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The Bad News: Shocking Statistics from F.B.I. and Department of Commerce

The U.S. Department of Commerce estimates 50 billion/yr. as the cost of employee theft to business (excludes embezzlement, fraud and arson). The Amer. Soc. Industrial Security pegs it at 100 billion. The F.B.I.’s estimate is shrinkage alone of 10 – 150 billion (excludes other crimes) and total of 700 billion (includes embezzlement and fraud). We will use 100 billion as a reasonable summary of these. Employee theft is roughly one-half of the total, the rest being external theft, burglary and vandalism. This brings the total to 200 billion. Adding phony worker’s comp and slip and fall claims increases the figure to 300 billion per year. Not included in the figures are the victimized company’s resultant lost administrative time, lost production time, possible loss of business, added maintenance costs, expenditures on security and increased insurance costs. As a reasonable guess at those costs we will increase the 300 billion to 375 billion. This means that if you have 75 employees and 7.8 million revenues your share of victimization on average is $187,500 per year. You are probably not aware of most of it as will be explained below. This is 2.4% of your gross business revenues. This is a conservative estimate. The U.S. Chamber of Commerce estimates that theft, arson, sabotage, vandalism and related crimes cost businesses 5% of gross. The U.S. Small Business Administration estimates shrinkage alone as more than 4% of gross.  

Read more about crime statistics and the good news that your return on investment in security is very high.


The Crime Scene: Actual Crimes per Day and Per Square Mile in a City

The City of Philadelphia averages 573 crimes per square mile every year.  There are over 1,700 violent crimes and over 5,000 property crimes committed every month.  Learn more.

The Crime Scene: The Mindset of a Vengeful Employee 

Authorities in Stone County have charged a former employee of a business with arson in connection to a fire that caused over a million dollars worth of damage to the business, and the employee admitted that he wanted to do even more damage. Read more.