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.

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

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

Most people don’t think about employee theft unless it affects them directly.  But employee theft does affect everyone every day.  The business that suffers from internal theft, whether it’s in the form of cash, property, or merchandise either has to recover the amount of loss by increasing prices to consumers, or by going out of business altogether. The U.S. Chamber of Commerce has estimated that 3 out of 4 business failures are attributable to employee theft of all types.  However, business owners frequently don’t look at internal theft as a cause of loss because they don’t want to admit that they can’t trust their own employees.

In the case of government workers who steal, the taxpayers suffer (it’s their money after all), and the intended recipients of whatever program was targeted also suffer.  A school official in Maryland was recently accused of stealing over $100,000 of federal funds intended for economically disadvantaged students.  The five-year employee bought computers, video game consoles, TV’s, and other electronics for herself and her family members.  Tax money – yours and mine – went into that employee’s pocket.

But as aggravating as stealing from the government can be, stealing from a business can be financially devastating.  Employee theft can also become almost commonplace if ignored by management, as more and more employees see that there are no consequences to the act.

The important thing for an employer to do if he even suspects that there is theft occurring at his business is to initiate an employee theft investigation using a qualified and experienced loss prevention investigator.  Not only is a loss prevention investigator trained and experienced in getting to the bottom of theft problems, he has the advantage of seeing the situation with an unbiased eye toward the employees.  One survey indicates that 55% of employees who steal are managers.  And overwhelmingly, the thief is someone that the employer placed a great deal of trust in.  The investigator will also point out vulnerabilities found in controls and procedures that allowed the situation to exist, and be able to advise ways to prevent such instances of internal theft and others from occurring in the future.

Call 770-426-0257 to speak with a loss prevention investigator about your employee theft issues, or click here for more information.

What goes through an employer’s mind when he realizes that he is a victim of employee theft?  Anger?  Betrayal?  Revenge?  Helplessness?  Disappointment?

Certainly most of emotions are legitimate.  An employer takes a person into his company, gives him an opportunity to learn, work, and succeed, pays him a salary to do it, puts him in a position with some degree of trust and yet the employee still injures the company and the employer by taking merchandise, property, or money that doesn’t belong to him.

After an employee theft investigation has determined that an employee was indeed guilty of theft the employer may consider if he himself had anything to do with the failure.

In many cases, the answer is yes, because for internal theft to occur, the thief must have opportunity and motive to steal.

An employer should convey to each employee from the day he is hired, that it is not all right to steal.  Not from the company, not from a customer, and not from another employee.  Most people know this already, but it never hurts to lay a groundwork that is clearly understood, and that is that the company culture does not tolerate theft or those that tolerate it.

Adequate supervision is a must.  An employee who knows that his work is subject to review is less likely to commit an internal theft episode.  This goes for every employee from the porter who takes out the trash (Do you ever check the outside trash area for stolen property?) to the bookkeeper (Avoid giving too much responsibility to one individual), and everyone in between.  Supervisors and managers are not immune to committing employee theft; as a matter of fact, they can cause more damage for a longer period of time than a “regular employee” because of their positions of trust and responsibilities.

Assign job responsibilities so that a system of checks and balances exists, lessening the odds that an employee can engage in internal theft undetected.

Don’t exempt any employee from these rules.  In most employee theft investigations, the thief almost always was “one of my most trusted employees”, according to the owner.

Do you need an employee theft investigation or just want to know how to avoid employee theft and not become a victim?  Call 770-426-0547 in Atlanta Georgia or click here for more information.

 

 

Do you think your company is suffering from internal theft? Do you need an employee theft investigation? If you think just because you have had the same employees for years or because they might be your friends or family, here are a few things you might need to know.

According to the National Retail Theft Survey, 43% or over 14 billion dollars of retail loss is due to employee theft. Employee theft is as prevalent as it is because of many reasons. One of the main reasons is that employees over time begin to feel a sense of entitlement. More times than not an employee will justify stealing something before they do. Whether it is something small and they think no one will notice or that it is “owed” to them because of things they have done “for the company” in the past.

Employees can rapidly become used to the idea of stealing and something that they had to justify becomes a part of their routine. This is where an employee theft investigation is needed. Internal theft, if not handled swiftly, can destroy a company’s bottom line. What could begin as a single person can quickly become multiple people in different divisions of your company. Once someone realizes that what they are doing is not being discovered they will usually pass that information on to coworkers.

Hopefully you can prevent this from happening to you with a loss prevention program, but for most this is a daily occurrence costing companies billions of dollars a year. If you think that employee theft might be a problem in your company, let us help you stop the bleeding.

For more information on how we can help prevent employee theft, employee theft investigation or internal theft contact Loss Prevention Systems, Inc. at 1-770-941-0547 or contact us at employee theft investigation – Atlanta Georgia