On average, companies lose around $500 billion dollars per year on white-collar crime in the United States. The average company loses at least 6 percent in total revue for the year, and thousands of innocent employees lose their jobs and life savings as a result. In order to protect your money, is important to understand a few of the big white-collar crime trends that have emerged in recent years.
It’s not just at the big companies anymore
When people think of white-collar crime, they tend to think of Enron, Bernie Madoff or political cover-ups. However, the majority of white-collar crimes today occur in companies with less than 100 employees. Although employees are not stealing large sums of money at one-time, white-collar criminals tend to cost companies thousands to millions of dollars over a duration of years.
People say they will pay back the money
Commonly, companies today will provide employees with a company card for business expenses. With the number of remote employees and employees traveling for work, this practice has become a necessity. However, it can tempt employees into using the company’s money for personal reasons. For instance, employees might use the card if they forget their personal card at home. Employees might justify their actions by telling themselves that they will repay the money. However, if no one notices and they forget to repay the money, it can easily become a habit.
Prosecution at all time low
White-collar crime prosecutions are at their lowest level in the past two decades. Since 1988, white-collar crime prosecution is down over 40 percent. There are many reasons for this, such as the lack of incentives for whistle-blowers to come out and the need to increase financial support to government agencies that investigate these crimes. Additionally, white-collar criminals benefit from better representation and lenient regulatory procedures not normally given to individuals in lower socioeconomic classes.
It is important to remember that white-collar crime is not without consequence to others. The greed of one person can wipe away people’s livelihoods, life savings and even children’s college tuition. Don’t let this happen to you. Make sure you protect your assets and look for the sign of internal theft and white-collar crime in your company, so your money is safe when you need it.