Employee fraud is a global epidemic – much more than merchants may realise.


Employee Fraud

Employee fraud is a global epidemic – much more than merchants may realise.

UK retailers saw £770 million stolen by employees

Source: Global Retail Theft Barometer 2015

  • 7% of annual revenues are lost to theft or fraud
  • 75% of employees have stolen at least once from their employer

Source: Association of Certified Fraud Examiners, Easy Small Business HR,

The total value of reported fraud in the UK reached £798m in the first half of 2015. 32% of fraud is committed by employees, costing organisations £46m.

Source: BDO 2015 interim Fraudtrack report

Employee theft makes up more than 30% of all fashion theft.

Source: http://www.retailfraud.com/latest-studies-hint-at-retail-employee-theft-cover-up-2/

81% of frauds affecting companies involved an insider in 2015

Source: Kroll Global Fraud Report 2015-2016

Employee Theft and Shoplifting account for more than 75%of shrinkage

Global Retail Theft Barometer 2015

Although the average cost per incident of employee theft fell by

14% in 2013/14

to £1,031, this was still the third highest average value recorded for nine years.

Source: http://www.ssg-net.com/employeetheft-average-says-report-british-retailconsortium/

Best practice

  • Know your employee:

    Ensure you employ the right people by scrutinising applicants before hiring them

  • Support your employees:

    Provide regular fraud training and awareness to your staff

  • Be strategic:

    Make prevention a priority, and have a fraud prevention strategy that includes use of sound inventory practices.

  • Promote your culture:

    Get to know your employees and set clear expectations supporting a no-fraud culture