Employee Theft – The 10-10-80 Rule Atlanta Georgia

Regarding employee theft, there is a widely held rule of thumb among professional auditors, accountants, and most everyone else involved in the detection and/or apprehension of dishonest employees called the 10-10-80 rule: 10 percent of employees will steal no matter what measures employers take; 10 percent will never steal regardless of the circumstances; and 80 percent will steal if all the right conditions are met.

The employer’s goal then, is to reduce the likelihood that the 80 percent will steal by reducing the opportunity that an employee will be able to steal and get away with it.

This is accomplished through a number of sound personnel practices such as separation of duties so that one employee doesn’t have responsibility for all tasks in a given operation (such as receiving or accounting), adequate supervision and review of bank reconciliation and payroll and vendor checks, and conduct unannounced audits of all operations front to back.

But every business will eventually become victim to some form of employee theft and loss of assets such as cash, merchandise, supplies, or intellectual property.

When internal theft is suspected, the next step is an employee theft investigation conducted by a loss prevention or corporate fraud investigator.  A business owner has expertise in operating his business, but often trusts others to handle the back office and routine tasks.  Once a dishonest employee discovers that he has free reign to steal it can take months and years to discover the thefts.

A loss prevention or corporate fraud investigator can help determine the depth and scope of the employee theft.  Often, the perceived involvement of one employee is only the proverbial tip of the iceberg, as there are collaborators or witnesses that should also be developed.

The advantages of using an experienced fraud investigator in an employee theft investigation situation are many.  Among them are experienced in interviewing suspects and witnesses and developing evidence; familiarity with legal issues and employment law that affect employees; exposure to many types of internal theft; and working for the welfare of the business alone.

Reduce or eliminate employee theft through careful planning and a swift reaction to any suspicion of internal theft.

For more information on employee theft , employee theft investigation , internal theft , or corporate fraud investigation contact us or call 1.770.426.0547 – Atlanta Georgia