Study: Embezzlement cases cost firms an average of $1.13 million

From Newsday, “Last year workplace embezzlement cases cost companies an average of $1.13 million, according to a 2017 study by global specialty insurer Hiscox.

Fifty-five percent of the cases occurred at companies with fewer than 100 employees, and 37 percent involved losses of more than $500,000.

For small businesses those kinds of losses could be crippling. That’s why it’s important to put safeguards in place to detect and deter such theft.

“Embezzlement continues to be a significant threat to large businesses, but most particularly small businesses,” says Doug Karpp, a senior vice president at Manhattan-based Hiscox.

It’s much harder for smaller businesses to recover from significant losses than their larger counterparts, he says.

Small businesses can be more vulnerable because of the amount of trust they may place in one individual; plus, they likely don’t have the sophisticated controls and audits that a large company would, says Karpp.

No business is immune, and knowing the warning signs is important.”

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