Electronic Theft Out Paces Theft of Hard Assets

For the first time businesses are reporting losing more money to electronic theft than to theft of hard physical assets. The Insurance Journal reports that the amount of loss due to electronic piracy and fraud is now outpacing the theft of business assets by millions. Studies are showing that most of this theft is coming from middle tier employees and outside thieves. The risk management practices to control the electroninc theft is not as well formed as hard asset theft and also lags in keeping up with the technology changes that occur so rapidly. How this will affect businesses going forward will remain to be seen. With the electroninc risk so high, businesses that cannot control it will most likely not expand or grow as quickly as they may be able to. In other words electronic theft may be contributing to a stalling economy. In time I think we will see sound risk managment techniques develop that can control some of the problems with electronic theft. Until next time know your risks and be careful out there.  K

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