Businesses: Be Wary of Insider Crime and Identity Theft

magnify-glass-paperwork-fb-shutterstock_184328180Insider Crime – Many businesses put a great deal of effort into protecting their property from theft by outsiders but neglect to put an equal effort into preventing insider theft. Employers should not underestimate the risk of trusted employees stealing from the company.

Loss control experts at the Association of Certified Fraud Examiners (ACFE) encourage employers to adopt two strategies to prevent internal theft: increase the perceived probability of discovery and decrease the probability that an employee will commit the crime.

The ACFE recommends stringent accounting controls, which your accountant can help you create, and frequent audits. Having a policy that gives honest employees a way to report theft by their co-workers without fear of reprisal helps cut down insider theft, as does emphasis on ethical practices, rewarding company loyalty and having clear performance standards.

Identity Theft – Identity theft occurs when an individual uses someone else’s personal information to commit fraud. Federal law requires businesses to provide identity theft victims with transaction records relating to their identity theft free of charge.

The above is an excerpt adapted from the article, “Reducing Vulnerability To Theft.” For more information, please visit www.iii.org.

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