employee theft — Page 24

Having problems with Employees helping themselves to your products?

May 22, 2011 by Staff Editor Leave a Comment

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.

For more information on employee theft , internal theft , employee theft investigation or corporate fraud investigator contact us call 1.770.426.256.

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Employee Theft – Good Employee Goes Bad?

May 17, 2011 by Staff Editor Leave a Comment

Considering employee theft, no company willingly hires a thief. Most companies actually run some sort of criminal history or background check before they hire someone, just to be sure that they aren’t hiring a thief. So why does an allegedly honest employee suddenly turn to a life of crime and take money from his employer’s pocket.

May people may think that calling employee theft a “life of crime” is an overreach, but not the thousands of employers whose businesses are harmed by these thieves.

How do employers allow internal theft to happen? Is there any way to stop it?

Several of elements have to exist for theft by employees to continue:

The employee has some perceived need for the cash or merchandise; the employee either can’t or doesn’t want to pay for the merchandise; the thief has the opportunity to convert the property to his own use; the thief has little fear of being caught, or of the consequences if he is caught.

After conducting hundreds of employee theft investigations, the common denominator for individuals who continue stealing from their employers has been a lack of oversight by supervision, or the lack of internal controls within the company.

Generally, a trusted employee is allowed to go about his business without being audited or routinely checked up on by supervision. Employee thieves almost always start by stealing small amounts and grow bolder as time goes on and they remain undetected. Frequency of thefts and amounts taken increase until the habit is out of hand even in the mind of the employee.

The solution to internal theft lies in the culture of the company itself. Policies and procedures are designed and implemented which require certain job functions to be directly supervised or periodically audited to preclude continued employee theft. The fact that this happens should be communicated to all employees as they are hired and reinforced regularly. This should include every job function fro trash disposal (what else go out with the trash?) to the accounting department (does the same person do receipts, deposits, and disbursements?)

Maybe it’s time to take an objective look at your company’s policies and procedures and whether or not they’re being enforced consistently.

Loss prevention consultants have experience in analyzing and correcting any deficiency that allows employee theft to exist and thrive. An expert in loss prevention investigation can quickly and economically focus on those areas of the business that actually encourage internal theft through lack of attention.

To speak with a loss prevention investigator about employee theft, internal theft, or an employee theft investigation, call 1-770-426-0547 or click here for more information.

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Employee Theft is a Crime in Atlanta Georgia

May 17, 2011 by Staff Editor Leave a Comment

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.

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Employee Theft in the News

May 15, 2011 by Staff Editor Leave a Comment

Most employee theft cases never make the news, but the highly unusual ones or those that involve tens of thousands of dollars sometimes make it to the six o’clock broadcast or the local morning paper.

One such incident occurred recently near Albany, NY, when an employee of a major retailer was arrested and charged with the theft of over $42,000 in jewelry since 2009. That’s a lot of jewelry, even for a department store.

Read the entire story here.

The theft was discovered by Loss Prevention and store management when a merchandise audit showed an excess of items unaccounted for. When the loss prevention investigator confronted the employee, she was wearing some of the stolen jewelry.

The takeaway from this story was in a quote by the police lieutenant assigned to the case: “When we get these internal theft cases, it’s someone they trust. It ends up being a significant amount of money before it’s found out.” He added the internal theft of this magnitude happen about six times a year at his department.

According to the police, the ex-employee sold some of the jewelry to pay bills, kept some for personal use, and gave some away as gifts.

No matter the reason, employee theft hurts businesses both large and small. As a matter of fact, it probably harms small businesses even more, since they operate on smaller revenues, and don’t have an employee specifically tasked as a loss prevention investigator. Small business’ ownership and employees are generally more close-knit and more like family than those of a large employer. Because of familiarity, there is a tendency to trust employees of a small business more and give them more responsibilities with less supervision.

When a small business owner suspects internal theft, it is difficult for him to view the situation from an objective standpoint. Frequently by the time there is an indication of employee theft, the problem has reached a point where it goes deeper than one employee and involves large amounts of merchandise, money, or other assets.

Loss prevention consultants can develop and conduct loss prevention audits that will expose vulnerabilities in supervision, policies, and procedures. If a problem is suspected, loss prevention consultants can isolate the cause and determine the solution. If there are dishonest employees involved, the loss prevention investigator has the ability to gain knowledge through interviews with key personnel and make appropriate recommendations.

Don’t wait until employee theft puts you and your company in the headlines. Take action to prevent it from happening in the first place with an unbiased and objective analysis from experienced loss prevention consultants.

Call 770-426-0547 to discuss your employee theft suspicions with an experienced loss prevention investigator, or click here for more information.

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Employee Theft – It Could be Worse

May 13, 2011 by Staff Editor Leave a Comment

That’s right, your problems with employee theft could be worse if you had hired a person like the one who worked at the U.S. Marshal’s Service in Washington, D.C.

According to an article at the Examiner online a ten-year employee was sentenced in Federal Court to 21 months in prison plus 3 years probation and restitution of $104,000.

What made this case seem unusual to me were the different ways the former employee who worked as an administrative officer at the Superior Court found to defraud her employer. None of these ways by themselves are all that unusual, but for one person to come up with these schemes shows that she really put forth some effort to get over on her employer. Just one avenue of employee theft was not enough.

The ex-employee admitted to:

· Used an agency credit card to pay personal expenses
· Created a fictitious employee and submitted false time and attendance records for that employee for a year, converting the payroll dollars to her use
· Had U.S. Treasury checks issued to pay down the balances on her personal credit cards by referencing false invoices

The grand total of admission was $104,000 – your and my tax money, by the way. Aand this is probably al she could remember. Surely there’s more.

Of course the really ironic thing about this article is that the victim was the U. S. Marshal’s Service.

If a federal law enforcement agency can become a victim of employee theft, what chance do the rest of us have?

Lesson learned: Never let one employee, no matter how trusted, take so much responsibility that no supervisor or auditor ever checks up on all their work functions; Require at least two sets of eyes on every disbursement before the money is paid; Audit payroll occasionally; Review company credit card activity often; Trust but verify!

White collar crime has a huge impact on private businesses in every category. Each business has to take the initiative to protect itself from internal theft. Loss prevention consultants are business-oriented professionals who act to prevent employee theft through an objective look at the business’ policies and initiate and conduct an employee theft investigation if called for, and bring an unpleasant situation to a satisfactory conclusion.

Call 770-426-0547 to speak with one of our loss prevention consultants about potential employee theft situations or an employee theft investigation at your business, or click here for more information.

Filed Under: Uncategorized Tagged With: employee theft, employee theft investigation, internal theft, white collar crime

Employee Theft: An Unauthorized Benefit in Atlanta Georgia

May 11, 2011 by Staff Editor Leave a Comment

Employee theft often comes as a surprise and a shock to a business owner who discovers that he’s become a victim. The employer frequently feels betrayed, particularly if the theft occurred from a small business, because the thief is someone almost like family, well liked and trusted. The employer thinks that here is someone who he gave a job to, paid a fair wage, advised and trained and is repaid by having money taken from his pocket by a thief.

So why do employees steal and what can an employer do to soften the blow? First the employer should know whom he is hiring. Even if the applicant is Aunt Fanny’s preacher’s cousin, the wise employer is going to check his background and talk to some former employers. Ask the right questions during the interview to be sure the applicant is going to fit in to the organization with as little baggage as possible.

Employees may steal to support a habit – alcohol, drugs, gambling, boy or girlfriends; there may be a legitimate need for more money – illness, fire, accident, or some other tragedy; there may be simple greed – just wanting things that aren’t affordable; perceived injustice – an expected raise that doesn’t come through, a disciplinary action, or reduction in hours. Any number of things may cause and employee to steal from work. After all, what easier place is there to steal from than one the thief is familiar with and everyone knows and trusts him?

Because an owner can’t be everywhere at once, and because a certain amount of delegation is necessary, employee theft is going to happen.

What does an owner do if he suspects internal theft may be going on? As hard as it will be to do, the problem must be faced objectively. In the words of Deputy Barney Fife of Mayberry, “You’ve got to nip it… Nip it in the bud!”

An employee theft investigation is a specialized type of criminal investigation that requires a certain kind of mindset to conduct. The loss prevention investigator is part cop, part businessman, and part auditor. He or she will gather and assess the evidence of the crime, whether it’s merchandise or money. After that, a plan of action might be surveillance, witness interviews, or maybe interviews with those suspected of the criminal acts.

Frequently, it’s better for a business owner to use a qualified loss prevention investigator to conduct the employee theft investigation as an objective outside and experienced source. The loss prevention investigator will advise the owner of the steps that can and should be taken to bring the investigation to a successful conclusion, from restitution to prosecution, efficiently and economically.

Call 770-426-0547 to discuss employee theft with an experienced loss prevention investigator in Atlanta Georgia or click here for more information.

Filed Under: Uncategorized Tagged With: employee theft, employee theft investigation, internal theft

Conducting An Employee Theft Investigation – Atlanta Georgia

May 1, 2011 by Staff Editor Leave a Comment

Simply put, an employee theft investigation is when you, or your designated loss prevention investigator, look into a suspected incident of internal theft. Any number of things can alert you to an employee theft. Sometimes it’s a tip from another employee or a customer and sometimes it may be little more than a hunch. It’s not terribly important what originally prompted you to begin an employee theft investigation, but what comes next is extremely important.

When gathering evidence of an internal theft it is important that you be thorough. Let’s say you’re watching a cashier and through CCTV you observe him/her remove a $20 bill from the register and slide it in their pocket. A clear cut case of employee theft, right? True, but do you really believe that was their first time dipping into the till? Go back and review all of that cashier’s prior transactions for the past 2 weeks to a month. This should give you a good idea of the frequency in which they have been committing internal theft and let you know if you should continue going back farther.

Once you have gathered enough evidence then, and only then, do you bring that individual back for an interview. Accusing an individual of something as serious as employee theft can open you up to a lawsuit if you don’t have the proper proof to back up such statements. Once you do bring them back remember that your goal is a simple admission of guilt. Be professional and courteous. Your words and actions may come back to haunt you in a court of law if you’re not. Once the confession is obtained your employee theft investigation is complete.

For more information contact us at Employee Theft Investigation or call 1.770.426.0547 – Atlanta Georgia

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Preventing Internal Theft Through Education – Atlanta Georgia

April 29, 2011 by Staff Editor Leave a Comment

I’ve found that one of the best ways to prevent internal theft is by educating loss prevention consultants on proper cash handling procedures. Let’s face it, we’re experts on the many different ways to prevent shoplifting, and many of us can conduct a simple employee theft investigation flawlessly. However, quite a few loss prevention consultants are not well versed on simple cash handling procedures that can make it easier to spot when something isn’t going the way it is supposed to.

Early on in my career I had many an employee theft investigation that took far longer than it should have because when I witnessed something suspicious in the cash office I had to contact another manager (and hope that they weren’t involved in the scheme as well) and ask for their input because I had never worked a cash register or worked in a cash office before and wasn’t sure what to look for. There are steps one must follow in order to prevent shoplifting. In the same way there are steps that must be followed to prevent internal theft.

Before you can begin an employee theft investigation you must understand the normal operating procedures and be able to identify when something isn’t being done properly. Next, you have to be able to tell whether the mishap is a simple mistake, someone cutting corners, or an employee attempting to steal from the company. I’m a firm believer that the best way to know and understand a process is by actually doing it. So I would advise any and all business owners to put your loss prevention consultants through a short training course on register operations and cash handling procedures. The benefits will go a long way towards reducing internal theft in your organization.

For more information contact us at Internal Theft or call 1.770.419.0547 – Marietta, Kennesaw, Cobb County, Atlanta Georgia

Filed Under: Uncategorized Tagged With: employee theft, employee theft investigation, internal theft

Employee Theft – More Than We Know

April 27, 2011 by Staff Editor Leave a Comment

When faced with unknown business shortages and losses, employee theft is often not on the initial list when owners seek answers.

Business owners and employers usually look at all the other possible causes for missing merchandise, property, or cash. External theft, shoplifters, vendor shortages, bookkeeping or accounting errors, or almost any other imaginable reason is considered before turning an eye of suspicion toward a “valued and trusted” employee.

Internal theft is often left to go on unstopped for months or even years because of misplaced trust by an employee. As a matter of fact, many cases of employee theft are only discovered when the guilty employee is away from his or her job for a period of more than a couple of days, and the replacement uncovers a situation such as an unusual check, or missing merchandise that the thief was always able to cover up when left alone without supervision or without ever having another employee check his work. A policy of checks and balances and shared job responsibilities tend to deter large thefts by employees.

When considering employee theft, look at every way that assets can be appropriated by employees. Think of salespeople, receiving, accounting and other office personnel. How many ways are there that employees in different positions can get away with theft? Retail business owners frequently turn to qualified experts, loss prevention consultants. Based on years of experience and practical application, a loss prevention agent will efficiently assess vulnerabilities and offer solid suggestions and solutions to assist the business owner in eliminating the conditions that allow internal theft to occur.

A loss prevention agent is also useful when the storeowner suspects that there is a n employee on payroll who is stealing from the business – in effect from the owner. A loss prevention agent can then be contacted and conduct an internal theft investigation. The loss prevention agent can assess the situation with an investigator’s eye, and remain totally objective as he develops facts and conducts interviews with the staff. A skilled interviewer will draw definitive conclusions about any theft involvement of employees. Emotion will not be a factor as the results are delivered to the owner, who will then make the appropriate decisions for the benefit of his business.

Employee theft is a national problem that comes to light locally all too often.

For advice on employee theft, call loss prevention consultants at 770-426-0547 or click here for more information.

Filed Under: Uncategorized Tagged With: employee theft, internal theft

Keep an Eye Out for Employee Theft – Atlanta Georgia

April 25, 2011 by Staff Editor Leave a Comment

What are some of the first indicators of employee theft?

It all starts when an employee with a need realizes that there is an opportunity to get merchandise, supplies, or money, from the place where he works, and there is little chance that the theft will be uncovered.

Frequently, the employee starts out by “borrowing”, and may even intend to pay back the company for his thefts, but times goes by without his being detected and the amount stolen gets out of hand. And the amounts taken seem to increase by incident as the thief becomes bolder.

The business owner should look for certain signs in the employee or groups of behaviors that might indicate dishonesty in an employee.

Does the employee live beyond his means? He may have come into a large inheritance, or he may have bought his new BMW with an unauthorized salary increase?

Has the employee’s behavior changed? Does the employee seem to be suspicious or defensive?

Is the employee very protective of her duties and reluctant to let anyone else relieve her? An employee only takes one or two days off at a time, or even delays or forfeits vacation may not be so much dedicated as they are defensive, and wants to avoid another set of eyes scrutinizing her work.

Are there indications that an employee has a problem with alcohol, drugs, or gambling? These are often expensive habits to feed, sometimes fed by employee theft.

Does the employee get more than her share of personal telephone calls? Could they be calls from collectors? Does the employee appear secretive when talking on the phone? There may be financial issues that are causing excessive pressure for the employee.

Are there customers or vendors who only want to deal with a particular employee? The employee may be offering excellent service, or they could be giving “friend” discounts or working in collusion with a vendor to steal merchandise.

This is by no means a comprehensive list of employee theft indicators nor do these actions definitely point to theft, but may indicate the need to manage that employee more closely so that there are no surprises to the company.

If you have a suspicion of employee theft, or want more information on the prevention of internal theft, call 770-426-0547 or click here in Atlanta Georgia or anywhere in the U.S.

Filed Under: Uncategorized Tagged With: employee theft, internal theft