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Corporate Research and Investigations (Pvt.) Ltd.
News & Updates
January 14, 2009
Employee Fraud And Theft Cost Firms $40 Billion Yearly

Employee Fraud, Theft Cost Firms $40 Billion Yearly

As many as one-third of all business failures annually can be attributed to employee theft, according to the U.S. Department of Commerce.

The cost of theft and fraud to American business nationally hovers around $40 billion a year, and "some experts believe as much as 40 percent of the losses are internal," said Tim Zehring, a retired Mesa police officer and director of the International Crime Free Association.

The Commerce Department also says employee theft is on the rise, thanks to the recession, a fact confirmed anecdotally by several Phoenix-based security experts.

"In my experience, what we're seeing is an increase, partly because some employers are more aware," Daniel Perez, head of Subrosa Investigations, told the Arizona Republic. "But it's also true that when some people feel in need, they will take what they believe they can."

Perez said that the effect of hard times can contribute to employee frustration and, coupled with some feelings of entitlement, can lead to a sense that "it's not really stealing."

"It's need plus opportunity plus rationalization," agreed Don Hesselbrock, president of Corporate Security Systems Inc. "People say, 'I worked hard and the company was bought out or merged; I got laid off anyway.' It gives some people a kind of cynicism and a 'get-what-you-can' attitude."

Rick Lew of Scottsdale's Core Security Consulting said, "Businesses need to take the time to assess and address the problems. Usually, companies know the problem but haven't addressed the issues."

The Arizona Republic reports that theft ranges from petty pilfering of a company supply closet to cash siphoned from payroll accounts to pay personal bills to warehouse items that "walk away" during the night.

Critical problems identified by security professionals included business owners' willingness to rely on "gut feelings" in making hiring decisions, a failure to adequately check references or do background checks, a lack of random audits of either company books or warehouse items, and an assumption that employees, especially long-term employees, will protect the company.

Often, these professionals said, employees may be aware that other employees are engaged in theft or fraud but are reluctant to report it. If a problem seems to be relatively minor, many business owners and managers will ignore it.

Additionally, many employers choose not to prosecute when theft is discovered. Many prefer instead to terminate the employee involved and attempt restitution through private arrangements.

 

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January 14, 2009
CRI Middle East LLC Opens Office In The Dubai International Financial Centre.

Corporate Research and Investigations LLC (CRI Middle East LLC) (www.cri.ae), a subsidiary of Corporate Research and Investigations (Pvt) Limited and a leading provider of investigative research services, today announced the opening of its offices in the Dubai International Financial Centre (DIFC).

 

For the past 20 years, CRI Group has been safeguarding clients across the Asia Pacific, South Asia, the Middle East and North Africa by establishing the legal compliance, financial viability and integrity levels of outside partners, suppliers, customers and other sources seeking potential business affiliations.

 

Nasser Al Shaali, CEO of DIFC Authority said: "The ability to effectively pre-empt corporate crimes and conduct timely investigations of crimes and malpractices can save corporations from huge potential losses and reputation damage. Reliable providers of corporate investigative services like CRI can significantly help corporations in dealing with crime, fraud and malpractice.  CRI's expertise will add to the diverse pool of business support services available within the DIFC."

 

Zafar I. Anjum, CEO of CRI Middle East, commented on the advantages of utilizing a business investigations firm in an expanding global economy.

 

"Today’s business climate dictates an increasing demand for proactive measures designed to reduce the exposure of international business organizations to economic crime and civil wrongs, particularly in the financial, government and multi-national business sectors,” Anjum said.  “CRI's worldwide network of multi-disciplined investigators helps organizations prevent and deter business crimes, employee malfeasance, threats and accounting fraud while ensuring our clients conform to DIFC regulations and UAE laws. The establishment of our offices in the Dubai International Financial Centre gives us the platform to expand our business further and enhance the level of support we offer to the international business community."

 

CRI’s level of professional services spans fraud and white collar crime investigations; business intelligence and investigations; employee, vendor and supplier background investigations; due diligence and “Know-Your-Client” inquiries; insurance fraud investigations; Special Investigation Unit (SIU) services; Risk Management and Corporate Security Consulting; and skip tracing and debt collection services.

 

Contact CRI at +971 4 3370737 or by email at info@cri.ae
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December 30, 2008
Operational Risk Management Forum 2009
CRI

Corporate Research and Investigations LLC will be exhibiting at the Operational Risk Forum. This event will be of value to any practitioner wishing to stay at the cutting edge of banking operational risk efficiency; it will be of particular relevance to those business leaders working in the following:

Institutions: Banks & Financial Organisations, Insurance Company, Asset/ Investment/ Fund Management, Central Banks & Regulators, Legal Lawyers & Consultants, Rating Agency, Software & Technology Providers

Departments: Risk Management, Operational Risk Management, Compliance, Business Continuity Planning, Internal audit, Anti Money Laundering, Basel II compliance, Operations, HR, IT. For further information and to download the brochure Operational Risk Management Forum.
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