5/13/2014 - Report: U.S. companies more frequently on receiving end of fraud
Business insurance can help entrepreneurs rebound should an event occur at the workplace that affects them financially. Based on a recent analysis of company operations around the globe, U.S.-based business owners tend to be the ones most frequently affected by scenarios that may require a monetary lifeline.
More than 50% of business organizations within the U.S. have been victimized by some aspect of fraud in the past two years be it accounting, bribery, employee crime or corruption, according to a newly released report from advisory services firm PricewaterhouseCoopers. Meanwhile, among other companies worldwide, the average is approximately 37%.
These financial disruptions are often quite costly. The report found that more than half of U.S. companies experienced fraud that was at least a $100,000 hit, with nearly one in 10 being impacted to the tune of $5 million or more.
"Economic crime has become a truly borderless threat," said Steven Skalak, partner for PwC's forensic services practice division. "The reality of fraud is that it can impact a company's revenues as directly as other business and market forces."
Most of the time, the study found, economic crimes were perpetrated in-house. PwC noted that 50% of wrongdoings were caused by someone within the company, while outsiders - i.e. external actors - accounted for 40%.
Ultimately, it's the decision of the business owner if they want to involve law enforcement. Among crimes when employees were the culprits, the average amount stolen from the company over time was $20,000, according to a recent study out of the University of Cincinnati.