39 EMPLOYEE THEFT STATISTICS: 2020/2021 IMPACT & COSTS TO BUSINESS written by Arthur Zuckerman May 29, 2020
Revenue loss and even ultimately filing for chapter 11 bankruptcy are real risks business owners face as they maintain operations, and employee theft is one reason a business can take a nose dive. Potential global loss from fraud and employee theft is $2.9 trillion annually. It is also estimated that 33% of corporate bankruptcies in the US are linked to employee theft. Embezzlers and thieves need a means, motive, and opportunity to commit their crime but there is no specific way to pinpoint a profile for the thieving employee as those who were caught committing occupational fraud typically have no prior records. This article pulled currently available data on occupational fraud to present a snapshot of the repercussions of employee theft on business revenue.Impact of Employee Theft Employee theft is not a question of if but how often and how much. All businesses have experienced employee theft in one form or another. Over 75% of employees also admitted to pilfering from their workplace. Many would rationalize that periodically dipping into the pot will not hurt the business as the theft amounts are negligible. The small thefts combine to losses equal to 5% of annual business revenue while annual inventory loss rates come up to as high as 43% in the US.
- 95% of all businesses have experienced employee theft.
- 3 out of 4 employees admit to stealing from their employers at least once.
- Nearly 40% (37.5%) of employees have stolen from their employer.
- 3 out of 10 employee theft cases lasted for more than five years.
- Employee theft cases lasting more than ten years cost an average loss of $5.4 million.
- Employee fraud typically goes on for two years before it is detected.
- Non-cash property theft nearly doubled in the period between 2002 to 2018 from 10.6% to 21%, an increase of 98.11%.
- 89% of occupational fraud is asset misappropriation with a median loss of $114,000.
- In comparison, financial statement fraud is only 10% of total occupational fraud cases but the median loss is $800,000.
Types of Employee Theft
52% Theft of office supplies
30% Theft of time
18% Theft of corporate intelligence
32% Theft of products and services
Source: Kessler International
Created by CompareCamp.com
- Global employee theft accounts for 28% of inventory losses while the rate for the US is 43%
- 52% of employees steal office supplies – pens, paper, or used the company printer for personal profit.
- 66.7% of retail companies reported an increase in inventory shrink in 2019.
- Occupational fraud perpetrators typically have no prior criminal records but 4% have a criminal record or fraud history.
- A typical business loses 5% of its revenue annually which translates to potential global fraud loss of $2.9 trillion.
- 26.3% of occupational fraud cases were uncovered by a tip from an employee.
- Seven out of 10 employee theft cases came from organizations with fewer than 500 employees.
How Occupational Fraud Is Detected:
40% Tip
15% Internal audit
13% Management review
7% By accident
Source: ACFE
The Cost of Employee Theft
Business losses due to employee theft amount to $50 million annually in the US, but the financial losses are not equal for all businesses. Median losses for small businesses are 92.31% larger than a business with employees numbering more than 100.
- The loss is greater for small businesses. A business with an employee count of less than 100 has a
- median loss of $200,000 while those with over 100 employees only report a median loss of $104,000.
- 19% of cases of occupational theft involves owners and business executives but it caused a median
- loss of $850,000
- Business losses amounting to $50 billion are recorded annually from employee theft.
- 42.7% of Inventory loss in US stores is caused by employee theft.
- One-third of business bankruptcies in the US are caused by employee theft. Total business losses from these bankruptcies amount to $50 billion annually
Created by CompareCamp.com
Source: GetVoIP
- There were more than $7 billion in total losses globally in 2018 because of occupational fraud.
- Nearly a quarter of occupational fraud cases had over $1 million in losses.
- Small and mid-sized businesses, those with employees fewer than 500, have lost an average of
- $1.13 million in 2017.
- 66% of tech employees who stole from their employers, took items valued between $1–$19. 14%
- stole high-value items, $100+, and are the second-highest group.
- The average employee theft case value in 2019 was $1,380.62 which is a considerable 11% jump
- from the previous year’s case value.
- The average employee embezzler stole nearly $25,000 a month from work.
- 5% of occupational fraud perpetrators are aged 56–60 but they have caused the largest median loss at $480,000.
Employee theft exists across many industries. Research from the Association of Certified Fraud
Examiners found embezzlement, one form of employee theft, have higher cases in the banking and finance
sectors.
- 37% of employee theft in the form of embezzlement is perpetrated by finance and accounting
- employees.
- The most common embezzlement scheme is funds theft which is used in a third of all cases.
- The industries most affected by occupational fraud are banking and financial services, manufacturing,
- and government and public administration sectors.
- One in five tech employees steals from work.
Created by CompareCamp.com
Employee Theft Demographics
Employee theft in the form of occupational fraud has more cases with male perpetrators. The global
average is close to 70% for males but the rate is even higher in other continents. The rate for the Middle
East and North Africa is more than nine out of 10.
This is more a case of opportunity than a propensity for theft. After all, there are more men in the workplace in the MENA region as well as in other parts of the world. When women do commit employment theft, however, the value of the theft is 75% lower.
- Gender skews male in occupational fraud with a global average of 69%. The Middle East and North Africa have the highest rate of male occupational theft, 92%, while North America has the lowest at 64%.
- 56% of funds theft cases are perpetrated by women.
- 83% of female tech employees who admitted to theft at work took items valued between $1–$19
- while the rate for male tech employees is 65%. In contrast, only 9% of female tech employees took
- high-value items $100+ versus 17% for male tech employees.
- Employee theft in the US was committed by 59% of men and 41% of women.
Created by CompareCamp.com
Source: Statistic Brain
- Employee theft perpetrators have an average age of 48.
- 38% of employees who commit occupational fraud are between the ages of 36–45.
- Employees with high school education and a bachelor’s degree are tied at 34% of employees’
- educational background most likely to commit occupational fraud.
The Olympics and Recovery
by Terrence Shulman
The XXXII (32nd) Summer Olympics in Tokyo are upon us (delayed by a year due to Covid and just over half-way through their 17-day run!
Much attention has been paid to U.S. Women’s Gymnastic superstar Simone Biles’s withdrawal from the competition due to her struggle with the mental “twisties,” how the Russians snuck their way into the competition despite being banned as a country, and how many of Japan’s own citizens (and others) have protested and boycotted the Olympics due to the Covid “Delta” variant surge (and a typhoon building steam off the coast).
And, yet, nearly a billion viewers may be watching at least some of The Olympics on TV or the Internet and my wife Tina and I are just two of those. The Olympics do have a unique way of bringing the world together in a unique way to celebrate the best in athleticism, national pride, and sportsmanship. Plus, there’s always so many incredible human stories about how to persevere individually and through collective support from country, family, friends and others—whether one wins a medal or not. And those interesting opening and closing ceremonies–love them, hate them, or indifferent to them–are at least thought-provoking.
And, man, do we need some form of global unity at this fragile time in the world with the Covid epidemic and political and social polarization in the U.S. and many other countries at a fever pitch. The Olympics reminds me a lot of recovery and recovery groups. How so? Well, for one, I have previously found myself addicted to them! I don’t know about you but I can watch them 24/7 (at least for the 2 weeks they’re on TV).
First, the opening ceremony was spectacular! Second, I am a sports nut to begin with! Third, I get to root for my fellow countrymen and countrywomen! Fourth, I get to be amazed by all the different events and colorful people and stories! Fifth, I get to be inspired by the discipline and heart of the athletes to push themselves to their limits! Sixth, I get to take a break from my other addiction–following
politics! And seventh, very few things can bring people of all walks of life together for a common goal and purpose; like the Olympics, recovery is the great equalizer.
On another level, I get to remind myself that as a recovering person I, too, am an Olympian of sorts. For recovery is like a marathon (or at least an event made up of many, many sprints). We work hard to understand ourselves and our addictions and to practice, practice, practice new ways to avoid relapse, get stronger, heal, grow and meet the challenges of life each and every day. All that training can make the difference between caving and succumbing to an urge to use/relapse or declaring a greater victory of achieving a personal best, breaking our own record(s), and standing on the podium (if only for a brief time), with our heads held high in dignity.
And like the Olympics which bring together men and women from across the globe and show us how similar we are, addiction is also the great equalizer. None of us can take on addiction by ourselves just as no athlete gets to the Olympics alone: he or she has many coaches, many supporters, and many fellow athletes to be inspired by and to learn from. One of the ultimate goals of both the Olympics and recovery certainly is to be all we can be–or at least to give it our all! And that sounds a lot to me what recovery is meant to be.
Healthline Article on Stealing as A Sickness
Medically reviewed by Dillon Browne, Ph.D.
Written by Ana Gotter
Updated on June 1, 2017
What is stealing?
Stealing is the act of taking something that doesn’t belong to you without permission. When we hear the word “stealing,” we often think of someone breaking into our homes or shoplifters trying to smuggle highpriced products out of a store. We think of career criminals, or stealing for dishonest personal gain.
While stealing can be dishonest criminal theft, it can also be the result of poor impulse control or addictive compulsive disorders.
Causes of stealing
Kleptomania
Kleptomania, or compulsive stealing, is a common cause of theft that many forget about. This type of stealing is about a psychological compulsion instead of a desire to profit or gain something material or financial, as defined by the Diagnostic and Statistical Manual of Mental Disorders, 5th Edition.
Kleptomania is a recurrent failure to resist the urge to steal. In most cases of kleptomania, the person steals things that they don’t need. The items stolen are often of little to no value, and they could often easily afford the item if they had decided to pay.
This is unlike most cases of criminal theft, where items are stolen either out of need or because they’re very expensive or valuable.
People with kleptomania feel strong urges to steal, with anxiety, tension, and arousal leading up to the theft and feeling pleasure and relief during the theft. Many kleptomaniacs also feel guilty or remorseful after the act of stealing is over, but are later unable to resist the urge.
People with kleptomania also typically steal spontaneously and alone, while most criminal thefts are planned in advance and may involve another person.
Unlike criminal theft, the items that people with kleptomania steal will rarely be used. They’ll likely stash them away, throw them out, or give them to friends and family.
Other causes of stealing Many other factors besides kleptomania can cause a person to steal. Some people steal as a means to survive due to economic hardship. Others simply enjoy the rush of stealing, or steal to fill an emotional or physical void in their lives.
Stealing may be caused by jealousy, low self-esteem, or peer-pressure. Social issues like feeling excluded or overlooked can also cause stealing. People may steal to prove their independence, to act out against family or friends, or because they don’t respect others or themselves.
Risk factors that may cause kleptomania
Different factors can contribute to kleptomania. Genetics and biology may account for a portion of the root causes, which include:
- having other mental illnesses, including bipolar disorder, anxiety disorders, substance use disorders.
- or personality disorders (The link seems to be strongest with obsessive-compulsive disorder).
- problems with low levels of serotonin, leading to an increase in impulsive behaviors
- relations with addictive disorders, since stealing can release the rush of dopamine that becomes addictive
- an imbalance in the brain’s opioid system, which controls urges
- a family history of kleptomania or addiction
- being female, as two thirds of people diagnosed with kleptomania are women
- head trauma, like concussions
Psychological trauma, especially trauma at a young age, may also contribute to the development of kleptomania. Family dysfunction can also cause children to steal, which can set the stage for kleptomania tendencies when combined with other mood or addiction disorders.
Stealing in children vs. in adults
In children
While parents can find it unsettling, it’s not common for young children to steal small things without knowing better. Young children, especially those under the age of 5, are prone to taking things that excite them. When you notice your young toddler or child stealing, you can teach them that it’s wrong.
There are a number of reasons older children may steal, and it’s rarely out of necessity. Sometimes older children steal as a show of courage or wit, trying to impress peers. In some cases, they’ll even do it to act out or get attention.
According to the American Academy of Child & Adolescent Psychiatry, when stealing in older children is persistent, it may indicate behavioral or emotional developmental problems. This can be caused by an unstable home life or genetic factors that can trigger such problems. Children who have consistent issues with stealing often have difficulty trusting others, and may blame the behavior on other people.
In adults
Adults often have very different reasons for stealing than children do. Adults are more likely to steal out of financial need than children. This often makes up a large portion of criminal theft.
Sometimes adults steal out of entitlement. These are often very, very minor thefts, like stealing boxes of tissues or a plush robe (and even mattress pads) from a hotel room, or a stapler from work. The person may feel that they’re paying enough for the hotel room, or that they’ve worked hard enough to have “earned it.”
Kleptomania is also a cause of stealing in adults. It causes theft of often small, insignificant items that the person who stole it doesn’t need. It’s an impulse control disorder, and the person stealing often regrets it immensely after it’s over.
Getting help for stealing
When theft is repetitive or is done without any remorse, guilt, or understanding of the impact, it can be a sign of other problems. These can include family trouble, mental health issues, or delinquency. Children who steal often have trouble making and keeping friends, have poor relationships with adults, or have issues with trust.
If emotional or mental health issues could be the reason for stealing, a child might benefit from seeing a therapist or mental health professional.
Treatment for kleptomania
Kleptomania is extremely difficult to treat alone, so getting medical help is a necessity for most who experience it. Treatment typically involves a combination of psychotherapy and medications, which can address triggers and causes.
Cognitive behavioral therapy is most commonly used to treat kleptomania. With this type of treatment, your therapist will help you learn to stop detrimental behavior and address the cognition that causes them. In cognitive therapy, your therapist may use:
- Systematic desensitization, in which you practice relaxation techniques to learn to control the urges to steal
- Covert sensitization, in which you imagine yourself stealing and then facing negative consequences like being arrested
Medications may be prescribed to address related mood or mental health disorders, like depression or obsessive-compulsive disorder. Your doctor may prescribe an SSRI (selective serotonin selective uptake inhibitor) or an addiction medication that balances opioids to balance the brain chemistry that causes the urges to steal.
While kleptomania can’t be cured, it can be treated. Continual treatment and caution is required to avoid kleptomaniac relapses. If you’ve been doing well under treatment and start to experience urges to steal, make an appointment with your therapist or support group as soon as possible.
Why We Lash Out!
It is human nature to sometimes lash out at others…
but we can learn to navigate our feelings without losing our center.
Each one of us has experienced situations where we’ve found ourselves lashing out at someone without meaning to do so. We later berate ourselves for losing control and feel guilty for treating the other person badly. And while it is human nature that our emotions and moods will get the better of us from time to time, we can learn to navigate our feelings and negotiate difficult situations without losing our center.
Often, when we lash out, it is because we are having a difficult time containing the emotions that are coming up inside of us. We may be feeling overwhelmed, afraid, frustrated, stressed out, or angry. Having these feelings boiling up inside of us can be very uncomfortable, and it is natural to want to release them. But when we release our feelings from our body by directing them outward and toward someone else, they inevitably impact the “innocent bystander” to whom we are directing this energy. They not only get the brunt of our anger, frustration, or stress, but also they can actually experience this energy as a physical force hitting their bodies.
When you find yourself in a situation where you are about to lash out at the person in front of you, try to center yourself by breathing slowly and deeply. A few slow inhales and exhales can help dissipate the intensity of your feelings before they escape you. Later, when you find yourself in a more reflective state, sit down for a moment; recall the feelings in your body just before and during your outburst; note where you feel sensations coming up in your body; and ask yourself if they are connected to any core issue or experience from your life. If nothing comes to mind, then revisit the situation again, exaggerating the details of what happened by
indulging in outlandish “what if” fantasies. Exaggerating events after the fact can help expose the unconscious subtext behind your heated response.
Understanding the motivation behind your reactions can help you avoid lashing out again when a similar situation comes up. In learning to navigate around your emotions, you are giving yourself the tools to feel better the next time your emotions start to boil. In doing so, you will be taking care of yourself by alleviating your own uncomfortable feelings while respecting and protecting those around you.