“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

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

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

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

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.

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

If you’re anything like me you are well aware of the existence of employee theft and the potential evil that dwells within the hearts of men (and women). However, you may not know to what extent that evil has grown within the last few years. “One bad apple spoils the whole bunch”. It’s a term I have heard my whole life and a belief I took with me into loss prevention. In short, I believe, not that everyone is a thief but that everyone has the potential to steal, so I keep my eye on everyone because I don’t know who the thief is. A recent report has changed my way of thinking.

The FBI has recently been quoted as saying that employee theft is “the fastest growing crime in America”. The U.S. Chamber of Commerce estimates that 75% of all employees steal from their workplace and that most do so on a regular basis. Furthermore, the American Society of Employers estimates that 20% of every dollar earned by a U.S. company is subsequently lost to employee theft. The problem is much bigger than most of us believed. There’s not just one bad apple in the bunch that we have to look out for. Whether it is the country’s economic state or the continual erosion of benefits the fact is that the face of the American workforce is growing grim.

1/3 of all U.S. corporate bankruptcies can be directly attributed to employee theft. It has also been reported that U.S. companies loose close to $400 billion a year in lost productivity due to time theft. These numbers are staggering and if they scare you then count yourself among the intelligent. The threat is real and the enemy is within the gates. It is critical, now more than ever, that companies get serious and focus on cracking down on employee theft, before it’s too late.

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