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February 2022
Fight Fraud Newsletter
Employee Fraud, How Bad Can It Really Be?
Do you know that U.S. businesses lose up to $140 million a day due to employee-related crimes? Or that two-thirds of all corruption cases are perpetrated by someone in a position of authority?

Here are some other scary numbers:

  • Two-thirds of U.S. based companies fall victim to employee theft (National Federation of Independent Business)
  • In 2020, asset misappropriation was the most common fraud scheme (ACFE)
  • Financial statement fraud, while the least common type of workplace theft is the costliest (ACFE)
  • The risk of billing fraud is twice as high in small businesses than large ones (ACFE)
  • The median age of an employee who commits embezzlement, fraud or larceny is 49 (Hiscox Inc.)
Eight Ways Retail Employees Could Be Stealing From You
If you run a retail business, here are eight ways your employees could be stealing from you:

  1. Short ring: They sell a $10 item, ring it as $5 and keep the difference.
  2. Gift cards: They scan a gift card, tell the customer it's empty, and say they will throw it out. Instead, they keep the card for later use.
  3. Skimming: They charge the customer full price but pocket some of the money.
  4. Under ringing: They charge a client for five items but only ring four.
  5. Sweethearting: They give a friend their employee discount or give a refund without retrieving the product.
  6. Theft: They steal merchandise
  7. Blunt theft: They steal money from the cash register.
  8. Time theft: They come in late, leave early, take long breaks or punch a timecard for a friend who is late or not working that day.

If you are dealing with any of these issues, contact us. We'll find the culprit(s), secure a confession, and potentially obtain restitution.

Source: SoLink
How COVID-19 Impacts
the Use of
Anti-Fraud Technology
Data Analytics and CoVID -10
COVID-19 disruptions have notably affected organizations' fraud risks and anti-fraud programs, according to ACFE's 2022 Anti-Fraud Technology Benchmarking Report.

Since the beginning of the pandemic, more than 40% of the survey participants accelerated their use of data analytics to fight fraud. Nearly 30% accelerated the use of digital forensics/e-discovery tools and case management tools.

Meanwhile, 15% saw a decrease or delay in the use of physical biometrics. Blockchain and distributed ledger technology were unchanged at 79% of the companies.
How We Can Help

IAS can help you identify, deter, investigate and resolve fraud in your company. We can audit your internal controls, create a loss prevention and internal audit program, conduct loss prevention workshops, and most importantly investigate suspected fraud.

Our investigations can obtain signed confessions, restitution and even prosecutions.
View the IAS Newsletter Archive
Data Sources Companies Use in Their
Anti-Fraud Initiatives
Roughly 80% of companies in ACFE's 2022 Anti-Fraud Technology Benchmarking Report include internal structured data in their anti-fraud analytics initiatives. Only one-third use data from unstructured sources.
2022 Anti-fraud data analytics initiatives
Internal Audit Services Inc., Int'l.
Phone: 561.602.0571
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