When Loss Prevention Systems does an internal theft investigation we produce a report at the conclusion. Most of our investigations only take a day or so to conduct. Here is one from a recent investigation. The names have been changed to protect the guilty.

Confidential

Investigative Case Report

On January 18, an internal theft investigation was initiated by Loss Prevention Systems, Inc. (LPSI) at the request of Mr. X, Executive Vice President.

Mr. X stated that David Jones (not his real name), Stock Clerk, had made unauthorized changes in the POS security functions.  It was established that Jones had accessed the POS system and given himself authorization to process voids, refunds and other management level functions.  Mr. X terminated Jones for his actions. Investigation by LPSI did not show any suspicious transactions related to these unauthorized management level functions.

During an interview with Jones, he admitted to the theft of $2,250 in merchandise and $480 in cash from the store.  Jones stated that he stole merchandise by simply walking out the door with it or putting it outside the backdoor and picking it up later. Jones stole cash by doing fraudulent discounts on merchandise for friends and ex-employees.  No evidence could be found involving fraudulent refunds or voids.

It was learned during the investigation that Jones is on probation in (a Georgia ) County for employee theft from a previous employer. Jones incorporated his admissions into a written and signed statement.

All information and investigative facts developed during this internal theft investigation were turned over to Mr. X. Additionally, law enforcement officers will be contacted and criminal charges will be filed. A copy of this file will be forwarded to Legal Counsel.

Notes: This internal theft investigation could have been easily prevented. The problem started with loose controls, which allowed an employee thief to give himself access to the company’s computer and POS systems. In addition a stock clerk was given access to exit the rear of the store without management be present.

A background check would have brought the previous criminal conviction for employee theft to light when he applied for work with our client.

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

Signals that indicate possible employee theft or internal theft with goods or money

· Your exclusive products are being offered for sale at locations not on your client list and at strongly reduced prices.
· Regular clients complain about unfair competition.
· Personnel are sounded out about the receiving of gifts and are asked about exchange trade.
· Customers only want to be served by one particular salesperson and say they will come back later if that person is not available.
· Customers only want to be served by one particular salesperson and wait until that person is free if they are engaged with another client.
· Signals of meetings between drivers/transporters en route on parking places and back roads where goods can be transferred.
· Unknown transporters or representatives appear on the premises without appointment or a demonstrable reason to talk to staff.
· No, or inadequate, regulation of staff purchases.
· Seemingly returned goods credited and then put through as a staff purchase against reduced price. This ensures a correct balance of stock and cash.
· An unexplainable rise in staff purchases suggests trade or fraud with credit bookings.
· Making no use of staff purchases can indicate that a person has no interest in the goods but may indicate theft.
· Multiple uses of staff purchases, including using a colleague’s name, may indicate own trade and false competition.
· An unexplainable rise in stock differences in certain attractive product groups, either very desirable, dear or small, or a combination of these traits.

Many times several of these signals are seen in one employee. One item by itself may not be employee theft but a mistake. Look for one or more in a person. Remember, employee theft or internal theft should always cause you to have an employee theft investigation conducted . Do not bury your head in the sand, intern theft will not go away on its own. It WILL get worse. Many times employers are resistant to have an employee theft investigation preformed because it will “offend” good employees. What offends good employees is to see unchecked theft going on around them.

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