Are Employees Using These Sneaky Tactics to Defraud Your Business?

Investigation News - Are Employees Using These Sneaky Tactics to Defraud Your Business? - PInow.com Investigator Directory: "Employees embezzle many millions of dollars from their employees each year. All businesses need to be aware of the most common worker scams.

In 2004, Lucy Magda pleaded guilty to stealing more than $2.2 million from her previous employer, the St. Catharines Standard. The Burgoyne family, who owned the newspaper, was forced to sell the newspaper to Southam Newspapers in 1996, a move that some experts claim was brought about by Magda’s dishonesty. In 2006, a business manager of the N.C. Press Association pleaded guilty to embezzling $268,340 from his former employer. In 2006, an employee of Brock Cabinets was sentenced for five to seven years in prison after she was found guilty of embezzling $1.5 million from the company that hired her.

Findings from the University of Florida’s 2004 National Retail Security Survey suggest that theft by employees means more than $14.6 billion in annual losses, which means that employee embezzlement and dishonesty is the single most expensive type of fraud affecting businesses today. Yet, many businesses are blissfully unaware of the impact their employees have on their businesses. Lucy Magda was considered an ideal employee at the St. Catharines Standard – even though she stole from..."

There are many ways that employees may steal from a business: