UNEXPLAINED INVENTORY SHRINKAGE AND EMPLOYEE FRAUD CAN DESTROY YOUR COMPANY
A survey of fraud examiners in 2016 by the Association of Certified Fraud Examiners revealed that U.S. businesses lose approximately five percent of their revenue each year to various forms of occupational fraud. According to the 2016 Report to the Nations, the median loss for all cases reported was $150,000, and over 20% of those cases involved losses of $1 million or more. Occupational fraud covers not only employee theft and fraudulent or exaggerated disability claims, but can include product diverted from its main wholesale or retail supply chain. While most disability and Workers’ Compensation claims are legitimate, studies show that up to two percent or more of all workers’ comp claims are fraudulent. Over an extended period, those losses impact a company’s bottom line in lost sales, inventory replacements, increased insurance premiums and other human resource expenses.
TRACE INVESTIGATIONS CAN ASSIST YOU BY:
- Investigating suspicions of inventory losses due to employee theft;
- Investigating diversion of product from wholesale or retail supply chains;
- Investigating employees suspected of workers’ comp and disability fraud;
- Providing forensic examinations of company cell phones and tablets for unauthorized intrusions, spyware and malware;
- Investigating sub-contractor and vendor frauds and deceptions.
THE BENEFITS OF EMPLOYEE THEFT, DISABILITY AND OTHER FRAUD INVESTIGATIONS:
- Inventory Losses Explained: Employee theft is verified and controlled, either in-house or through civil or criminal prosecutions.
- Product Diversions Stopped: Product diversion from the normal wholesale or retail chain is eliminated;
- Business Costs Controlled: Insurance premium increases and other added expenses can be mitigated or eliminated, impacting the bottom line upward;
- Business Relationships Honored: Standards of care expected by insurers and other providers, business partners and stakeholders are met.
