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11/17/2011 - Employee theft a concern for many businesses

Business owners are victimized by fraud more often than some think.

While small businesses employ a variety of tools and methods to prevent thieves, an increasing number of companies are finding their own employees require surveillance.

According to the Association of Certified Fraud Examiners, businesses lose approximately $3 trillion globally, or what amounts to an annual revenue loss of approximately 5% per company, from employee-related theft.

MarketWatch reports that all manner of businesses have had employee theft issues. For instance, the vice president of a Milwaukee-based equipment manufacturer was recently discovered after he'd been caught embezzling $34 million from the company. He was sentenced to 11 years in prison.

Lucy McClurg, associate professor of managerial sciences at Georgia State University's J. Mack Robinson College of Business, told MarketWatch that there's not a single specific thing that causes or influences workplace theft. It's usually a combination of items, such as a culture within the workplace that condones stealing and/or individuals who try to convince themselves that their need or want justifies the act.

Employee theft can happen to any company…so talk to your Selective agent today to learn more about Selective's employee theft coverage for your company.

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