Bezel – a metal band that binds a precious gem – a thing we don’t notice until the gem is gone
Definition: “The bezzle” is the total value of “undiscovered embezzlement” at the nation’s businesses and banks.
Famed economist, John Kenneth Galbraith, in his book, The Great Crash of 1929, points out the ebb and flow of “the bezzle” during times of boom and bust.
Examples:
Retail businesses often write off 10% in losses each year to “shrinkage,” i.e., pilfering by employees.
The Association of Certified Fraud Examiners has found that “Organisations worldwide lose 5% of their annual revenues to fraud…”
“Frauds committed by owners and executives are more than three times as costly as those committed by managers and more than nine times as costly as employee frauds. Executive-level frauds also take much longer to detect.” (Source: Ian Wylie, Financial Times, March 7, 2011)
Synonyms: white collar crime; shrinkage; fraud
Related Posts: Bernie Madoff’s Wealth Redistribution and Fraud is Good for You! (guest post)
Copyright © 2011 Nancy K. Humphreys