Now, most of us hear the word embezzlement or the phrase corporate fraud investigation and instantly think big business. Large publicly traded companies such as Enron, Coke or AT&T come to mind. The truth is that these “big” words describe a simple and far too common act of employee dishonesty. Corporate fraud is defined as “a crime committed by a person of respectability and high social status in the course of his occupation”. In other words it’s anyone who uses their job, position or standing in order to commit a crime. Embezzlement is defined as “the act of dishonestly appropriating or secreting assets by one or more individuals to whom such assets have been entrusted”, sounds like a simple case of employee theft to me.

Embezzlement is often performed in a manner that is premeditated, systematic and methodical, with the conscious intent to conceal the activities from coworkers or superiors, usually because it is being done without their knowledge or consent. Often it involves the trusted person embezzling only a small proportion of money at a time, in an attempt to minimize the risk of detection. If done properly, and by ‘properly’ I mean underhanded and sneaky enough, embezzlement can continue for years, or even decades, without detection. This is why corporate fraud and employee theft in general can be so dangerous to a company.

So, why the big word ‘embezzlement’? Why not just call it stealing? Well, because they’re 2 distinct differences in the two. Embezzlement requires conversion, or a misappropriation of funds. Stealing is straight-forward theft by someone who had no business with the money or property.

Embezzlement is performed by someone who had the right and necessity to handle the money or property but simply decided to use those funds for their own personal gain. This and other corporate fraud crimes can be difficult to understand, that’s why I would advise consulting a lawyer or other experts in the field.

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

Depending on which source you decide to go by internal theft can be responsible for up to 75% of all retail losses. With that type of money at stake it’s only natural to want to grab a suspect by the collar and shake a confession out of him/ her. However, for obvious reasons, this is not the way we do business. A proper interrogation should include a mix of technology (i.e. transaction reports, video surveillance footage) and proven, professional interrogation techniques used to solicit a confession.

Let’s say you have an employee that has been ringing multiple returns without using the original purchase information – an obvious red flag. Gather your reports on all such transactions then pull up the corresponding video footage of these transactions. Once you’ve found proof of wrong-doing, go back and investigate their other transactions. Everyone will tell you that it’s their first time, but that is almost always a lie. Once you’ve gathered your evidence, call the individual in for an interview. No water boarding or electro-shock torture necessary, an internal theft interrogation should always be handled calmly and professionally.

Give the suspect several examples of internal theft , including refund fraud. Then explain all the different loss prevention methods you have in place to combat criminal activity. Explain that you’re there to help them and you want to hear their side of the story. Personally I’m not a fan of showing the suspect the footage of them engaging in the theft. However, I do like to explain what I saw in the footage in extreme detail. This generally leaves no doubt in the suspects head that they’ve been caught. It’s usually around this point that the average suspect crumbles into a pile of warm goo. The confession is now imminent; from there you can get into restitution agreements to recover your losses. Every case is going to be different, however if your approach to the interrogation process is solid you will get results and reduce the internal theft within your organization.

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

There comes a point in every recognized case of employee theft where you, the investigator, know that you’ve got the suspect. Whether it’s clear video footage of the individual slipping a large wad of money into the pocket of their khaki’s or simply multiple transaction reports all pointing to obvious wrong-doing by the suspect, you’ve got them. Now what? Well, now the company is still out of money; now you have a dishonest employee in your midst that you need to get rid of with as little fuss as possible. The best way to do that is by eliciting an admission of guilt or confession from the subject.

The last thing you want to do is have more time and money going to a lengthy court case. That is exactly what can happen if the subject decides to fight the case or claim wrongful termination. An admission of guilt is a good way to avoid all of that. Additionally it’s the first step to recovering the moneys lost by the company as a result of the individuals’ employee theft activity.  A monetary recovery agreement should accompany all admissions of guilt. The company will then go after the employee for civil recovery and if they deem it necessary they will call in the police and prosecute the crime.

Employee theft is the highest cause of shrink in any retail company. Therefore if you want to combat it properly you need to follow through on all investigations. Obtain the necessary proof of wrong-doing by using both technological means and a solid interrogation technique. Finally, finish with getting a confession. Make the subject believe that you’re there to help them and it is in their best interest to simply “come clean” and then you can all move forward. Sure, it’s possible that they’ll be moving forward to a jail cell but that’s the price they pay for employee theft .

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