It’s no secret that fraud within a business can be financially costly. According to a study done by the Report to the Nations (ACFE), over 89% of fraud within a business is asset misappropriation, while the average loss totals at $114,000.
That amount in itself can permanently cripple a business, but what about the emotional cost?
All financial burdens aside, employee – or even employer – fraud affects everyone and everything in the workplace.
First there is the initial sense of betrayal, which can quickly turn into anger – a feeling that can breed bad feelings between even those who weren’t involved. Trust is instantly lost between those you thought you knew, and suspicions are raised between both management and fellow employees alike.
Next there are the legal costs of prosecution, hiring an outside party to double check inventory, and the cost of training new staff to replace the guilty parties and supervisors who failed to catch the fraud in time.
Even if the financial losses are survivable for a business, often the loss of trust with those with whom you work is the most difficult to overcome. Systems change, upheaval happens in the workplace, and everyone feels at least a little bit of betrayal.
Protect more than just your assets from fraud, but your very business itself by taking as many steps as possible to encourage workplace trust, security, and integrity!