According to a comprehensive report by the Association of Fraud Examiners, 81 percent of fraudsters displayed one or more behavioral red flags before their crimes were detected. There were 220 reported cases of fraud in the Asia-Pacific region in 2018, with a median loss of $236,000. Fraudsters in the Philippines were responsible for 25 of these cases.
Only 15 percent of companies who had been defrauded recovered all of their losses.
Corrupt employees jeopardize a company’s profitability and reputation, which can be equally damaging. Without assistance from expert pre-employment testing companies, applicants with questionable integrity or ethics can find their way into your ranks.
Aptitude presents three types of employees who threaten your company’s stability and integrity.
1. Problematic Gamblers
Although legal gambling by itself is rarely harmful, it can lead to someone developing an unhealthy obsession in winning more and more games. This is called “problem gambling,” and a person under its influence is bound to head into misfortune.
Problematic gamblers aren’t satisfied with winning once, they need to win consistently to achieve a psychological state of joy and satisfaction akin to drug use. However, casinos and other gambling establishments know that the odds are not in favor of players. They’ll eventually lose more money than they’re able to win back.
As problematic gamblers lose more money to their addiction, they need new sources of revenue. They may start by cutting down on essentials before turning to illicit sources of income. Employee theft is one of these options.
Problem gamblers are hard to detect because unlike substance abusers, there are no outward signs of their addiction.
2. Substance Abusers
Substance abusers refer to people who are addicted to alcohol or narcotics. In the United States, officials estimate that people spend $81 billion every year abusing drugs In the workplace.
Just like problematic gamblers, substance abusers may turn to corporate fraud to fund their addictions if their legal cash flow is insufficient. However, substance abusers also harm your company through other means.
As their addictions take their toll on their physical and mental health, substance abuse eventually will affect performance. They may fail to show up at work on several days, or compromise the quality of their work.
Finally, there is the risk of a substance-abusing employee turning up at the workplace while under the influence. Not only can they endanger themselves, but they could also harm or impede other employees or cause discomfort to customers.
3. Dishonest Employees
Being deceptive is necessary for someone who wishes to defraud their workplace, but the effects of corporate dishonesty don’t stop at financial trickery. Deceptive employees build up personas that mislead others, both colleagues and superiors, about their true intentions and capabilities. They could end up assigned to positions they’re not suited for.
Even worse, their deceptions erode the fundamental foundation of trust essential in every company. Without that trust, your employees won’t be able to function cohesively, possibly lowering business productivity.
Loyal and honest employees are the building blocks of a successful enterprise. If your goal is to transform your company into one of the biggest power players in your industry, you’ll need to make sure your foundations comprise only of the most reliable employees.
In our nest article, Aptitude discusses possible methods of preventing corporate theft. Find out how we can improve your hiring process today.