Welcome - BusinessTheft.com
Business theft - it couldn't possibly happen to your business. Could it? Chances
may be greater than you think. Jack L. Hayes International, a leading loss
prevention and inventory shrinkage control consulting firm, released a survey
showing that over 530,000 people were apprehended for shoplifting and employee
theft in 2006, recovering more than $116 million that would have been lost to
business theft and fraud.
Those statistics only cover shoplifting and employee theft from 23 major
retailers. If major retailers can be hit by theft, business fraud, and
embezzlement despite their business security measures, theft becomes a very real
risk small businesses need to consider.
What are Business Theft and Fraud?
When you hear the words "business theft" or "business fraud,"
what do you think of? Armed robberies of a local convenience
store? Kids shoplifting? Employee theft like the embezzlement of
large sums of cash? The most obvious forms of business theft
aren't always the most common forms, which is why loss
prevention and theft protection practices need to vary greatly
from business to business, or at least industry to industry.
Even if your business has no physical merchandise publicly
available to customers, or no face-to-face cash transactions
(meaning no cash on-hand in a cash register or safe that would
attract robbers), you may be susceptible to other forms of
business theft and fraud. In fact, even in the case of retail
theft like shoplifting, the U.S. Small Business Administration
(SBA) estimated in a 2008 report that two thirds of business
thefts are employee thefts rather than thefts or fraud committed
- Retail Theft - Shoplifting
- Retail Theft - Under-Ringing Merchandise / "Sweethearting"
- Employee Theft - Embezzlement of Cash
- Employee Theft - Merchandise / Inventory
- Employee Theft - Supplies
- Employee Theft - Intellectual Property
- Identity Theft
- External Intellectual Property Theft
How Big of a Risk is Business Theft?
Are business theft and fraud really a big problem for small
business owners? How much damage to the overall health of your
business can fraud and theft really cause? According to a 2004
article in The Colorado Springs Business Journal theft and
fraud can actually do quite a bit of damage - business theft
takes around ten percent out of every sales dollar nationwide.
That doesn't mean ten cents are lost out of every dollar of
profit. It means ten cents are lost out of every dollar of
sales. Therefore, if your business does $10 million in sales
throughout the year, on average your business will lose $1
million to business theft.
Now compare that total dollar value lost to your profit
(likely significantly less than your total sales figures), and
you'll form a better appreciation for the impact business
theft can have on the small business owner.
Imagine an embezzlement case where an employee steals $1
million from your company. That might be easy to catch.
Unfortunately, most business theft accumulates from smaller
cases of theft and fraud (whether it's merchandise, cash from
the till, or theft of supplies), and that theft can be harder
to catch. Because many thefts and types of business fraud are
difficult to catch (like smaller instances of retail theft),
businesses often account for the expected losses by raising
end prices to customers.
Between the basic dollar loss and the fact that businesses
have to raise prices (making them less competitive), it's no
wonder the SBA reported that nearly ten percent of businesses
filing for bankruptcy cited a business calamity such as
business theft or fraud as a cause of their financial
difficulties. To make matters worse, not all business
insurance covers losses resulting from business theft.
BusinessTheft.com Has Your Business Covered
No matter what type of business you run, BusinessTheft.com is your
premiere source of information on loss prevention and business theft
protection. Arm yourself and your small business with the best
information available to minimize your risk of employee theft, fraud,
shoplifting, identity theft, intellectual property theft, retail theft,
At BusinessTheft.com, you'll learn about:
- The employee screening process (employee background checks) to
decrease employee theft.
- Business security and loss prevention measures you can implement
right now to cut down on internal fraud and external retail theft
- Theft protection through small business insurance.
- And more to help your business combat external as well as internal
Learn how you can prevent business theft today!