Embezzlement is far more common than you think. I receive a daily update from Google news that contains embezzlement headlines. Here are several screen shots from that report:
Granted, sometimes the email only contains a single headline. But more often than not, there are a few news items each day.
This is a very costly and complex risk. Consider the following points:
Nearly one-quarter of employee thefts reported involved large-scale losses of over $1 million. High-loss cases often result from schemes that repeatedly divert small sums of money over time, making them extremely difficult to detect. These schemes typically go on for years. In fact, 29 percent of employee theft persisted for more than five years. The average loss for cases that continued for five years or more was $2.2 million, and for cases lasting 10 years or more, the average loss was $5.4 million.
The American Society of Fraud Examiners recently released a comprehensive report on fraud. Here are some key findings: