Employee fraud is on the rise, reaching virtually epidemic proportions. Earlier this year, a former JPMorgan Chase employee pled guilty to criminal charges of wiring more than $5 million over the course of two years to his personal account to pay off debts. Unfortunately, this is not out of the norm. The cancer of employee theft and fraud has spread so far that in 2015, employees stole an estimated $50 billion from their employers, representing a 7% loss in revenue.
Two main factors contribute to the spread of employee fraud: competition and reduced social deviancy. Competition can breed an environment where employees feel economically squeezed and underpromoted and, therefore, feel justified in committing fraud. Couple that with the glamorization of high-profile examples of fraud, such as Bernie Madoff and Enron, and the perceived deviancy of the behavior dwindles, helping perpetrators rationalize their crime.
So how can HR executives safeguard their businesses from fraud? With a careful mix of prevention and intervention. Here are four steps you can follow to protect your company:continue reading »