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Homosassa, FL 34446

575-915-8963

Serving clients on the Nature Coast

Citrus County to Tampa area

Sumter & Lake Counties

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Intenal Controls review and implementation

Forensic Accounting analysis of Books & Records to find where the money went

Interview (Interrogation) of employees to identify wirtnesses

Trial Assistance and Expert Testimony as part of your legal team along with your Attorney

  Amount stolen annually from U.S. businesses by employees – $50 billion

Percent of annual revenues lost to theft or fraud – 7%

Percent of employees who have stolen at least once from their employer – 75%

Percent of employees who have stolen at least twice from their employer – 37.5%

Percent of all business bankruptcies caused by employee theft – 33%

Percent of theft by employees who had ideas stolen at work – 29%

Average time fraud occurs before detected – 2 years

Sources of Inventory Shrinkage

    Employee Theft – 42.7%

    Shoplifting – 35.6%

    Administrative – 15.4%

    Vendor Fraud – 3.7%

    Unknown 3.9%

Every year, retailers are losing millions of dollars to theft and, unfortunately, one of the biggest causes comes from employee theft. Employee fraud can occur in any form, from something as little as “forgetting” to swipe a $1.00 transaction to funneling thousands of dollars into a personal account.

The main reasons employees typically commit fraud are:

                                       Pressure and incentive  

            The employee may be experiencing financial stress

                                               Opportunity  

The employee has access to enough merchandise to feel that they can successfully commit fraud and also conceal it

Rationalization  

The employee is able to justify the fraud based on performance or how they are treated at work.

With employee fraud on the rise, revenue loss is higher than ever as a result of these crimes. Here are jaw-dropping statistics about employee fraud Amounts Stolen found in 2015:

    $1,000,000 and up – 25.3%

    $500,000-$999,999 – 9.6%

    $100,000-$499,000 – 28.2%

    $10,000 – $49,999 – 16.8%

    $1,000 – $9,999 – 7%

    $1,000 or less – 1.9%

    Median amount stolen – $175,000

Demographics:

    Men – 59.1%

    Women – 40.9%

    High school degree – 34%

    Some college 21%

    Bachelor’s Degree – 34%

    Postgraduate Degree – 11%

With employee fraud occurring in all areas of business, it’s more important than ever for companies to be aware of the red flags associated with employee theft. Investing in internal controls, implementing eligibility verification, and streamlining procedures and policies company wide are the best ways to start reducing employee fraud within your company.

Consider this

Once your business has evolved from a sole proprietor to

"proprietor + 1"- the time has come to start internal controls

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