Grossman 1
Jacob Grossman
College Composition II, Section 22
Professor Royek
April 4, 2018
Proposal Essay
Word Count: 915
The Solution to Economic Fraud
Economic fraud is a major issue in the business world today. It can single-handedly
destroy a business, which is why a solution to this issue is so important. Over $3.5 trillion per
year is lost due to fraud globally, this equates to every business and company around the world
losing about 5% of their annual revenue (ACFE, 2012). Without a doubt the issue of fraud has
snowballed, and no definite solution has been created. Without this solution, businesses and
companies will begin to fear their own employees. However, there is no clear-cut solution to put
a stop to economic fraud. In fact, once it happens there really is nothing the victim can do, other
than possibly receive compensation from the person who committed the fraud. That is why it is
so important for governments and corporations themselves to enact strong preventative measures
to avoid fraud all together. The best ways to prevent economic fraud from happening is to screen
employees regularly, have strong policies and procedures, and make sure employees feel valued.
Grossman 2
Putting a stop to economic fraud is very tricky because once it happens there is virtually
nothing you can do about it. Some people argue that the best solution to fraud is to prosecute the
employee that committed it. However, the prosecution process can be quite expensive and time
consuming. On top of that, it is not for certain that the business or company that fell victim will
receive full compensation, so they could still end up losing money after the prosecution. The
only way to solve the major societal issue of fraud is to not allow it to happen in the first place.
One of the best ways to prevent economic fraud inside a company or business is to screen your
employees regularly. Many times, when people apply to jobs they get away with being untruthful
about their past. “A recent report from ADP Screening and Selection Services found that 44% of
applicants lied about their work histories, 41% lied about their education, and 23% falsified
credentials or licenses. Likewise, ResumeDoctor.com found that 42.7% of résumés have
