Chargebacks911® COO Speaks With Digital News Outlet About Seasonal Threat
Holiday sales could top $1 trillion for the first time this year, but online merchants are increasingly vulnerable to employee fraud. So says Chargebacks911 Co-Founder and COO Monica Eaton-Cardone in a recent feature for Patch.com.
Patch describes itself as “an innovative way to find out about, and participate in, what's going on near you.” The site allows users to keep up with current news, learn, and participate in discussions. To that end, one topic that goes underreported among retailers: a seasonal influx of fraud during the holidays. And, while the usual culprits are still at work, there may also be fraudsters within the business itself.
Employee-assisted fraud is not a problem limited to brick-and-mortar retailers. Any business could be susceptible to this threat. However, the problem is even worse during the holidays, when retailers often bring in short-term workers to handle the increased traffic.
There are numerous reasons employees commit fraud. A study conducted by the National Retail Federation (NRF) cited in the piece suggest the pressure to perform, plus resentment by employees who feel undervalued, are both common. However, the number one reason for employees to commit fraud was simply because the opportunity presented itself.
As a leading expert in fraud mitigation, Monica was able to offer some insight on the topic. "I'm not in their head,” she says, “but I would imagine some are thinking they have been loyal employees and have devoted so many years that they think they're owed additional compensation…Some employees who would never think of stealing from another individual have the notion that ‘humans are not the same as a corporation, and a corporation isn't humanized enough to create guilt.’”