Employee Fraud Statistics To Watch Out For

Nov 21, 2016 | Corporate Investigation, Legal

If your company isn’t worried about fraud, than maybe you should think again. Businesses across the country do not think it is going to happen to them, but it is occuring more and more. The 2008 Report to the Nation from the  Association of Certified Fraud Examiners states, “U.S. businesses lose 7% of their annual revenues to fraud. That translates to approximately $994 billion in fraud losses.” You may think big businesses are losing out on more money, but the small businesses had an average loss of 200,000 for less than 100 employees. This is a more substantial loss than many big businesses have. Below are examples of some of the employee fraud cases in Las Vegas:

 

The Las Vegas Water District –

A 15 year old office worker at The Las Vegas Water District was arrested after stealing over 6.7 million dollars. Through the company’s Staple’s account, the person purchased ink and toner cartridges and sold them online for a profit. The FBI was involved because this involved taxpayer money as well as an interstate activity, and the 15 year old, along with 3 other workers involved, were sent to jail.

 

Las Vegas Casino –

Las Vegas Casinos are stepping up security even further due to the current state of the economy. Fraudulent activity is used mainly by old scams in cheating methods at casinos. Employees from two unidentified casinos were caught stealing large sums of money. The old scam that has been used for years is to steal cash and then count less money made. This occurred in the count room at the casino, and although two employees were arrested, authorities believe there were more employees involved.

 

ING Company –

An employee from the reinsurance division from the ING company embezzled 8.5 million dollars. His employer made a huge mistake that made it easy for him to embezzle funds. He would login the company system as another person, then logout, and finally he would approve of the check as himself. He wrote checks of over 1,000 to himself every couple of weeks. He ended up writing more money on checks to himself until he acquired more than 8.5 million dollars in four years. The fraudulent activity was discovered by his wife who questioned where his extra money came from to an employee. He was then sentenced to 94 months in prison.

 

With the current state of economy and Las Vegas Worker’s fraud on the rise, evaluating workers is more important than ever. If you suspect fraudulent activity within your company, contact a Las Vegas Corporate Investigator today. Together, we can help gather the correct information to get rid of employee fraud, and once again restore an honest workplace.