Tuesday, November 1, 2011

Internal Theft and Fraud Costs Businesses $40 Billion a Year

Why rob a bank, when it’s so easy to steal from your employer?

• Retail theft rose by 5.9% in 2009, the biggest increase since 2001.
• But it's not the shoplifters retailers have to worry about.
• Dishonest employees steal about 6.6 times more than shoplifters.
• In fact, one out of every 28 retail employees was caught thieving in 2009.
Need a laptop? Just grab one from the office

• In 2005, theft of office equipment cost employers $550 million.
• By 2007, it cost employers $656 million.
• By 2009, it cost $747 million.
• Want that equipment back?
• Good luck.
• 96% of stolen office equipment is never recovered.
Often, the most dangerous culprit is someone on the inside

• According to Forrester Research, employee theft of sensitive information is 10 times costlier per incident than any accidental sharing of sensitive data.
• Forrester recommends, “Enterprises should focus more of their resources on stopping the most damaging incidents: deliberate theft by insiders and abuse by outsiders.”
What other crimes should businesses watch out for?

• Theft and fraud costs businesses $40 billion a year.
• It happens without guns, without violence and often, without detection.
• And 40% of these crimes are committed by trusted employees – not strangers.
Any organization could be a target

• It's not just consumer goods and laptops up for grabs.
• Companies need to protect their proprietary secrets, knowledge and processes that:
• Generate revenue
• Increase profits
• Provide competitive advantage
• This information can be stored almost anywhere, from Word documents and presentations to CAD drawings and flowcharts.
How much is that data worth?

• Knowledge-intensive industries accrue 70 to 80% of their portfolio value from proprietary data and secrets.
• What industries are we talking about?
• Manufacturing
• Information services
• Professional, scientific and technical services
• Transportation
• When their important data is stolen, leaked or misused, the impact can be catastrophic.
Visit www.millennium-groupinc.com for information on how to prevent internal theft and fraud.

No comments:

Post a Comment