Employee Fraud — Large Companies Hit Hard

A survey of risk managers at companies with at least $500 million in annual revenue, found 80% of them experiencing employee theft, fraud and embezzlement. The report notes threats driven by AI is melding with traditional schemes.

Billing fraud tops the list for 36% of the respondents. Check fraud impacted 23% of the firms and 19% cited payroll fraud as the top issue. Cash and non-cash theft sat at 23%.

Data from the Association of Certified Fraud Examiners issued in 2024 found median losses to be $145,000 per case and losses averaging $1.7 million per year from fraud. It also notes organizations earning $500 million will see losses at 5% — or $25 million.

AI-related risk is now the biggest concern of risk managers with 94% worrying employees are using AI tools to commit their crimes.

The Coalition Against Insurance Fraud has statistics showing costs to Americans of about $308.6 billion each year.

Source link: Aspen Claims Service — https://bit.ly/4uiJ49K