Employee crime on the rise

Canadian insurance companies, are going to be considering the rise in economic crime in the last year. There was a survey done by PricewaterhouseCooper, which gave some interesting results. In Canada, 59% of companies were hit by economic crime in the last year. The same survey showed that 38% of the frauds, were perpetrated by the employees.

Globally the statistics differ. External individuals were responsible for 44% of economic crimes, with 53% being internal individuals. The industries that are being hit hardest are insurance, communication, hospitality, leisure and financial services. It is believe that these industries become targets of fraud, due to the nature of their service or product.

How is the fraudster caught? In the past 12 months, 38% of the Canadian companies who were fraud victims, said it was detected by tip-off, either external or internal, or by chance. Preventative fraud risk management techniques, detected a further 17%, and the balance were determined by internal audit.

Insurance offers crime coverage for employee dishonesty. Are you vulnerable? If so, consider upgrading your risk management techniques in this area. Possibly increase your level of coverage, to adequately cover the risk you cannot avoid completely.

Talk to your agent or broker, about what is best for your particular business. Everyone is a bit different in their needs, and a "rubber stamp" package may not be in your best interest.