fidelity bonds

     A fidelity bond is a kind of insurance policy. It is taken out by someone's employer to ensure his or her honesty and faithfulness, or fidelity.  If the employee commits fraud, the insurer who issued the fidelity bond reimburses his or her employer.Unfortunately, fidelity bonds can make some kinds of internal corporate fraud into a "can't lose" situation for the employer. The issuer of the bond does background checks on the employee being insure by a fidelity bond, but there is no reason to fear financial loss through fraud, so employers have small incentive to stop employees from defrauding the corporation. They have nothing to lose.