Category: Liability
Unusual News
February 11, 2019Employee theft and employee dishonesty cases can follow similar patterns. Employees often steal merchandise, cash, or make personal purchases using company credit cards. But some cases stand out either because of the amount of loss or the method of misappropriation. Here are five over-the-top examples of in-house theft and employee fraud: The Jury Duty that Wouldn’t End Joseph Winstead, a Washington, D.C. postal worker, managed to steal $40,000.00 in unearned wages from the USPS over a total of 144 days.…Smash, Grab & Run
January 28, 2019High-end jewelry and precious gems top the list of targets for organized and opportunistic criminals. Grab-and-run losses are all too common in the jewelry industry. Jewel thieves typically use overt and covert surveillance to gather intelligence before committing their crime. They rely on speed, distraction, store layout, and lax security procedures. While it may be nearly impossible to prevent every jewelry store burglary, robbery, and theft, implementing crime prevention strategies can help reduce the opportunity for theft and reduce the…Local Versus Global Brand for Auditing Firms
December 5, 2018On March 8, 2017, the Wall Street Journal published an article about KPMG being under fire for scandals in the U.S., South Africa, and the U.K. Although KPMG does face trouble on three fronts, the scandals involve three legally separate firms: KPMG, LLP, a New York-based U.S. partnership, is dealing with the indictment of former partners on charges they helped steal secret regulatory information. KPMG’s local affiliate in South Africa faces a criminal complaint and scrutiny overs its ties to…Inventory 101
April 26, 2018When a company’s inventory count comes up short, the hunt for the missing inventory begins. Are employees are stealing from the warehouse in the middle of the night? Is a dishonest bookkeeper recording fictitious purchases and pocketing the difference? Possibly. But while employee theft may be the reason, less nefarious causes might be to blame. Defining & Tracking Inventory Inventory can be defined as the raw materials, work-in-process products and finished goods considered to be the portion of a business's…What is Your Roomba Vacuuming Up?
March 29, 2018Facebook, Bluetooth, the iPod, "smart" televisions: innovations in the past few years have transformed the way we live. Nearly two-thirds of Americans own a smartphone. By 2020, it is expected each person worldwide will have more than six connected devices on average. The “internet of things” is a technological development with an increasing presence in our daily lives. The internet of things refers to the ability of everyday objects to send and receive data and connect to the Internet. If…Establishing a Company Social Media Policy
February 1, 2018Richard Hy, a New York policeman, found out the hard way that joking on social media about stealing cocaine from the evidence room was a bad idea. Hy was suspended without pay. A waitress was recently fired for posting complaints about a customer on Facebook. A woman lost a job offer at Cisco because of comments she made on Twitter. Social media sites, such as Facebook, Vine and Twitter, represent potential pitfalls for both employees and businesses. Employees need to…The Face of Fraud
November 30, 2017Crime tends to require three elements: motive, desire and opportunity. Employee theft is no different. Being aware of the reasons leading up to employee theft and learning to identify likely perpetrators can give employers a leg up on protecting their companies from theft. Motive & Desire Employees who steal usually have their motives. For example, Tom has been with the company for three years and is still making the same salary. He feels underpaid and undervalued. Becky just missed getting…Keeping Hackers Out
September 12, 2013Cyber Liability & Prevention In April 2011, Sony’s online gaming network was hacked, compromising the personal and credit card information of 77 million users. The network outage lasted 23 days and cost Sony $171 million. A class action suit has charged Sony with negligent data security, unauthorized storage and retention of data, and failure to properly encrypt data. News stories of company data breaches are common these days, although perhaps inflated. The Economist[1indicated the survey and statistical extrapolations for determining the…