December 12, 2008

BIRMINGHAM, Ala. - A survey released Dec. 11 by the Institute for Corporate Productivity Inc., in conjunction with HR.com, shows 20 percent of employers polled in November report workplace fraud or theft has become a moderate to very big problem in recent months. UAB associate professor of accounting Tommie Singleton, Ph.D., said the report reflects the traditional trend of economic recessions leading employees to take desperate measures.

"You take any time of economic slowdown and more people are pushed toward attempting fraud out of desperation or because of financial pressures," Singleton said. "A spouse losing a job or the credit card interest piling up are two of what could be a number of reason that could cause someone to rationalize stealing from their company."

In 2007, companies lost an average of close to 2.5 million dollars in fraud, and Singleton believes the numbers in 2008 will easily surpass that level. The Dec. 11 survey polled 392 managers and executives at U.S. companies. Those polled reported theft increases of all kinds from monetary to stolen retail products and office supplies.

"The research collected over time shows that it is the companies of smallest size, with 100 employees or less, that report the highest incidents of fraud," Singleton said.

Singleton said employers become targets because employees understand the inner workings of their businesses. Employees can manipulate financial numbers or create opportunities for profit more easily than someone from outside a company, Singleton said.