Reasons to Run a Pre-Employment Background Check Part 2

Workplace Theft

Most business owners are worried about employees stealing cash and inventory, and that’s a valid concern.

Businesses estimate that they lose 5% of revenues to employee fraud each year, according to a 2014 study by the Association of Certified Fraud Examiners (AFCE). The study also found that the median fraud loss at businesses with less than 100 employees is 28% higher than at larger companies ($154,000 at smaller companies vs. $120,000 at larger ones).

But money and inventory aren’t the only concerns. Many small employers neglect to consider other forms of potential theft, such as cybercrime.

With fewer resources to put strict security protocols in place, small businesses are particularly vulnerable to the actions of rogue employees. Unfortunately, employees with access to sensitive data have stolen (and in some cases, sold) client and fellow employee information from company computers.


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