America has more work-related crime including employee theft than other countries

Employee Theft

Employee Theft

Checkpoint Systems, a company that provides software and hardware solutions for the retail industry, released a report on Nov. 8, 2014 that finds American employees steal at a higher rate from their employers than workers in other countries except Argentina, according to MarketWatch.com.

In fact, this report estimates theft caused a 27% increase in the cost of retail crime from 2013. A contributing factor is that other countries spend more on loss prevention while the US spent just 0.42% or about half of the global average of 0.80%.

Shrinkage is a term used by retailers that represents the difference between the revenue businesses should receive and the actual revenue they do receive. The losses come from shoplifting, employee theft as well as vendor fraud.

In the U.S. 43% of shrinkage is due to work-related crime. MarketWatch also reports that most of this theft happens during checkout or point of sale “when an associate purposely manipulates a transaction for the benefit of themselves or someone else.”

Workers have been known to issue refunds, discounts or voids at the register that they shouldn’t or cancel a transaction, modify prices, or say someone used a coupon when they actually didn’t. The cost of this kind of theft for US retailers ran $18 billion in 2013, according to the Checkpoint Systems theft barometer.

What’s interesting to note is that that report also states that a

None of this news surprises Tom Lawson, CEO APSCREEN and Negligent Hiring Expert Witness,  “This fact is thoroughly evidenced in recent years by multiple FTC actions against several of the large pre-employment screening industry players whose business models are continually challenged in courts of law mainly because they choose cost over quality and end up selling an incomplete background check that fails to unearth the kinds of criminal behavior that leads to these types of crimes.”

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