corporate fraud investigation

Identifying Internal Theft – Atlanta Georgia

April 21, 2011 by Staff Editor Leave a Comment

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

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Corporate Fraud Investigation – Atlanta Georgia

April 17, 2011 by Staff Editor Leave a Comment

A corporate fraud investigation is defined as a query into the deception or breach of equitable duties inherent in a position or a relationship. Now, that’s a lot of big fancy words that simply means a person used their position within a company or relationship to an individual in order to deceitfully make a profit. We hear this term used to describe the recent Enron scandal or the WorldCom debacle and we begin to associate it in those terms. Those companies overstated their earnings by billions of dollars. For most of us it would take far less than a billion dollars to scuttle our ships. In fact, the loss of $100,000 is enough to send your average small business owner to the soup kitchens. That’s why it is especially important for them to realize that although fraud may be big business it is not limited to big businesses.

In a recent corporate fraud investigation that I played a part in, a young woman called the company I worked for, a grocery store chain, and reported that her identity had been stolen and the unknown culprit had apparently used her credit card to make 2 purchases at 2 different locations. One purchase was for $1,200 and the other was for $1,500. Now, this type of thing is fairly common in these days and times, I’m sorry to say. However, the red flag popped up in my mind with the amounts of the transactions. Seriously, when was the last time you spent $1,200 at the grocery store?

In the end it was revealed that the woman was allied with an individual who worked for the credit card company. He was able to send her very official looking, yet fraudulent, invoices with false purchases on them which she then used to get those charges reversed and the funds put back on her credit card. The last I heard they were both occupying rooms in different correctional institutions, all thanks to a successful corporate fraud investigation.

For more information contact us Corporate Fraud Investigation or call 1.770.426.0547

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The Small Problem of Internal Theft – Atlanta Georgia

April 2, 2011 by Staff Editor Leave a Comment

Only on the rarest of occasions does internal theft start with someone shoving a big screen TV out of the back door just before closing time; or an associate in the cash office making off with $500 from a register. Internal theft normally starts off much smaller and builds and builds over time. Maybe they’ll start off by stealing a CD, then move to a camera; a DVD player becomes a boom box, then when they’ve finally worked up the nerve and found the flaws in your security system that’s when they go for the big score.

Assume at all times that there is a thief in the building and act accordingly. It is far better to catch the individual mentioned above after they’ve stolen a $16.99 CD than after they’ve ran off with a $1600 television, right? Look for the signs. A thief needs privacy to work, so pay attention to anyone who is always arriving early or staying late. Sure, they may be a truly dedicated worker, but then again they could be casing the joint. It’s always best to be sure.

A number of thieves work with outside individuals, so be aware of anyone who always has their buddies coming up to the workplace and hanging out. They may be sweet hearting merchandise to that individual, or that buddy may be on the receiving end of that big screen when it goes out the back door. Keep an eye out for people who are always borrowing money from other associates or those who are going through a rough personal ordeal. These can all be triggers that can turn an ordinarily trustworthy employee into a candidate for internal theft.

Do you need an internal theft investigation? Contact us, we are the experts in Georgia.

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

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Preventing Employee Theft – Atlanta Georgia

March 21, 2011 by Staff Editor Leave a Comment

“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

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Internal Theft- Atlanta Georgia

March 20, 2011 by Staff Editor Leave a Comment

Internal theft is a growing problem in all areas of the retail market. There are certain individuals who will accept employment at a company simply to place themselves in a position to steal money or merchandise. Several years ago I had applied for a job with a rather large retailer. After nearly 2 months they finally called me in, interviewed me and gave me the position. After I accepted, the district loss prevention manager and the store manager explained what had taken them so long to call me back.

It appears they had selected another individual for the position before me. This individual had gone through the process and had started working as the store’s loss prevention manager. Within 2 weeks he had managed to steal over $3,000 worth of merchandise. Once they had discovered that it was their new loss prevention manager committing the internal theft they went back through the CCTV footage to see how long he had been doing it. Turns out that he first began stealing from the company on his 2^nd day at work. Amazing! Of course he was subsequently terminated and arrested.

This case goes to show that you can never be too careful and you should never underestimate the drive and determination of a crook. You should always keep a close eye on new hires for 2 reasons: First of all, you have no real frame of reference as to that person’s character. You can’t trust their references and background checks can only tell you that they’ve never been caught before. Second, they’re broke. It can take up to 3 weeks for a new hire to receive their first check. If they weren’t employed previous to taking the job this can be a financially trying time. Keep these factors in mind when looking to eliminate internal theft in your organization.

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

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Preventing Employee Theft – Part II – Atlanta Georgia

March 17, 2011 by Staff Editor Leave a Comment

It is important to recognize that employee theft happens at all levels of business. Whether it is the cashier siphoning $5’s and $10’s from the register, the dock worker who puts a DVD player in the trash for his buddy to pick up later, or the assistant manager who has been taking $200 a week from the cash room for the last 4 years, it all adds up. Over the course of time it can add up to your company being put out of business by dishonest employees. Here are a few more steps you can take to prevent employee theft in your organization.

Develop a list of all individuals with keys to the building and what areas each person has access to. Be sure to keep this list up to date in the event of new hires, transfers, etc. You should always know who has access to your money and merchandise. Limit the amount of cash that is allowed to build up in any one cash register. Make regular and unannounced cash drops at every register. All cashbook entries should be cross-checked with a physical count of on-hand cash on a daily basis. Make sure the person doing the counts is different from the one who makes the entries.

Perform regular and frequent audits on all of your receiving processes. Ensure that employees who are responsible for doing payroll are not also responsible for said payrolls distribution. Make sure your checks and balances are done aggressively and ensure that any shortages are investigated and resolved as quickly as possible. Most employee theft is a crime of opportunity. Eliminate the opportunity and you’ll reduce the amount of crime that goes on within your four walls. Stay alert; these are just a few tips. Criminals are getting smarter and more innovative every day. You must do the same if you intend to prevent employee theft.

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

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Preventing Employee Theft – Atlanta Georgia

March 15, 2011 by Staff Editor Leave a Comment

Here are a few tips for you to follow that will help you prevent or reduce employee theft within your organization. First of all, develop a policy which states plainly how employee purchases are to be handled. Be sure to emphasize the fact that employees should never process their own purchases under any circumstances. Install lockers and establish a policy under which employees are not allowed to bring personal items (i.e. purses, backpacks, briefcases, etc.) onto the sales floor. Establish an “employee entrance”. Everyone who’s working should use those doors to enter and exit. Make sure that entrance is monitored at all times.

Perform regular refund audits. Fraudulent refunds have become an increasingly popular form of employee theft. Make sure you’re cross-checking the refund slips with the actual merchandise in stock. Be sure to audit all vendors and suppliers that come in and out of your business as well. These individuals have access to areas of your building that everyday customers don’t, but because they’re not your regular employees they’re usually the last ones you suspect in cases of employee theft.

You should develop a process for trash removal as that is one of the biggest ways employees have been known to remove merchandise from a building. Use clear trash bags whenever possible and make it mandatory for all boxes to be flattened or crushed before they are discarded. Perform random spot checks of employee packages, purchases, backpacks, purses, etc. It is important that everyone in your employ know that you are watching and are aware of the possibility of employee theft, and that it will not be tolerated.

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

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Internal Theft Methods – Atlanta Georgia

March 13, 2011 by Staff Editor Leave a Comment

Internal theft is growing in the United States. It is estimated that 75 – 80% of all theft that a business endures comes from one of that business’s employees. It is obviously important that you, the business owner, make internal theft a priority in your day to day operations. These are just a few examples of how some employees commit this type of theft. The most popular method is concealment. Just like a regular shoplifter the employee simply places merchandise or goods in a handbag, briefcase, backpack, etc. then they wait for the end of their shift and simply walk out with the goods.

Another popular method is “tossing”. This is where an employee takes whatever merchandise they intend to steal and loads it into a trash bag. From there they simply go out to the dumpster and toss that trash bag away. Later, when the store’s closed or they’re sure that nobody is looking they’ll return to the dumpster, get the trash bag out and they’re off with your merchandise. There are also quite a few less obvious methods of internal theft.

An employee may purposely be overcharging customers on certain merchandise. They then take the extra money and pocket it. They may be working with others and giving away merchandise, a method known as “sweethearting” or simply allowing friends and family to use an employee discount on merchandise. They may also be giving out cash, checks or vouchers for returned merchandise that was never actually returned. There are many different types of internal theft. These are just a few that you need to be aware of.

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

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Signs of Employee Theft – Atlanta Georgia

March 10, 2011 by Staff Editor Leave a Comment

It is estimated that 1 in 3 workers commits employee theft, and often they do it repeatedly. It is obviously important to determine who that 1 person is without alienating the other 2 potentially good and honest workers. There is, of course, no sure fire method of detecting a thief prior to the crime. There are, however, a number of warning signs that you’d be wise to look for. Be aware of employees who begin making large purchases or change their spending habits drastically. If they were trying to scrape up lunch money last week and they’re buying a big screen TV today you should start paying attention.

Some people who are planning employee theft will begin to find reasons to work unsupervised. They’ll come in early or volunteer to stay late to ‘finish a project’. This doesn’t necessarily mean they’re stealing, but it is something to keep an eye on. Anyone with excessive absences is also a red flag. They may have a drinking or drug problem, this is always bad news for an employer. Even if it’s nothing that sinister, maybe just a prolonged sickness. Well, with doctor visits come doctor bills and they may be now looking for a quick and easy solution to paying those off.

Many employee theft cases involve outside partners. Be aware of anyone who has a lot of family and friends visiting them at work, especially if they insist on going through a certain person’s register. Sure, they may just have a great personality that people want to be around, or it may be something else. Any strange cars parked behind the building or near the dumpsters should also be noted. There are many different ways to spot a crook. These are just a few warning signs that can put you ahead of the curve when it comes to battling employee theft.

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A New Form of Internal Theft – Atlanta Georgia

March 8, 2011 by Staff Editor Leave a Comment

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

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