Refunds and internal theft have the potential to go hand in hand when you’re dealing with a trained crook. Picture this: An employee sells a television set; a week later the same employee rings a return on that television set. Nothing out of the ordinary, right? No, not until you take a closer look at your inventory and discover that you happen to be short 1 television set. Why? There was no return. The employee simply kept a record of the sale (as a lot of commission sales associates are known to do) and when nobody was looking he rang in a return and pocketed the cash that was supposed to go back to the customer. If nobody is paying attention he/ she could rack up hundreds of thousands of dollars this way.

So, how do you prevent internal theft when it comes to refunds? First of all, insist on a merchandise inspection by someone other than the person doing the sale or the return. It’s important to make sure the merchandise isn’t damaged or in some way altered before you put it back in your stockroom anyway, so why not make it mandatory that it is inspected at the time of the return? Ensure that the person doing the inspection knows what to look for. Make sure the item in the box is the correct model/ brand, etc. Many dishonest employees may be working with someone else. They sell their buddy a $120 toaster and 2 days later he returns one he bought from a rummage sale for $4.

You should always keep an eye on all credit documents. Periodically make phone calls to customers who have made returns to ensure they got their return and to inquire whether there was something wrong with the product, etc. It’s good customer service, but more importantly it’s a great way for you to know whether you have a problem with refunds and internal theft .

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

We’ve all got a popular salesperson in our organization who the public seems to love, but are you sure that this person isn’t a vehicle for employee theft ? As a business owner you thank the heavens when you find a salesperson that seems to identify with your customer base and repeatedly provides great service and drives repeat business. However, you need to keep a watchful eye on these “godsends” as well. Find out what they’re doing that makes them so popular with the customers. You may not always be happy with what you find.

I was once briefly acquainted with a saleswoman who we’ll call Jan. When I say “briefly acquainted” what I really mean is that I fired her for employee theft . Jan was the most popular salesperson I had ever seen; customers would stand around the store for hours waiting for her to be free and able to handle their transactions. I soon found out why being serviced by Jan was in everyone’s best interest. Jan was regularly giving extraordinary discounts to customers in an attempt to gain their business and their loyalty. When she couldn’t find a way to give a deep discount she would simply switch the tickets on the merchandise and make the sale that way.

The business suffered extreme losses as a result of her actions but her commissions were through the roof. Pay close attention to any salesperson that gets constant visits from friends or the same customers. Track their point-of-sale transactions and ensure that they’re actually popular for their outstanding customer service and not because they’re giving away the store underneath your nose. Employee theft is a serious problem in every business and it is often because we place our trust in the wrong individuals.

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

Employee theft is potentially one of the most dangerous hazards to the bottom line of any small business. In some cases dishonest employees account for up to two-thirds of all company losses. Yet some companies still don’t take the proper precautions to safeguard their profit margins. Doing so is largely a matter of careful pre-employment screening and selection. Reference checks, credit checks, psychological tests and personal character examinations are all tools you can use to ensure the person you are trusting with your business and its’ success is worth your trust.

Even the savviest employer can be fooled by a dishonest employee. For example, I was helping out a colleague in a nearby town a while back. When I arrived he was in a meeting so I sat in the waiting room for a while. A young man arrived shortly after me and we struck up a very pleasant conversation about the city, the company and life in general. I have to admit I was quite impressed with his eloquence and his knowledge of business. My friend emerged moments later and grimaced noticeably at the sight of the young man. Once we were in his office, my friend explained that the young man was being terminated for lying on his application. He had a substantial criminal history, including two counts of sexual assault against a minor. I was appalled. How could such a fiend seem so… regular? However, the truth is that they often do.

True, there is no sure way to stop employee theft completely, but a pre-employment screening can go a long way to giving you some peace of mind. In the case above the young man was terminated before he had a chance to commit a crime against the company. However, they still spent countless dollars training him, man-hours to investigate and terminate him, then more money to train his replacement. A pre-employment screening could have saved them a lot of trouble and money. Reducing employee theft starts at the very beginning of the hiring process. Good people equal good business.

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

Signals that will expose possible employee theft or internal theft with goods or money.

• Certain salespersons who, with a certain regularity, certainly higher than average, are found to have accepted false or stolen credit cards or other false documents. This often indicates collusion. In exchange for accepting the false card or document the salesperson may add an extra amount to the invoice. The difference is subsequently taken from the till without a loss showing.
• The discovery of non-branch products on the premises can indicate the presence of a private-shop-within-a-shop. For their own account, one or more employees buy products for cash and sell them on. Barmen/maids may also bring their privately bought bottles and sell them at bar prices, pocketing the income.
• A employee that is involved in internal theft is often recognised by his or her own deviant behaviour. Exaggerated preparedness to do extra or work overtime have already been mentioned, but note also a reticence to delegate, or not to take holidays or only take short ones. Delegation or absence could lead to discovery.  Someone keeping everything locked up when other employees would not, or breaking off telephone conversations when someone approaches may be indications of fraud.
• If a company closes for an annual holiday period, the amount the fraudster has ‘lost’ during the enforced holiday period will often be made up during the days after a return to work. The result is a sharp increase in the company’s losses during this period.
• If a sudden rise in telephone or Internet costs is noted, it may be a good idea to ask for a specification or check the computer log. This may reveal visit to pornographic sites or telephone numbers, or surfing the net at the company’s expense.
• Sometimes physical characteristics play a role. The most frequently seen in perpetrators whose motive is prestige is the possession of company keys or a key-card with general authorisation. Such a person derives status with every jangle of their key ring or use of the card.

All types of employees can be involved in employee theft or internal theft . Do not over look someone who does not have access to cash. Could they be submitting falsified expense reports, or stealing your customers credit card numbers. Employee theft and internal theft can also show up in the relationships your employees have with Vendors and Delivery People.

I know I keep saying this but remember it is less expensive to have an over all prevention program in place and conduct an occasional employee theft investigation than the other way around. Most of the time an employee theft investigation only takes a day or two but prevention is still the key.

Watch for more parts to come in future blogs!

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

Signals that may point to possible employee theft or internal theft with goods or money. Do not forget you must train your employees what to look for. They will help you prior to an employee theft investigation .

• An increased frequency of reports of faults in delivered goods.
• Faults noted by the same employee despite other personnel carrying out the same checks.
• Personnel repeatedly fail to follow instructions such as daily bank deposits of cash.
• The seeming forgetting of important daily tasks such as switching on the alarm, closing doors, or storage of expensive property in special cupboards being followed by a break in or ram-raid.
• Branch employees ‘forget’ to report losses or other unusual events or are repeatedly the ‘victim’ of an unfortunate incident or circumstance.
• Checks or opening and closing times show deviations such as extremely early or late times, whether or not on the same day every week.
• Opening the premises during closing times to show round family and friends etc.
• Ringing up packed goods of various quality and cost for the same price.
• Giving the customer various goods but only passing the cheapest article past the scanner. Security measures are removed and all articles are bagged as normal.
• Allowing theft by acquaintances and when the alarm at the exit sounds has a ‘friendly’ (security) colleague carry out the bag check.
• The salesperson attaches a bar code for a cheap article to their wrist and scans this but acquaintances take dearer articles. Also in this case the till display window is often covered or turned away.
• The giving of reductions by the salesperson to the purchaser without this reduction being registered and the article subsequently being returned for the full amount.
• Third parties such as suppliers, collect-clients and drivers are discovered at business locations where they should not be, promptly followed by a report of shortages that are put down to the unregistered visitor.

Employees that steal will not wave a flag that says here I am. You have to watch and be on the lookout at all times. Internal theft or employee theft will be hidden from your view. It will also be made to look like something else such as a mistake. Do not be mislead look for employee theft or internal theft beyond the “facts” you are given. Do not be afraid to ask questions and demand answers. In most cases what you find will then require a quick employee theft investigation to dig the reat out.

Watch for more parts to come in future blogs!

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

These signals will reveal employee theft or internal theft

· Shifting turnover to cheaper products or services by which means the number of sales remains the same but the average sale drops.
· Unexplainably high expenditure patters of one or more members of staff.
· Discovery of offers of your own assortment on notice boards in supermarkets and other places with only a telephone number, whether or not the number of a member of staff. In particular, mobile phone numbers deserve attention.
· Personnel who are always the first to own the newest, dearest and most trendy articles without having purchased this from staff sales.
· Personnel who rebuild their home with materials that the employer sells, without having made use of staff sales.
· The borrowing of company products or tools without proper registration whereby the borrowing may become permanent.
· The lending of goods to employees with a lending ticket without checking that the ticket is not used to take goods every day.
· Personnel wearing clothing made by the employer without having made use of staff sales.
· Unexplainable rises in breakages or losses.
· Higher turnover of items that fall under the heading ‘useful for home’.
· Keeping storage places untidy and dirty despite repeated instructions to make them clean and tidy.
· Employees who voluntarily take upon themselves unpopular tasks such as taking out the rubbish, cleaning after working hours, etc..
· Employees who noticeably frequently find an excuse to “just pop out for a minute” and often carry goods outside.
· Regularly discovering empty packing boxes in the stores in between full boxes, or discovering packing materials in other places.

By now you understand that you must be actively involved when preventing internal theft or employee theft . Prevention is the key. Do not be afraid to look into these situations. That in itself is a prevention technique. Do not wait until it is out of control to have an employee theft investigation conducted. An employee theft investigation is then done if prevention efforts are not successful.

Watch for more parts to come in future blogs!

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

These signals can reveal employee theft or internal theft 

· A further point to the two previous points is that the till display is often turned away from the customer or hidden behind advertising material.
· Cashing up at the end of the day shows multiple till openings without demonstrable reason.
· On checking an X or Y till roll, often a 0 strike or the amount of a carrier bag or some other minimal amount can be seen. This may indicate the intention to open the till between sales.
· Between sales openings of a till usually take place at particular times such as coffee, lunch or tea breaks or at times when there are no other people around.
· Surplus cash often indicates the temporary impossibility for the fraudster to take cash that has not been rung up.
· An abnormally high need to change money, or withdrawing more money than is really changed, often has the intention of creaming off the fraudulently created surplus cash.
· A strong rise by one salesperson of the number of sales (increase in bonus) as against their colleagues can mean the sales of extra guarantees or maintenance contracts without the client being aware of it.
· Clients wrongly reporting to the rear door of the premises.
· Storage of stocks at temporary locations, often near the exit or on top of lowered ceilings, for example in toilets.
· Rear doors or side doors which, against the rules, are often found unlocked.

Keep in mind that internal theft and employee theft will never stop on its own. Most employees that steal will only get more comfortable with their theft. An employee theft investigation must be conducted to stop the bleeding. Simply firing the employee will not solve the problem. Where did they learn it? Who else is stealing? Keep in mind that an employee theft investigation is generally a very quick process (usually a day or two). Also employees that are involved in internal theft or employee theft associate with others that do the same.

Watch for more parts to come in future blogs!

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