Key Statistics on Employee Theft to Be Aware of in 2023
Despite significant investments in fostering a positive company culture and employee development, businesses remain vulnerable to employee theft. This encompasses financial theft, data breaches, and even time theft. Grasping the magnitude of this challenge is the first step towards addressing and potentially preventing it.
Snapshot of Employee Theft Figures for 2023
- 22% of SMEs (Small and Medium-sized Enterprises) have fallen victim to employee theft.
- In 88% of theft cases, there were efforts to conceal the fraudulent activities.
- SMEs are more prone to issues like payment tampering and skimming compared to larger corporations.
- Insider tips account for 42% of detected employee thefts.
Delve into the detailed statistics below to gauge the potential risks, understand the financial implications, and most crucially, discover measures to mitigate the repercussions.
Employee Theft: The Numbers
- 34% of fraud incidents in SMEs are attributed to employees, as per a report by Verizon.
- A survey by Business.org revealed that 22% of small business proprietors have had employees pilfer from them.
- Companies across the globe allocated over $11 billion in 2022 for fraud detection tech, as highlighted by Fortune Business Insights.
- Financial departments are the epicentres for nearly half of the reported fraud cases, according to ACFE.
- The National Retail Federation’s 2021 survey indicates that theft by employees costs retailers thrice as much as shoplifting incidents.
- A staggering 88% of theft incidents involve attempts to camouflage the fraud, as per ACFE data.
Risk Analysis: Employee Theft
- Post-COVID-19, 68% of firms noticed a surge in fraud and employee misconduct risks, as per a 2022 PwC study.
- Billing and non-cash frauds constitute 38% of employee theft incidents, according to ACFE.
- SMEs are particularly susceptible to check tampering and skimming, as highlighted by ACFE.
- Over 70% of data breaches involve employees misusing their data access privileges, as reported by Verizon.
Theft Prevention & Management
- A study by Code42 indicates that 98% of companies are apprehensive about cybersecurity risks associated with employee departures.
- ACFE data suggests that 42% of employee thefts are unearthed through internal tips.
- Only 21% of a firm’s cybersecurity budget is allocated towards insider fraud prevention, as per Code42.
Employee theft remains a pressing concern for many businesses. However, armed with the above insights, companies can make a compelling case for implementing robust theft prevention mechanisms. This includes surveillance systems, stringent inventory checks, employee tip lines, advanced cybersecurity solutions, and thorough employee vetting. By understanding and addressing the issue, businesses can significantly reduce the adverse effects of employee theft.