Crimes committed against a business can result in devastating financial loss, especially without crime and fidelity insurance coverage. Business crime can happen in the form of burglary or shoplifting, but also as a result of employee fraud, theft, or embezzlement.
The typical crimes committed against business by employees include:
- Theft, or “skimming” of cash
- Theft of inventory, merchandise or equipment
- Writing company checks
- Falsifying revenue reports
- Processing fraudulent invoices
- Customer identity theft
- Money laundering
- Intellectual property theft
- Credit card fraud
- Overstated expense reports
- Payroll fraud
The U.S. Chamber of Commerce has reported in the past that employee dishonesty typically accounts for about 30% of small business failures, also stating that small business are 35% more likely to become crime victims than larger companies.
So what can businesses do to stay aware of any suspicious activity? Monitoring employee behaviors, especially radical changes in their lifestyle, could indicate fraud activity. For example, an employee suddenly purchasing a luxury car or boat could be a red flag. Prevention may not always be possible, but detecting crime in the early stages and having the appropriate insurance coverage could limit the financial damage your company incurs.
At Tri-State Insurance Agency, we offer fidelity bonds that protect your company from fraud, theft, embezzlement and other dishonest acts committed by bonded employees. We also provide a comprehensive business insurance portfolio for companies throughout Pennsylvania, northern New Jersey, and New York. Give us a call today at (888)990-0526 for more information.