ARTICLE
White-Collar Crime: Do You Have a Safeguard?

According to a report by the Association of Certified Fraud Examiners (ACFE), six percent of revenues are lost to occupational fraud and abuse, otherwise known as "white-collar" crime. Applied to the U.S. Gross Domestic Product, this translates to losses of approximately $600 billion, or about $4,500 per employee in 2002.

White-collar crime is categorized into three areas: asset misappropriations, corruption, or fraudulent statements. Over 80% of occupational frauds involve asset misappropriations, where cash is targeted 90% of the time. The average fraud scheme lasts 18 months before being detected.

Losses caused by executives and managers are nearly four times as costly those caused by employees. Small businesses (those with fewer than 100 employees) tend to be hit the hardest -- the average fraud scheme in a small business causes $127,500 in losses, while the average scheme in large companies costs $97,000.

Background checks, along with strong internal controls and regular audits, can significantly reduce fraud losses. InfoMart's Criminal Department serves as a safeguard that shields companies from hiring employees that have already been caught stealing. This service gives companies assurance that applicants are crime-free prior to making costly, irreversible hiring mistakes. For more information on InfoMart's background screening services, please contact 770-984-2727 or sales@infomart-usa.com.

(Source: Association of Certified Fraud Examiners' 2002 Report to the Nation)