FGIB:Providing Employee Dishonesty Insurance
According to the Association of Certified Fraud Examiners (ACFE), business losses are estimated at $400 billion annually as a result of employee-related fraud and embezzlement crimes. Moreover, it’s not only large players that are victims of employee dishonesty and theft – small businesses are particularly vulnerable to occupation fraud. In fact, the ACFE estimates that the median loss suffered by organizations with fewer than 100 employees is $200,000.
There are several reasons behind employee fraud, including the opportunity available to them if proper controls are not in place, economic pressures, and a bad attitude from a disgruntled employee who feels the firm owes them, perhaps because he or she was passed up for a promotion.