Just this past week I was introduced to a new form of internal theft. This particular kind involves 2 people: the employee, of course, and a customer/ counterfeiter. That’s right. We all know counterfeiting exists and just about any retailer with good sense has invested in a continuous supply of counterfeit detector pens by now. What happens when one slips through the cracks though? We don’t normally prosecute the cashier who accepted the counterfeit bill, do we? No. Even in the most extreme cases that employee is usually reprimanded or written up and they return to work immediately.

I was recently made aware of a counterfeit $20 bill that was taken at one of my stores. No biggie, right? However, it is routine to review the footage to try to determine where the bill came from so I did just that. Turns out that the cashier that accepted the bill was one that I have had my eye on for some time. This prompted me to probe deeper into the incident. I found that the bill had been passed to the cashier by someone known to be an associate of hers. She never used the counterfeit detector pen or even held the bill to the light to check for the magnetic strip. This alone only proved negligence, not internal theft.

The negligence, however, gave me a reason to talk to her. In the subsequent interview the cashier admitted to knowingly accepting the counterfeit bill. She believed that since she did not manufacture or pass the bill that she was not guilty of a crime. The authorities saw it differently and she is now in a jail cell awaiting prosecution. Be aware, crooks are going to new extremes to commit crimes these days and they may use some of your less intelligent employees to help them do so. Make no mistake, knowingly accepting a counterfeit bill is a form of internal theft.

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

The reason employee theft is so dangerous to a company is because of its’ snowballing effect. Think about it, if you saw the same customer come into the store everyday and hang out in the same department you’d become instantly suspicious of them, right? Well, that’s exactly what your average employee does, however we assume that they’re there to simply do a job so we think nothing else of it. The truth is their position gives them unquestioned regular access to both your money and your merchandise. In essence, your business is in their hands.

Employee theft is like a drug. The first time an employee decides to take from the company they’re usually scared and apprehensive. They’re shaking like a leaf; beads of sweat form on their brow and they’ll probably talk themselves out of their first few attempts. After the first time though it becomes easier and easier to conceal merchandise or dip into the register. Before you know it that same individual who looked like a frightened child the first time is a regular retail John Dillinger, and just like Dillinger he’ll eventually recruit a gang.

Some thieves are smart and keep their wrong-doing to themselves. Most like to brag. Once the bragging starts the snowballing will too. Other associates will begin looking for ways to get away with either cash or merchandise and now you have multiple people taking multiple things at multiple times of the day. Your employee theft is out of control! What’s the solution? Stop the snowball before it starts. When the other employees see that first individual get taken away in handcuffs all of a sudden employee theft doesn’t seem like the great idea it once did.

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

A funny thing happened on my way to an internal theft . A company that I worked for was seeing unusually high losses in their Electronics department. Upon reviewing the footage and seeing the type of merchandise that was frequently going missing we determined that external theft, or shoplifting, was probably not the culprit. See, most of the missing merchandise stayed locked up in a back closet of the Electronics department just so average customers wouldn’t have access to it. Therefore it became obvious that it must be an inside job.

I entered the store in the middle of the night and installed a covert camera in the back closet of the Electronics department. I figured that whoever was committing the internal theft would continue doing so and with video footage of the deed it would be incredibly easy to build a case. What I didn’t realize is that there was a lot more going on in that back closet than I had anticipated. On a quiet Sunday afternoon I received a phone call from one of my detectives who snickered uncontrollably as he asked me how to handle the situation.

It seems that a couple of Electronics associates had been using that back closet as a rendezvous spot and were currently involved in acts that would make a madam blush. I called the manager of the department and had him conveniently walk in on them. (Since the lovebirds weren’t my initial target I didn’t want to alert anyone to the presence of a covert camera). The couple was terminated for unprofessional conduct and time theft and about a week later the actual thief was caught red handed with over $500 worth of MP3 players stuck down his pants. 3 for the price of 1 is always a good deal, especially when you’re talking about internal theft .

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

The best way to prevent internal theft within your organization is to inform your employees about your internal security measures. Furthermore, make sure they understand that if caught stealing you will prosecute them to the fullest extent of the law. The fact is that most employees steal simply because they think they can easily get away with it. Let it be known that they will probably be caught and definitely have to pay the price for their wrong-doing once caught and you’ll limit the number of thieves within you building.

Here are a few tips on how cash controls can help you prevent internal theft and send a message to your employees: Limit the amount of cash in a register and do frequent safe drops throughout the day. There’s nothing more tempting than a mound of cash sitting in front of you. Take away that temptation. Put one employee in charge of setting up cash drawers and put another one in charge of double checking it. Never put one person in charge of all of your money, again the temptation is too high. Issue one drawer to each cashier. Nobody else should be allowed to ring on this drawer. This sends the message that ‘whatever happens to this drawer is your responsibility’.

You should require that every register be closed after each transaction and a register should never be left unlocked when not attended. This will eliminate the claim that another employee rang in a sale when they were on break, at lunch, etc. All over-rings or under-rings should be signed off by a manager and the signature of all managers should be kept on file to prevent possible forgeries. These steps send the message that you’re serious about controlling your money and keeping employees honest. Use them and you’re guaranteed to limit the amount of internal theft you experience.

For more information about employee theft or corporate fraud investigator or corporate fraud investigation or employee theft investigation contact us at Internal Theft or call 1.770.426.0547 we are located in the Atlanta Georgia area

Previously we discussed signs that an employee may exhibit to clue you in to possible internal theft. Now, I wanted to tell you about some other signs to look for from others that may let you know you have a potential problem. It’s estimated that $52 billion a year is lost due to internal theft so it may be beneficial for you to know and understand what to look for and how to stop a costly problem before it starts. Customers are a great source of information. They may not always be right as the old adage says, but they’re always worth listening to.

If you get constant customer complaints about shortages or substitutions in their orders you should begin to become suspicious. Frequent refunds (especially of the same kinds of merchandise) by one employee should send up a red flag. Sometimes a customer may see something on your sales floor but not want to get involved at that point. So be aware of any anonymous phone calls or letters you may receive explaining an illegal or immoral act. It’s easy to dismiss these as pranks, but I caution you to give them the proper weight and investigate them thoroughly.

In today’s business climate you’re always looking for an edge so you probably encourage your employees to build a relationship with potential customers. However, beware that this can become a slippery slope. Watch for any employee that seems a little too close to the customers and always be weary of a customer that comes in and demands to only deal with a certain associate. There are many different signs to look for that may clue you in to wrong-doing inside your business. Internal theft is a big problem in business today, but it’s one that can be managed if you pay attention to the signs and act accordingly.

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