A national study of employee thefts of $100,000 or more from businesses shows that Idaho ranks No. 7 in the country for risk — possibly because of the trusting nature of its many small family businesses.

Marquet International of Wellesley, Mass., issued its fourth annual report on major U.S. embezzlement cases in January. In all, it looked at 473 cases in 2011 — representing as much as $354 million in losses.

In terms of the number of cases, California led the pack by far with a total of 63 cases of embezzlement over $100,000. Michigan and Pennsylvania were tied for a distant second, with 28 cases each.

The state with the largest estimated overall loss was New York, with $48.9 million. The Empire State also topped the list for highest average lost per case, $2.4 million.

But when analysts look at embezzlement losses compared to the size of the state’s economy, Idaho comes out near the top.

Idaho ranked seventh on a list of states with the highest “embezzlement propensity factor,” or risk of embezzlement. Vermont topped the list.

Vermont? The bucolic home of Ben & Jerry’s ice cream is the riskiest place in the country for embezzlement?

“Yeah, I’ve been asked, ‘Why Vermont?’” Chris Marquet said from his Massachusetts office. “I think Idaho has a similar issue. Vermont has a lot of small, family-run businesses.

“Small businesses are the ones at greatest risk because, typically, they have very little infrastructure or controls. There’s no budget for it,” Marquet said. “Or no perceived need. The business owner ends up relying on a single bookkeeper for 15 years.”

The embezzlement risk calculated by Marquet is a ratio of loss compared with a state’s gross state product (its contribution to the national gross domestic product, or GDP).

Generally, analysts would expect the level of fraud to be proportional to the state’s economic output.

But the embezzlement rate in Idaho is “two and a half times what we would expect,” Marquet said.

Compared with other states, Idaho doesn’t have a large number of cases over $100,000. Marquet counted three in 2009, seven in 2010 and six in 2011. Some of the court cases have not concluded.

WHAT WE KNOW ABOUT EMBEZZLEMENT

The national study of major embezzlement showed that most of the thefts went on for years — the average scheme was almost five years. The median loss was $340,000.

Forged or other unauthorized checks accounted for more than 38 percent of thefts. One out of five was the result of theft or conversion of cash receipts.

More than 70 percent of the crimes were committed by employees who had finance, booking and accounting positions. Nearly two-thirds of perpetrators were women, but men, on average, stole about 25 percent more.

People in their 40s caused the greatest overall loss. That’s partly because people at that point in their lives are in a position to steal and they know the lay of the land, Marquet said.

So should employers be extra-suspicious of those who are middle-aged or older?

It’s more — and less — than that, said Marquet.

“Bottom line, it’s a control and audit issue,” he said. “You need to audit and check the checks.

“Do you know who all the vendors are? Do you know what they are doing for you?”

Katy Moeller: 377-6413