Recent Business Leaders Survey reporting upwards of 18-24% Increase in Employee Crime

Crime and unemployment are inexorably linked together, and frequently move in step. Research on the relationship of crime and unemployment shows mixed results, sometimes showing a relationship, and at other times not. The research that found a statistical relationship between crime and unemployment found that for every 1 percent increase in unemployment, that crime rose 1.1 to 2.2 percent. As unemployment conditions worsen and employees become fearful of losing their jobs, or seek to regain that pay they were denied in bonuses or the annual holiday party, businesses need to be every watchful for the crime within, as the crime opportunity is increasing.

The Wall Street Journal reports results of a November 2008 business leaders survey that found that "Businesses Say Theft by Their Workers Is Up"Wall Street Journal (12/11/08) ; Needleman, Sarah E. The subtitle for the article reads -- "Companies Find That Trusted Employees Often Commit the Crimes, and They Believe the Recession Is to Blame." http://online.wsj.com/article/SB122896381748896999.html

WSJ Needleman writes, "In the wake of the recession, more businesses are facing a growing financial threat: employee theft. New research shows that employers are seeing an increase in internal crimes, ranging from fictitious sales transactions and illegal kickbacks to the theft of office equipment and retail products meant for sale to customers. Employers suspect that workers are pilfering from them to cope with financial difficulties at home or in anticipation of being laid off. What's more, it's often the most trusted workers who are committing the thefts."

Summarizing the article, Security Management Daily writes, "approximately 20 percent of employers polled in a new survey said workplace theft has become a moderate to significant problem recently. The survey was conducted by the Institute for Corporate Productivity and HR.com, and involved supervisors and executives at 392 U.S. firms. Eighteen percent of respondents said they have noticed a recent increase in monetary theft among workers, such as missing cash or bogus transactions. In addition, 24 percent of respondents said they had seen a rise in stolen, non-monetary goods like office supplies and retail products. Data from PricewaterhouseCoopers (PwC) reveals that in 2007, companies lost an average of $2.4 million to fraud, most of which was committed by workers, up from $1.7 million in 2005. Brian J. Mich, head of anticorruption compliance and investigations at BDO Consulting, says during tough financial times, "people have a tendency to give in to temptation to commit criminal behavior," and that employers tend to become more vigilant. Mich also observes that people viewed as the most trustworthy--those who have "access to systems and information"--often commit the biggest thefts. A 2007 PwC survey found that in general, 85 percent of people who commit workplace fraud are male, 44 percent are between the ages of 31 and 40, and 38 percent hold at least a bachelor's degree.