internal theft — Page 24

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.

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

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

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

Another Employee Theft Case

April 23, 2011 by Staff Editor Leave a Comment

Another employee theft case shows the need for redundancy in job duties and the necessity of adequate supervision and follow up.

An accounts payable clerk for a Pennsylvania security company was recently arrested and charged with the theft of over $880,000 from the company. [Read the full story here at lancasteronline.com.]

The woman, an employee since 2003, stole the money over a period of six years. She would endorse checks to herself and deposit them in her own account in amounts ranging from $1000 to $3500.

The employee theft was discovered, as many often are, while the employee was away from work for a while, and another employee had to look at the bank statements.

Upon her return, her employment was terminated and the owners continue to investigate the case. Initially, the thefts were thought to be around $17,000 and the investigation was handed over to the police department, who discovered the rest of the missing funds.

According to the owners, the former employee was allowed to handle all financial transactions for the company. The detective assigned to the case was quoted as saying, “Businesses put people in these positions because they feel they can be trusted – then those people take advantage of that trust.”

This business is fortunate that the police department was able to fully investigate this incident. Frequently, police agencies have their hands full with violent crimes and other types of theft to adequately devote the manpower to white collar crime, unless it involves, as this case does, large amounts of money.

To prevent employee theft, companies write procedures and job descriptions that delegate responsibilities for cash handling to several employees so that the duties are separated. This greatly reduces the opportunity for embezzlement.

At the first suspicion of internal theft of any kind, a business should contact an expert, a qualified loss prevention agent, to investigate and solve any improprieties. A loss prevention agent with a background in business understands the concerns of the business from the standpoint of recovery and prevention and is able to assist the business owner in avoiding instances of internal theft in the future.

A business oriented loss prevention agent can help prevent and correct employee theft.

Call 770-426-0547 to speak with a loss prevention agent or click here if you have suspicions or concerns about employee theft for more information.

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

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

Filed Under: Uncategorized Tagged With: corporate fraud investigation, corporate fraud investigator, employee theft, employee theft investigation, internal theft

Function of the Corporate Fraud Investigator – Atlanta Georgia

April 15, 2011 by Staff Editor Leave a Comment

Shrink can come from many different areas and often times it is the job of the Corporate Fraud Investigator to identify and eliminate that shrink. In the loss prevention field we are all aware of, and remain on the lookout for, internal theft and external loss coming from shoplifters. It is equally as important, however, that we maintain a watchful eye on our supply chain. Vendor fraud and office supply scams are on the rise. We need to be mindful of this and take steps in order to combat it.

The corporate fraud investigator needs to ensure that the business is aware of it’s’ rights. You are only required to pay for the goods and services that you actually purchased. In other words, if you ordered 500 pens from a particular company and when you received the order there are 500 pens and 200 notebooks. The corresponding invoice will undoubtedly charge you for those 200 notebooks. However, since you did not place an order for that item you are not required to pay for them. This is why it is important to keep organized records of all your orders to ensure that you’re not being overcharged by an unscrupulous vendor.

Additionally, you should assign one individual in your organization to handle the duties of ordering new supplies. This will prevent redundancy in your process and help you identify most scams and attempted fraud much easier. Be aware that mistakes do happen in all aspects of business. If the discrepancy appears as a result of a simple oversight you should do your best to correct the mistake as quickly as possible. However, if the discrepancies are repeated and no resolution reached it is time for the corporate fraud investigator to step in to resolve the matter by whatever means are necessary.

For more information contact us at Corporate Fraud Investigator or call 1.770.426.0547 – Atlanta Georgia

Filed Under: Uncategorized Tagged With: corporate fraud investigator, internal theft

Employee Theft Strikes Close to Home

April 12, 2011 by Staff Editor Leave a Comment

A recent article from the Plasticsnews.com website highlighted an unusual case of employee theft.

It seem the 78 year old husband of a 75 year old business owner submitted an expense report for $12,474 (hand written of course) annotated “Golf Weekend”. The husband, executive vice president of the company, had only attached receipts totaling around $700, according to the company treasurer, who apparently isn’t related. When asked about the discrepancy, he replied that he added wrong. Then he claimed someone had altered the claim, but a police handwriting analysis disproved that claim.

When employee theft was suspected, the auditors went to work and uncovered “questionable claims” back to 2003 totaling almost $70,000 including a $1500 tip and $11,000 in golf clubs and related expenses.

The owner said that when she questioned him about it, he quit and they haven’t spoken since.

The employees in accounts payable of the 700-employee company said they didn’t think they had the authority to question the claims because he was the owner’s husband.

All this goes to prove a point. There is never any employee who is above reproach in any company. Sometimes – usually actually – employers tend to overlook certain employees as suspect because “she’s our most trusted employee.” When you think about it who has more opportunity to commit internal theft than someone who doesn’t feel as though he will be suspected and who knows the company’s procedures and vulnerabilities backward and forward?

When in doubt, smart business owners bring in a disinterested third party such as a qualified loss prevention investigator to take an unbiased look at the operation, ask the right questions of the right people and get to the bottom of any employee theft.

Have questions about employee theft? Click here for information or call 770-426-0547 to speak with an expert.

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