The Other Costs of Workplace Fraud

Employee Theft 2

The costs of fraud go beyond money, and can include a company’s reputation, value and trust.

Small businesses lost $3.2 billion to workplace fraud over the past year. However, it’s not just money that companies lose because of fraud. A CBC News article reports on the findings from a recent survey from the Certified General Accountants Association of Canada:

The report published Tuesday by the Certified General Accountants Association of Canada (CGA) found some 290,000 small and medium-sized enterprises were victimized by some sort of occupational fraud last year.

The survey of firms with less than 500 employees found that one in four, or 26 per cent, of companies had been cheated by an employee. The most common examples would be misappropriation of either company assets and inventory, or straight cash.

“The financial loss is one thing, but it’s staff morale and management confidence that really take a hit,” CGA vice-president of research Rock Lefebvre said. “The reputation, value, and public and client trust of these companies also suffer.”

Read More: Workplace fraud cost $3.2B last year

ARTICLE AUTHOR


Marketing Coordinator

Ask me a question

Article Published December 6, 2011

Article Tags: