Report: Employee Theft on the Rise

" all the fraud headlines but there is -- other perhaps bigger problem in America workplace. Fraud yet the numbers for Madoff were staggering but if you add up all the incidents of workplace fraud. You might get even some bigger figures and guess what. At number is on the rise Louis -- CEO of the network. And he joins us now out of Atlanta mr. Ramos thank you very much for joining us I was looking your data that you sent overnight. It looks like workplace fraud people stealing for their employer has doubled. In just a matter of a couple of years."

" That's right Brian by the way thank you very much for coming on the program this morning it's a pleasure. -- that the sense -- we're seeing show that. That number has gone from about 10% of and reported incidents to about 21% reported incidents so little more than doubling. In about a -- happier time -- for its -- staggering. Now it's reported so does that mean do we know -- crime is actually going up or just people getting caught or turning and others more. That's a great question we're finding is that I think that you have a little bit about we're seeing some -- unfolded. A study recently that -- The -- global study every year they're finding that the cost of fraud in the trailing three years has gone up 20% so they're saying. -- fraud is simply costing more than it was costing before and that's a lagging indicator so that means that no as you start getting into the the kids out here you're going to find that that number probably even higher so on the back and we know it's costing more on the front -- we're seeing that more reports are being made that can be driven by a couple of things one is that more fraud is happening. The other is that employees are more likely to report fraud in some cases because they're concerned. That if their company is losing its assets that they are at risk of losing their jobs so the fear of the economy I think is driving. Both more incidents of fraud as well as more reporting of fraud where employees are more willing to tell on their colleagues if it's gonna save their job."

" Yeah I -- we look at the data here I guess the good news that things like sexual harassment claims they're flat or even falling so at least. We have some type workplace behavior that seems to be on the wane the problem is. I guess simple theft right I mean just people literally taking money or goods. From their corporation."

" That's what surging. That's exactly right and and the numbers as you mentioned before you know that the made up numbers fifty billion dollars it's you know horrific. But if you add up the numbers when you look at work place fraud the estimates are somewhere in the neighborhood of 994. Billion dollars so. Nearly a trillion dollars going away because of fraud and US companies. And as you said it is a lot of it is just you know stuff walking up the back door its people you know giving away things have been with somebody finally took -- their pocketbook."

" And -- you're citing the association of certified fraud examiners AC FP. At last -- correct about -- 1000000000994. Billion dollars. Was lifted from companies. That's exactly right Brian so that is few and Canadian dollars exponentially. Greater. Than made off even the highest estimates and made off. Yet has gotten almost no attention how -- I."

" Think it gets no attention because it happens a few dollars at a time. So there's no one stealing you know millions and millions of dollars who gets the attention of someone who has no walking away with -- her or me or keeping some money out of cash register in the pocket. But all that eventually adds up until it's tremendous strain on companies. On the economy as a whole. I think."

" I think he knew about it in the problem too I imagine and maybe this is completely wrong if it is Tellme. The smaller companies mom and the ones that are hurt the most by this kind of behavior are probably the most vulnerable because they don't have the extra capital to put safety measures in place."

" Since it is that a fair statement you're. It is a fair statement because they do what happens -- your. You rescue can they do and that's -- great question because that -- what were we find is that is that the best way to attempt to help deal with fraud is to prevent it in the first place and to prevent it. They're making sure that you have the mechanisms in place to detective so putting in place was more hotlines hopping place -- and communications campaigns to let your employees know not only that you're looking out for fraud but also for further vast majority -- we population who would never do this and who. -- is is honest and hardworking. They can also know what to do if they identify fraud -- we've seen you know. I think it's not keep him do you doesn't integrity study every year and their study showed that 74% of employees have either witness I have first hand knowledge. Of fraudulent activities helping the workplace if you give those employees a mechanism to report that they're going to tell you."

" That we're doing the peace and corporate security and a blue screen comes up that -- video alarm detective. You can't make that stuff up its live TV. Lewis if you're out there in TV land -- from a -- of the network corporate compliance firm great stuff you can hear me thank you very much well she should email."