One would think that it'd be easier to steal from larger companies. These companies have so many employees and items to keep track of that it should be easy to get away with a lot. However, studies have shown that large companies rarely have to deal with embezzlement by employees.

Surprisingly studies have shown that over 80% of all employee embezzlement cases occur in companies with less than 150 employees. 

Why Are Small Companies At Risk?

So why do these small companies have to deal with such potential for employees stealing from them? There're a few reasons. First, smaller organizations tend to be close-knit. This means employers often give more trust and freedom to employees. Employees in small companies tend to have greater empowerment than those of large firms.

As such, these employees are given more of a free reign, which leads to the ability to steal without detection. Even more surprising, most embezzlement happens from employees who have tenure and title within the organization. These individuals often end up taking the largest amounts from the company.

Positions That Steal A Lot

Fraud and embezzlement vary from industry to industry. One fact tends to hold true no matter the business: managers were found to steal more than any other employee group.

Common positions that stole from companies include:

  • Controller
  • Bookkeeper
  • Manager
  • Teller
  • Accounting
  • Director
  • President
  • Treasurer
  • Employee

Why Do Employees Steal?

There's no one reason why employees end up stealing from a company. Some employees end up struggling with enormous financial pressures, and find their only way to get more money is to take from the enterprise.

Others steal from the company out of spite. Many employees who commit theft do so because they feel slighted by the corporation. They could feel their underpaid, or they could not like how they're being treated in the office.

Some employees take money from the company as a "loan" in the beginning. They have the intentions to return what they stole, but it never happens. As the employee doesn't get caught, so they end up in a nasty cycle of stealing without remorse.

The Worse Industry For Employee Embezzlement

Over 17% of all employee embezzlement cases were found in the financial services industry. The financial service industry is ripe with schemes because of the opportunity. Many employees in the industry have access to bank deposits, the ability to forge checks, an opportunity to fraudulently use credit cards, chances to fake invoices, and much more.   

Protect Your Company

It's imperative you protect your business. The employees closest to you could be robbing you blind. You need more than your own two eyes. You need a system of checks and balances in place to ensure your employees are not embezzling. You need to perform background checks on any and all employees who handle money within your organization. Teaching all individuals within your company to detect fraud is another great place to start. 

If you feel that your business if vulnerable to employee theft contact Skyline Risk Management, Inc. at (718) 267-6600 to voice your concerns.