From pilfering an office stapler to making off with confidential customer lists, economic woes are driving more people to steal on the job.
Nearly a quarter – 22 per cent – of large U.S. employers think that monetary theft (like padding expense accounts or swiping cash) has increased since the economic downturn began, according to a November survey by the Institute for Corporate Productivity. Swiping stuff on the way out the door is also common. More than six in 10 U.S. employees stole company data upon leaving their jobs last year, according to the Ponemon Institute.
“Sometimes people will do dishonest things when they're under great pressure. And one of the basic drivers is a shortage of cash,” says James Hunter, Toronto-based national leader of KPMG LLP's forensic practice in Canada.
About 90 per cent of employee theft goes unreported or undetected, including theft of time (where people slack off or do personal pursuits during work hours), estimates Vancouver-based former RCMP fraud investigator Marv Steier.
Workplace thieves, beware. While the temptation to pinch stuff may grow as the economy worsens, cost-conscious employers are more likely nowadays to pay closer attention to any missing items, Mr. Hunter adds. “When a recession strikes, employers look closely at every line item, and that will bring things to light more quickly.”
As employers try to cut thievery and catch the thieves, the challenge is how to do it without becoming Big Brother. The loot
Pilfered goods can range from paper clips to cash, computers to confidential customer lists.
About one in five employees mooch office supplies, according to Spherion Corp.
But increasingly, experts say, people are swiping intellectual property – which can easily fit onto a USB drive.
Fiaaz Walji, Canadian country manager for IT security software firm Websense Inc., says the most common snitched data ranges from contact lists to confidential business documents.
Theft can also be less tangible – making long-distance calls on company time, or using employers' printers, says Terrence Shulman, founder of the Shulman Center for Compulsive Theft and Spending in Detroit.
Warning signs Sometimes, it's as simple as someone acting fishy, says KPMG's Mr. Hunter, who adds that many clients realize in hindsight there were warnings signs of deviant behaviour – not taking a vacation, suddenly getting a pricey new car, living beyond one's means or just subtle changes in behaviour.
There may also be customer and vendor complaints about outstanding balances or inexplicable shrinkages in inventory, says Sarah MacGregor, director with PricewaterhouseCoopers Canada's investigations and forensics services practice.
Mr. Shulman says signals include a growing disillusionment or frustration with work, getting passed over for a promotion or indications of poor money management skills.
Who's taking stuff?
Strangely, prime pilferers aren't always the underperformers at the company. “The irony is that, often, it's the star employee who is led away in handcuffs,” Mr. Shulman says. That's because reasons for stealing vary – from a sense of entitlement to supporting an underlying addiction or wanting revenge after seeing benefits and pay shrink.
Those most likely to steal tend to be people with patchy employment records, who try too hard to impress, have few roots in the community and poor money management skills, Mr. Shulman says.
In Canada, the typical perpetrator of fraud is male, between 31 and 40 years old and with high-school education or less, according to PwC.
Prevention The first step may be defining theft. Some workers might see taking pens as a company perk, says research analyst Michael Grohs of the Institute for Corporate Productivity.
Once boundaries are defined, employers should develop a policy about theft and the consequences – from termination to prosecution, Mr. Steier says.
Establishing a phone hotline for whistle blowers who see colleagues or managers stealing can be the most effective strategy, Mr. Hunter says. Other measures abound, from computer software systems that track inventory to video cams or physically safeguarding cash.
But “it is the culture of the company that is a true foundation of an effective anti-fraud regime,” Ms. MacGregor says.
What are people taking?
Most office workers – or 58 per cent of people – admit to sticky fingers. Among people who 'fess up to taking office supplies for personal use, the most commonly pilfered items are: Most commonly stolen office supplies:
Pens/pencils: 77%"Sticky" notes: 44%Paper clips: 40% Decorations like plants, paintings and office furniture: 2%
Popular items stolen include: Co-workers' belongings Computer or phone equipment Coffee packets Toilet paperBandagesConfidential files (Sources: 2006 survey conducted by Harris Interactive and commissioned by LexisNexis Martindale-Hubbell's lawyers.com; 2006 CareerBuilder.com survey)
