Brain, employee fraud is one of the most significant causes of loss estimated between $20 and $50 billion in the U.S. annually.
Here are some important facts about fraud that every business owner should know.
Types of Fraud:
Larceny: Taking cash or property from the business.
Embezzlement: Theft of cash or property by someone in a position of trust such as a bookkeeper or senior management.
Billing Schemes: Come in various forms including setting up a false vendor account and paying the vendor in order to attain the money fraudulently.
Payroll Schemes: Falsifying time-cards in order to receive undue compensation.
Expense Reimbursement Schemes: Padding expense reports by adding expenses never incurred or not business related.
Time Theft: Using company time to conduct non company business, or be underproductive.
Information Theft: Supplying proprietary information to a competitor.
Employee Theft Statistics
- $50 billion stolen annually from U.S. businesses by employees
- 7% annual revenues lost to theft or fraud
- 75% of employees who have stolen at least once from their employer
- 37% of employees who have stolen at least twice from their employer
- 33% of all business bankruptcies caused by employee theft
- 29% of theft by employees who had ideas stolen at work
- 2 years average time fraud occurs before detected
Important Benefits of Video Surveillance in the Workplace
In addition to improving general security, having video surveillance in the workplace is one of the most effective ways to combat fraud.
Implementing a video surveillance system can help you:
- Improve employee productivity and avoid time theft
- Reduce theft
- Reduce likelihood of embezzlement
- Deter and catch incidents of information theft
- Deter acts of false workman’s comp claims
Video surveillance systems are crucial to business success. They are a cost-effective way to deter, document, and reduce employee fraud. For more information about commercial video surveillance systems, please give us a call today! 972.4.3RD.EYE