How Theft Is Draining Your Business’s Finances And What To Do About It

It’s no secret that businesses have to spend a lot of money to make money. That’s all part of the game. They have to hire staff, spend money on equipment and advertise.

But sometimes those resources aren’t going towards something useful. They’re being stolen. In this post, we’re going to investigate some of the ways that businesses are having their finances drained by theft. Then we’re going to discuss what they can do about it.

Employee Theft

Each year hundreds of thousands of employees steal from the businesses in which they work. The costs for businesses are high. In the US, around $50 billion is stolen from businesses each year by employees. That’s enough to buy ten nuclear submarines.

But what’s perhaps more staggering is the amount that is stolen in each instance. According to figure from Statisticbrain.com, about a quarter of thefts are of amounts greater than $1 million. What’s more over 60 percent of thefts are for amounts greater than $100,000. Thus, the impact is not shared evenly across companies. Rather, it is concentrated in one firm, representing a terrible threat.

If you suspect that an employee is stealing from your company, the best defence is to hire a detective agency. These agencies specialise in rooting out who is responsible for the theft of cash or stock on your premises. And they’re able to gather evidence that will help you to convict an employee of wrongdoing in court. What’s more, they represent good value.  After all, you’d rather be getting on with the job of running a business than spying on employees.

Intellectual Property Theft

The economy of the twenty-first century is knowledge based. Each year, the proportion of GDP based on knowledge work rises. And as a result, intellectual property has become a lot more important.

The problem is that other companies often don’t respect your intellectual property rights. Just think about what we’ve seen in digital media, like music and movies. This intellectual property is shared all the time over peer-to-peer networks. And this damaging the underlying businesses.

Protecting your intellectual property should be a central goal of your company. The first thing to do is to make sure that you have legal representatives who can enforce your rights. But it’s often not clear whether your property has been infringed upon. Again, this might be a case where you could hire a private eye. You need to make sure that another company isn’t using your patented processes illegally. This is especially true if that company is based overseas.

Customer Theft

Each year in the US, thousands of customers steal from the companies that they buy from. The costs of this theft rise into the billions. That’s why companies of all stripes need to take steps towards protecting their cash and their inventories.

Companies are at risk in each stage of the supply chain, from assembly to delivery to retail. Thus at each point, security has to be a priority. Businesses must install CCTV in retail, keep records of deliveries and protect their warehouses.

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