Survey on CFOs finds many encounter fraud in the workplace

Posted by Kristina Taylor
April 3, 2012

Survey on CFOs finds many encounter fraud in the workplace

With background checks and other pre-employment screening methods on the rise, one would think the incidence of committing fraud in the workplace would be declining. Not so, according to a recent survey of Chief Financial Officers of private equity and venture capital firms.

The survey, conducted by business investigations firm Corporate Resolutions, Inc., found that 39 percent of CFOs who responded to the survey had encountered fraud during their tenure as CFO within their own firm or at a portfolio company. And 81 percent had decided not to invest in a company because of suspected fraud or other integrity issues.

Such numbers underscore the importance and relevance of background checks as part of a healthy company’s investment in its own future. It’s not enough to blindly trust employees, particularly ones who have some hand in and handling of the company’s finances. Sixty-seven percent of CFOs surveyed had encountered asset misappropriation, and 17 percent had discovered corruption of some kind.

In today’s global economy companies sometimes hire people overseas or across the country without ever actually meeting them and shaking hands. While long-distance hiring is a normal part of 21st century business, the practice makes conducting due diligence on every viable employee candidate more important than ever.

 

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