What Do Employers Do When They Find Their Employee Stealing?
- If you are stealing from your boss, don't let the statistics about the number of people who kept their jobs get your hopes up. In 70 percent of fraud cases, according to Joseph Wells, writing in the Corporate Fraud Handbook, companies reported fraud to police. In 83 percent of fraud cases, the perpetrator was fired. And in 27 percent of cases, the perpetrator was required to pay restitution.
- There's a big difference between cases referred to police and those kept inside the company. According to the fraud handbook, the median loss in cases sent to police for investigation was $200,000. For cases kept inside the company, it was $100,000. The more that is stolen, the more likely it is that a case will go to the police.
- Employers can sue to recover stolen money, but they frequently weigh the costs of legal fees against the likelihood of recovery. In cases where companies did sue, the median loss was $1.2 million. Instances of fraud that did not lead to a civil suit saw a median loss of $100,000 to the company. If you are sued for fraud, and you lose, your company could seek to have your home sold in an effort to collect the judgment. Any public record -- such as a lawsuit or criminal conviction -- could have disastrous consequences in terms of your ability to obtain new employment.
- The Corporate Handbook surveyed fraud victims who did not take legal action and asked why. In 30 percent of fraud incidents where no legal action was taken, companies reported that parties reached a private settlement. Companies that declined to take legal action cited a fear of bad publicity 43 percent of the time as a reason for their decision. In 33 percent of cases where companies decided not to take legal action, it was because they believed internal discipline was sufficient. (Numbers tallied more than 100 percent because some firms had multiple reasons.) Just 13 percent declined to take legal action because they lacked evidence, and 21 percent did so because it was too costly.