Reduce Employee Dishonesty Losses
Cost of Employee Dishonesty
US businesses loose 7% of annual revenues to fraud.
As a proportion of 2008 GDP this amounts to a $994 billion yearly loss.
Truly a staggering loss. The median loss experienced by participants in a recent study was $175,000.
Small businesses (100 employees or fewer) proved to be extra vulnerable to fraud as their median loss was $200,000.
See the 2008 ACFE, Report to the Nation.
Employee theft and dishonesty can also reduce production, damage public confidence, destroy employer reputation, and negatively affect employee morale.
Prevalence of Employee Dishonesty
Theft and fraud is something of which employers are aware but perhaps a bit complacent. The true prevalence of these crimes is pervasive and not well known.
Approximately 30% of employees admit to stealing from their employers.
The perpetrators are not those one would expect: 41.2% are managers, 39% are employees, and 19.3% are owners or executives.
See, Not Wanted: Thieves (membership login required).
How Can Background Checks Help?
Prior history is a good predictor of future performance. Background checks are used by employers to verify the freely volunteered information provided by applicants (usually through a resume or job application). Because of the large number of applicants who make false claims, background check tools such as Criminal Record Checks, Prior Employment Verifications, Education Verification, License Verifications, and other research tools can reveal potential problem areas. Through careful and wise use of the information obtained in proper background checks, employers greatly reduce or eliminate the risk of employee dishonesty losses.
We can help you determine what information may be obtained, how long it takes to gather, and how to get started.
Need Help Deciding Which Searches to Choose?
- For a summary of our suggestions on what should be in a thorough background check, see Comprehensive Background Checks.
- For a complete list of all our searches, see Elements of a Background Check for Employment Screening.
- We are also happy to answer your questions. Just give us a call at 530-346-6626.
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