Electronic Theft Crimes Costing Companies More than Physical Theft
For the first time, companies are reporting they are losing more due to the electronic theft of data than from a physical stealing of assets, according to Reuters. A poll of over 800 senior executives showed that electronic theft is usually done by a company’s own employees. Fears over data theft are preventing many companies from expanding internationally.
Businesses lost $1.7 million per billion dollars of sales to fraud. China is the emerging market with the highest level of fraud. Ninety-eight percent of businesses in China are affected by fraud. Colombia has 94 percent of its businesses affected and 90 percent of Brazil’s businesses are affected.
Although electronic theft is at an all-time high, the physical theft of cash and business assets is by far the most widespread form of fraud. Physical theft accounts for 27.2 percent of fraud losses, and electronic fraud is 27.3 percent of losses.
Not surprisingly, firms that were information-based rather than products-based had the highest levels of electronic theft. The study found that the most likely employees to commit fraud are junior employees and senior management. Despite this big rise in electronic theft, less than 50 percent of companies are planning on boosting their spending on information security in the next year, which may be in part to the current economic climate.
Many people have the mistaken impression that a conviction for electronic theft has less serious consequences than a conviction for a crime relating to burglary or grand theft. However, stealing a company’s electronic assets is a very serious crime that can carry a harsh punishment. If you have been charged with a California theft offense, contact the Los Angeles theft crime defense attorneys at the Law Offices of Lawrence Wolf today at (310) 277-1707. Our attorneys will help you navigate the criminal justice system as painlessly as possible.
