Communication and Internal Theft

Proper communication is key in preventing internal theft. Without it you open yourself and your company up to a great deal of potential loss. For several years I worked as a Corporate Fraud Investigator for a local supermarket chain. As great as that position was, when the time came I moved on and took another position at a completely different company. Apparently no one got the memo. The other day a few friends and I were on our way to a baseball game and stopped in to pick up a few tailgating supplies. One of the managers recognized me, shook my hand, asked how I had been and then promptly opened the door to the surveillance office for me using his key.

I understand that my previous position as Corporate Fraud Investigator afforded me some trust, but that manager missed all the employee theft red flags: He hadn’t seen me in a while. I was accompanied by people he had never seen before. I was dressed for a baseball game (completely unprofessional). I had to quickly explain the situation to the manager who was completely embarrassed.

The fact is: lesser men would have taken that opportunity to commit some kind of internal theft. After all, as a Corporate Fraud Investigator I would have known exactly how to get around any of the usual behaviors that might have given me away as a thief. Most employee theft happens as a result of perceived opportunity. Had I been a disgruntled ex employee I might have easily taken advantage of the situation. An individual may not have gotten to work intending to steal but because a door was left opened or unlocked, merchandise untagged, or any other safety measure not taken they will. This occasionally opens a Pandora’s Box where that individual begins to seek out similar situations throughout the company and before you know it you’re out of thousands of dollars all because the proper precautions and necessary communication wasn’t taken in order to prevent internal theft.

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Internal Theft Investigation and the Real World – Atlanta Georgia

An employee theft investigation is a situation most business owners and managers are uncomfortable with. This is understandable since this is a criminal and civil situation that the average businessperson rarely deals with. Because of this uncomfortable situation, there are trained employee theft investigator s . When an employee commits internal theft by stealing cash, merchandise, time or supplies they commit a clear crime. Most of the time the amount warrants felony criminal charges.

Internal theft in the “real world” happens in every business with employees. We would like to think that the person we hired would not steal from us. But the sad fact is that many do. Internal theft also known as employee theft many times is committed by some of the most “trusted” employees.  The problem is management’s definition of “trust”. Many managers and owners use personal trust in a business environment.

Personal trust is the trust you have in a friend or spouse. You may trust them with your life, house, car or dog. But you do not trust them with your business! In my experience most employee theft flourishes in this environment.

Business trust involves something called “trust but verify”. A good supervisor prevents employee theft and thus the need for an employee theft investigation by not simply assuming that work tasks are accomplished the way you want them. Following up on what and how an employee for instance is checking in stock keeps them on track and cuts down on mistakes and let’s the employee know you are involved. A simple audit of what the employee is doing or has done with feed back to them both positive and negative lets the employee know that any dishonest actions have a good chance of being discovered. Many times employee theft takes root when the employee feels that no one cares or knows what they do.

The same hold true for a corporate fraud investigation. Executives at all levels must be held accountable. Audits by CFO’s should be conducted at all levels. An outside auditing firm can also be used to conduct company reviews. You must tell them to include this type of review with their work.

But for the average small business a corporate fraud investigation will never be needed. Focus should be placed on control of all assets. This can be accomplished with a loss prevention audit or by simply being engaged at all levels.

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

Having problems with Employees helping themselves to your products?

 

Some retail studies show that one third of all theft that a business may experience is employee theft.  When a business owner looks to hire an employee, he hopes that the employee will be trustworthy and able to perform their job in a manner that helps in the function and profitability of the business.  No business owner hopes to have employees contribute to their shrink numbers.

Internal theft is able to be prevented or reduced in a variety of ways.  Managers and owners should maintain a good relationship with employees.  Those that are disgruntled are less likely to care about stealing from their employer than those that are happy with their jobs.  Businesses with low turnover rates have been shown to have lower rates of employee theft in some cases.

Policies and procedures need to be in place for a business’s vital areas, and these need to be followed by everyone.  Business owners and managers need to realize that all employees could potentially choose to create a loss for their business, regardless of the fact that they have previously been a trusted employee.  Circumstances may change in an employee’s life to where he or she may be able to justify a theft from his employer.  Policies have to be enforced for every employee in order to prevent the opportunity to steal.

Another best practice is to have a background check conducted on all prospective employees.  This will weed out the candidates that may have been caught and prosecuted at other businesses because of internal thef. 

When an employee theft investigation needs to be conducted, businesses are wise to consult a corporate fraud investigator in order to complete an accurate and thorough investigation.  When something raises a red flag that makes a business owner think employee theft is going on, there is probably much more that went unnoticed before that red flag was raised.

For information on how we can help you with an employee theft investigation or to find an corporate fraud investigator in Atlanta GA Check out our Website.

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Employee Theft is a Crime in Atlanta Georgia

Employee theft is a crime and against the law just like any other crime, but don’t expect the police to react to it in the same way that they react like other crimes like purse snatching, robbery, or burglary.  In fact, just call the police and ask them to investigate a theft that you suspect one of your employees may have committed, and unless it involves a whole lot of merchandise or money, don’t expect a robust employee theft investigation to be conducted.  This is no indictment against law enforcement or individual law enforcement departments or officers, but they have better things to do.  And off the record, I’ve had a police investigator tell me, “Don’t expect me to get excited about something that the employer should have prevented in the first place.”

So what can a business owner do if he suspects an employee has or is continuing to steal from him?  Ask him?  Confront him?  Set him up?

The best bet is to find someone who knows in detail how businesses operate and also has the investigative skill set to analyze a problem and offer not only an immediate solution, but also ways to avoid internal theft in the future.

A corporate fraud investigator is trained and experienced in dealing with incidents of internal theft – money, merchandise, other property and supplies, time, identity, or even intellectual property.  It’s an unfortunate fact that your own employees can hurt your business in ways that even your competition can’t.  A corporate fraud investigator has the resources to deal with employee theft on every level, from white collar crime like embezzlement to minor pilfering like candy bars and snacks.  Why would an employer worry about minor pilfering?  Multiply 15 employees times a $1.00 candy bar times 5 days a week for 50 weeks.  $3750.00 per year in employee theft through pilferage.  And that’s just at a dollar each.

While conducting an employee theft investigation, a corporate fraud investigator will develop information through observation and interviews with the employees just how widespread the employee theft actually is. Business owners and managers are frequently shocked when they discover the scope of internal theft cause by employees at their business.  Employee theft has a tendency to spread among employees until it almost commonplace if not stopped in its early stages.

To speak with a corporate fraud investigator about and employee theft investigation or internal theft in Atlanta Georgia or elsewhere, call 770-426-0547 or click here for more information.

Identifying Internal Theft – Atlanta Georgia

Personally, I believe that people who commit internal theft should be forced to wear a brand or a scarlet letter on their chests for the rest of their days. However, I’m aware that my brand of puritanical justice has little or no place in today’s society so it appears we’ll have to do it the hard way. Unfortunately, dishonest employees and shoplifters are the same in the respect that they come in all shapes, sizes, races, ages and sexes. There are no identifying marks or tell-tale signs. However, a loss prevention professional can make a reasonable assessment based on an individual’s conduct, integrity and judgment.

A person’s past can tell a lot about their future. There are a small percentage of people who would never steal, no matter what. We love these people dearly, by the way. There are a much larger percentage of people who will steal only if they believe they can safely get away without being identified. Then there is another small percentage (about the same size as the first) that will invariably steal from you at their first opportunity and continue to do so every chance they get. These people will have probably stolen before. Perform background checks on all new hires. Sure, people can change, but do you really want your business to be the proving ground for a so-called reformed criminal?

Internal theft is so rampant in the retail industry because you are forced to trust people to handle your money and merchandise every minute of every day. Most people want to be seen as honest and trustworthy. Most people in the retail business don’t make a great deal of money, even though they may be called upon to handle tens of thousands every day. This is where temptation comes in. Ensure that you treat your employees with respect. Make them feel that they have a vested interest in the company’s success, and you’ll find that your incidents of internal theft will decrease dramatically.

For more information about corporate fraud investigation or corporate fraud investigator or employee theft or employee theft investigation contact us at Internal Theft or call 1.770.426.0547 – Atlanta Georgia

Function of the Corporate Fraud Investigator – Atlanta Georgia

Shrink can come from many different areas and often times it is the job of the Corporate Fraud Investigator to identify and eliminate that shrink. In the loss prevention field we are all aware of, and remain on the lookout for, internal theft and external loss coming from shoplifters. It is equally as important, however, that we maintain a watchful eye on our supply chain. Vendor fraud and office supply scams are on the rise. We need to be mindful of this and take steps in order to combat it.

The corporate fraud investigator needs to ensure that the business is aware of it’s’ rights. You are only required to pay for the goods and services that you actually purchased. In other words, if you ordered 500 pens from a particular company and when you received the order there are 500 pens and 200 notebooks. The corresponding invoice will undoubtedly charge you for those 200 notebooks. However, since you did not place an order for that item you are not required to pay for them. This is why it is important to keep organized records of all your orders to ensure that you’re not being overcharged by an unscrupulous vendor.

Additionally, you should assign one individual in your organization to handle the duties of ordering new supplies. This will prevent redundancy in your process and help you identify most scams and attempted fraud much easier. Be aware that mistakes do happen in all aspects of business. If the discrepancy appears as a result of a simple oversight you should do your best to correct the mistake as quickly as possible. However, if the discrepancies are repeated and no resolution reached it is time for the corporate fraud investigator to step in to resolve the matter by whatever means are necessary.

For more information contact us at Corporate Fraud Investigator or call 1.770.426.0547 – Atlanta Georgia

Preventing Employee Theft – Atlanta Georgia

Employee theft is on the rise in the U.S. and American retailers are paying a heavy price. Some blame the economy, gas prices, the war in Iraq and Afghanistan, the President, etc. Who really cares why it’s happening? What we really want to know is how to prevent it from happening to us, right? Well, here are a few handy dandy tips I’ve picked up along the way that may be able to help you prevent employee theft in your organization.

My mama always said, “A fish rots from the head first.” Now, I have no idea whether this is true or not, but I do know that if your employees see you breaking the rules and ignoring the regulations then it’s only a matter of time before they’re doing it too. Always be honest and up front with your employees about what you expect from them and what they can expect from you. Lead by example. Make sure all employees are aware of the rules. Have them read your handbook, etc. and then have them sign acknowledging that they’ve read and understand the rules and regulations.

Establish an employee entrance/ exit; enforce a rule that no personal belongings (purses, backpacks, etc.) are to be allowed on the sales floor. Make sure that the employee parking lot is a good distance from the building. In short, make it as difficult as possible for your workers to steal from you. Most employee theft is a crime of opportunity. Eliminate the opportunity and you’ll usually eliminate the crime. However, if you do have someone who you catch stealing from your organization you should always prosecute that individual to the fullest extent of the law. It sends a message. That message? You will NOT tolerate employee theft.

For more information about employee theft investigation or internal theft or corporate fraud investigator contact us at Employee Theft or call 1.770.426.0547 – Atlanta Georgia

The “Don’ts” of an Employee Theft Investigation – Atlanta Georgia

Ok, so you’ve got grounds to begin an employee theft investigation. Great! Now you have a new set of issues that you need to deal with. There are quite a few ways to go about conducting your investigation and depending on who, what, when and where you’re investigating those may vary. However, there are a few things that you never want to do when conducting an employee theft investigation. Here are a few things that’ll help keep you on the right track:

Never, under any circumstances, act off of a hunch or here-say from another employee or customer. Remember, you are the expert and your eyes are the only ones that matter in this situation. If you do receive a tip treat it as just that. Keep an eye on the situation but don’t act until you have gathered evidence of wrong-doing for yourself.

Building a case can take time and we all have a lot to do in our everyday duties. However, don’t be too lazy or too overwhelmed to take the time to fully investigate every case. The longer it takes for you to catch the culprit the more money and merchandise is going out of your store.

Never accuse anyone of a crime until you’ve fully investigated the case and have undisputable evidence of their wrong-doing. Several companies have faced lawsuits for doing just that. Once you call someone in for an interview it should already be an open and shut case. Their confession is just the icing on the cake. Don’t get caught up in being the next Colombo; trying to force a confession out of someone. That only works on television. Keep these “don’ts” in mind when performing your next employee theft investigation.

For more information about employee theft or internal theft or employee theft investigation or corporate fraud investigator contact us at Employee Theft Investigation or call 1.770.426.0547 – Atlanta Georgia

Oh No! Another Employee Theft

Employee theft is one of those things that goes on day after day.  The only times most employers pay any attention to internal theft is when it either 1) happens to them; or 2) makes the newspaper.  When an employee theft is big enough to make the news, it means that some employer placed his trust in the wrong employee.

Very recently, according to various news reports out of Jacksonville, a long time Northeast Florida medical center employee was arrested and charged in the theft of over $200,000 as a result of an internal audit.  The woman had worked in the accounts payable department since the mid ‘80’s.

Also in the news, a business manager stole more than $115,000, from a non-profit association in Maine in just over four years that she was employed.  Her MO was to forge the executive director’s signature on checks that she used to pay herself and her creditors, use an association credit card for personal purchases, and pay her own credit card bills with the association’s operating account.  The embezzlement wasn’t discovered until after the manager was fired for other reasons.

In both of these examples, it’s clear that the opportunity to steal went on far too long based on the amounts taken.  Internal theft is going to happen, that’s just a fact of life.  But smart companies put measures in place to reduce the chances that examples like these will be able to continue for any length of time without detection.

If you’re an employer, don’t think internal theft can’t happen to you.  Enterprising employees with a reason can always think of a way to get out with cash, property, or merchandise, believing that they can get away with it.

Take a look at the ways employee theft can happen at your workplace and work to eliminate the threat by increasing the likelihood of detection through the implementation of random and periodic audits by a corporate fraud investigator or a qualified loss prevention agent.

For a vulnerability assessment or to discuss a suspicion of employee theft, call 888-426-0547 or click here for more information.

Preventing Employee Theft – Atlanta Georgia

“One cannot be betrayed if one has no people.” This is one of my favorite quotes from one of my favorite movies. However, in the real world a business needs people to survive, and for this reason employee theft will always be an issue. The trick is to identify it as quickly as possible and eliminate the culprits. Studies show that companies with fewer than 100 employees tend to suffer the worst losses due to employee theft. The reason for this is 2-fold. A smaller company usually has far less money to spend on anti-theft controls, and a smaller company is also far less able to absorb the loss than a larger, more profitable one. Therefore, if you run a smaller business this is especially important to you.

Background checks are a vital part of doing business today. Nobody want to accept the fact that someone you’ve selected to fill a trusted role in your organization may be stealing from the till or slipping merchandise out the back door, but it happens. So it is in your best interest to perform comprehensive background checks on all new hires to include criminal, credit and drug screenings. Don’t assume that you can throw money at the problem either. Well-paid employees are just as likely to commit employee theft as your minimum wage workers. A quick look at the news involving the Enron scandal and the Bernie Madoff debacle should show you that greed has no cap.

Work with your employees to develop a plan to discourage employee theft. When people feel they have a vested interest in the company they are far less likely to view you as “the man” and more likely to see you as a partner and a friend. Everyone wants to stick it to “the man”. Only a real heel robs from his friends. Create a clear, consistent and comprehensive policy regarding theft with no room for error or false interpretation and you will be one step closer to preventing employee theft.

For more information about corporate fraud investigation or corporate fraud investigator or employee theft investigation or internal theft or white collar crime contact us at Employee Theft or call 1.770.426.0547 – Atlanta Georgia