Embezzlement is a crime that many business leaders think will never affect them. Part of the reason for this may be because these incidents often go undiscussed, as they can equate to public relations nightmares for companies. However, for organizations to begin tackling the problem of internal financial fraud, they need to know what they’re up against.
According to a recent study from Marquet International, the number of embezzlements in the United States in 2012 was theft is alive, well and thriving in the current U.S. business climate,” said Christopher Marquet, CEO of Marquet International. “2012 was a blockbuster year for embezzlers and we are expecting high rates of embezzlement for the next several years to come due to the ailing economy of recent years.”
In its 2011 report on embezzlement, the firm noted that most of these thefts are not committed by criminals – in fact, only 5 percent of cases involved an individual with an existing criminal history.
When these incidents happen, companies must react quickly to prevent major financial losses. Through the use of an accounts payable audit, businesses can discover the source of missing funds.