Last month, a former salesman for a lumber wholesaler in Manitoba was charged with defrauding his former employer out of $4.2 million, using fraudulent rebates over several years.
In Indiana, a worker in a preschool daycare was charged with embezzling $10,000 by misusing the company credit cards.
In Los Angeles, 13 employees are accused of making multiple fraudulent claims for COVID relief funds.
In Queens, a company was charged with insurance fraud of over $600,000.
In Sault St Marie, an employee was charged with fraud and theft for stealing and selling company merchandise.
An Albany, New York was recently charged with payroll theft.
Think these are aberrations? Wrong. Every day, thousands of businesses across Canada, many tens of thousands across North America, experience significant theft or fraud, perpetrated by insiders (employees and suppliers). That number is likely underestimated, since the huge majority of businesses experience significant theft and fraud without ever knowing it.
Just in Manitoba, five thefts by employees and suppliers made the news in the past three months, with over $5,300,000 taken by them.
Our company provided loss detection services for just under 350 businesses in the western provinces, most with fewer than 25 employees. Many had 10 or fewer workers. Our average apprehension involved $9,400, with 83% of the businesses in which we conducted employee or vendor theft investigations having an identified theft or fraud issue. Almost every manager was incredulous that someone had stolen from them.
In every instance, lack of monitoring and/or controls led to the opportunity to steal. Fraud and theft will occur, give the right circumstances. But employers, with a few simple tools, can mitigate against the losses.
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