How the Hospitality Industry is Leaving Money on the Table Via Occupational Fraud (Infographic)
1 Min Read By ACFE
Fraud is unfortunately a costly problem that's present in every industry and the food service and hospitality industry is no different. According to the ACFE’s 2018 Report to the Nations on Occupational Fraud and Abuse, each instance of fraud cost $90,000 and lasted 15 months before it was caught.
One issue specific to the restaurant industry is a lack of reporting hotline- whether that is a telephone number or anonymous online place for employees to report their concerns about fraud. Organizations that implemented a hotline for fraud tips saw a 50 percent reduction in fraud losses per each instance and only 49 percent of organizations in the food service and hospitality industry had any sort of hotline established (compared to 63 percent of organizations over all industries). Organizations that aren't implementing a hotline are potentially setting themselves up to lose unnecessarily high amounts of money.
See more about fraud in the below infographics.