The most prevalent type of internal fraud within business organizations in The Bahamas is the stealing of company assets and inventory, according to an economic crime survey conducted by the Bahamas Chamber of Commerce and the Employers Confederation.
A significant number of those surveyed also felt that the economic downturn is the major contributing factor to increased pressures to commit fraud.
As a result, over 52 percent of the respondents said they have amended their economic crime prevention processes and controls.
According to the business groups, the survey aims to discover just how prevalent each of the areas of economic crime are really becoming, and to determine to what extent they impact businesses.
Chairman of the Chamber of Commerce Winston Rolle said the survey was sent to between 400 and 500 businesses, but he was unable to reveal how many completed it.
He said the Chamber will hold a seminar on November 28 to fully reveal the results.
“A lot of what we’re seeing based on that information is that it shows the significance of employee theft as it relates to the cost of doing business,” Rolle said.
“I think the one thing I was most surprised at was the low number of [businesses] that actually prosecute [thieves].”
According to the survey, only 8.3 percent of respondents routinely take criminal or civil actions against internal fraudsters.
“I totally understand the reasoning for it,” Rolle said.
“When you start to prosecute, not only does it cost you additional resources in terms of time and money to deal with lawyers and the courts, but also depending on the nature of your business, [it] can have a negative connotation in the public’s eye as it relates to doing business with you as well.
“Most businesses tend to avoid press like that.”
Nearly 73 percent of respondents to the survey see a firm networking system with the police and other prosecution agencies as a fundamental necessity for the prevention and detection of economic crime.
“One of the things we’re hoping to come out of the conference is exactly that. We want to establish a forum with an open dialogue with police on a quarterly basis so that we can be able to discuss trends,” Rolle said.
By establishing a relationship with the police and other businesses, a business person can ask for help on an issue he or she has no experience with, Rolle said.
“There are things we can utilize the police for that a lot of businesses aren’t utilizing them for,” he said.
“For example, [if] you go to hire a person and ask for a police certificate, that only shows that [person has] not been convicted of a crime, but it doesn’t speak to the character of the individual.”
Sixty-six percent of respondents said they know who they should contact in the local police force in order to discuss economic crime.
By liaising with police, Rolle said a business may be able to ascertain more information about a potential employee’s character or background in the community.
The survey also reveals that theft and breaking and entering are the most prevalent external frauds to Bahamian organizations.
By: Travis Cartwright-Carroll
Source: Nassau Guardian Staff Reporter
