| | | | | stole had a stronger expressed belief in the |
| According to the Association of Certified Fraud | | | | wrongness of theft! |
| Examiners, frauds due to financial pressure during | | | | Over a period of 21 years, my investigative staff |
| the recent economic downturn have increased. | | | | & I completed more than 12,500 |
| While this claim is not surprising, it may also not | | | | apprehensions of employees, suppliers and |
| be accurate. Certainly, frauds and thefts have | | | | customers relating to theft and fraud. The most |
| increased in the past two years. But they have | | | | common items stolen were not hamburger, warm |
| also increased almost rhythmically over the past | | | | clothing, baby food, pharmaceuticals or the |
| 20 years. | | | | essential items. The most common items |
| There is an underlying inference that fraud and | | | | shoplifted or stolen by employees were |
| theft are caused by hardships. This is completely | | | | cigarettes, beauty items, high-end meats and |
| untrue. | | | | fancy household & personal accessories. |
| When I entered the investigative field in 1979, I | | | | These goods represent thefts of greed, not of |
| operated on the assumption that seniors did not | | | | need. |
| steal unless they were in great need, that most | | | | As an illustration of the power of opportunity, I |
| thefts were caused by low-income people, and | | | | routinely placed three five-dollar bills at strategic |
| that workplace fraud & theft was an | | | | locations during my public seminars on theft and |
| uncommon occurrence. | | | | fraud. One bill was placed at the podium where I |
| What I discovered was that the wealthy were as | | | | stood. The second was placed at the back of |
| likely to shoplift as the poor, that the items that | | | | the room, on the snack & coffee table. |
| were stolen seldom represented "needed" | | | | The third was placed on the floor outside the |
| merchandise, and that workplace theft was more | | | | seminar room door. In every seminar but one, |
| common than external theft. | | | | the $5 outside the seminar meeting room was |
| Theft and fraud are nothing but crimes of | | | | taken, and not turned in to the seminar leaders, |
| opportunity. | | | | even though this event was often the only one in |
| In 1990, I arrested a female cashier at a | | | | the building. In more than 70% of the |
| pharmacy that admitted to stealing more than | | | | presentations, the $5 on the coffee table |
| $35,000 from her employer over a period of 13 | | | | disappeared. The $5 on the podium never was |
| months. What enabled her to do so? Her | | | | taken. This provided a clear illustration of the |
| employer was also taking cash from the cash | | | | power of opportunity, not the power of need, as |
| register, to feed his gambling habit. | | | | every attendee was a business manager or |
| Consequently, there was no accountability, and, in | | | | owner. But why did the $5 at the door not get |
| tandem with the lack of controls, there was an | | | | stolen on one occasion? In that community, |
| abundance of opportunity. Why did she steal, | | | | there was a strong moral ethic governed by the |
| however? More than $25,000 of the money | | | | predominantly Mennonite residents. Everyone |
| was sent overseas to her family in Saudi Arabia, | | | | knew everyone else. So, there was no |
| who were moderately affluent. | | | | opportunity? But that begs the question, Why |
| In 1992, my company took part in a study on | | | | did no one turn in the bill? Perhaps each was |
| theft prone personalities, conducted by | | | | waiting for an actual opportunity to take the |
| psychologists Frank McShane and Barry Noonan. | | | | money! |
| This study found that there was no statistical | | | | Economic stress is only one factor in theft & |
| difference in income or education levels of those | | | | fraud behaviour. So, clearly, there is more at |
| that stole versus those that did not. However, | | | | play in the fraud increases during the economic |
| there was one area where there was a marked | | | | downturn than just the tough times alone! |
| difference between the two groups: those that | | | | |