internal theft — Page 26

Preventing Employee Theft – Part II – Atlanta Georgia

March 17, 2011 by Staff Editor Leave a Comment

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

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Preventing Employee Theft – Atlanta Georgia

March 15, 2011 by Staff Editor Leave a Comment

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

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Internal Theft Methods – Atlanta Georgia

March 13, 2011 by Staff Editor Leave a Comment

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

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Signs of Employee Theft – Atlanta Georgia

March 10, 2011 by Staff Editor Leave a Comment

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

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A New Form of Internal Theft – Atlanta Georgia

March 8, 2011 by Staff Editor Leave a Comment

Just this past week I was introduced to a new form of internal theft. This particular kind involves 2 people: the employee, of course, and a customer/ counterfeiter. That’s right. We all know counterfeiting exists and just about any retailer with good sense has invested in a continuous supply of counterfeit detector pens by now. What happens when one slips through the cracks though? We don’t normally prosecute the cashier who accepted the counterfeit bill, do we? No. Even in the most extreme cases that employee is usually reprimanded or written up and they return to work immediately.

I was recently made aware of a counterfeit $20 bill that was taken at one of my stores. No biggie, right? However, it is routine to review the footage to try to determine where the bill came from so I did just that. Turns out that the cashier that accepted the bill was one that I have had my eye on for some time. This prompted me to probe deeper into the incident. I found that the bill had been passed to the cashier by someone known to be an associate of hers. She never used the counterfeit detector pen or even held the bill to the light to check for the magnetic strip. This alone only proved negligence, not internal theft.

The negligence, however, gave me a reason to talk to her. In the subsequent interview the cashier admitted to knowingly accepting the counterfeit bill. She believed that since she did not manufacture or pass the bill that she was not guilty of a crime. The authorities saw it differently and she is now in a jail cell awaiting prosecution. Be aware, crooks are going to new extremes to commit crimes these days and they may use some of your less intelligent employees to help them do so. Make no mistake, knowingly accepting a counterfeit bill is a form of internal theft.

For more information about employee theft investigation or employee theft or corporate fraud investigator or corporate fraud investigation contact us at Internal Theft or call 1.770.426.0547 – Atlanta Georgia

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The Growing Popularity of Employee Theft – Atlanta Georgia

February 28, 2011 by Staff Editor Leave a Comment

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.

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Employee Theft: Big Business – Atlanta Georgia

February 24, 2011 by Staff Editor Leave a Comment

When I first started in this industry I always looked at employee theft as the manifestation of greed or desperation, however recently I have noticed that it is becoming big business.

We all know that there is no honor among thieves, but apparently there is no honor among retailers either. One of my stores is located in a strip mall. 2 stores down is a large beauty supply store. One of the cashiers at my store was apprehended for employee theft trying to sneak a backpack full of high-end shampoos, perfumes, etc. out of the store without paying. During the interview she began singing like a canary. (I sincerely love these kinds of people, by the way) It appears the owner of the beauty supply store was happily paying anyone who stole from us. This allowed him to pay the thief and still sell the merchandise at a lower price than we were because it was all profit to him. Needless to say we went after that store owner like a pit bull on a chew toy.

In another instance I was at a local watering hole that I don’t often frequent when a young man that I recognized from one of the grocery stores I work at walked in. He saw me, nodded nervously and walked out quickly. The bartender proceeded to tell me that he and a couple of his buddies come in about 2 or 3 times a week selling large quantities of meat and seafood at discount prices. Of course I looked into it and of course they were guilty. The 3 men, 2 of which worked in the meat department were sneaking the product out of the store at night and selling it on the street to whoever was willing to pay their low prices because again, it was all profit to them. Be aware, employee theft has graduated from the minors and is becoming a major league business.

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

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Snowballing Employee Theft – Atlanta Georgia

February 22, 2011 by Staff Editor Leave a Comment

The reason employee theft is so dangerous to a company is because of its’ snowballing effect. Think about it, if you saw the same customer come into the store everyday and hang out in the same department you’d become instantly suspicious of them, right? Well, that’s exactly what your average employee does, however we assume that they’re there to simply do a job so we think nothing else of it. The truth is their position gives them unquestioned regular access to both your money and your merchandise. In essence, your business is in their hands.

Employee theft is like a drug. The first time an employee decides to take from the company they’re usually scared and apprehensive. They’re shaking like a leaf; beads of sweat form on their brow and they’ll probably talk themselves out of their first few attempts. After the first time though it becomes easier and easier to conceal merchandise or dip into the register. Before you know it that same individual who looked like a frightened child the first time is a regular retail John Dillinger, and just like Dillinger he’ll eventually recruit a gang.

Some thieves are smart and keep their wrong-doing to themselves. Most like to brag. Once the bragging starts the snowballing will too. Other associates will begin looking for ways to get away with either cash or merchandise and now you have multiple people taking multiple things at multiple times of the day. Your employee theft is out of control! What’s the solution? Stop the snowball before it starts. When the other employees see that first individual get taken away in handcuffs all of a sudden employee theft doesn’t seem like the great idea it once did.

For more information about internal theft or employee theft investigation or corporate fraud investigation or corporate fraud investigator contact us at Employee Theft or call 1.770.426.0547 – Atlanta Georgia

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A Funny Internal Theft Story – Atlanta Georgia

February 20, 2011 by Staff Editor Leave a Comment

A funny thing happened on my way to an internal theft . A company that I worked for was seeing unusually high losses in their Electronics department. Upon reviewing the footage and seeing the type of merchandise that was frequently going missing we determined that external theft, or shoplifting, was probably not the culprit. See, most of the missing merchandise stayed locked up in a back closet of the Electronics department just so average customers wouldn’t have access to it. Therefore it became obvious that it must be an inside job.

I entered the store in the middle of the night and installed a covert camera in the back closet of the Electronics department. I figured that whoever was committing the internal theft would continue doing so and with video footage of the deed it would be incredibly easy to build a case. What I didn’t realize is that there was a lot more going on in that back closet than I had anticipated. On a quiet Sunday afternoon I received a phone call from one of my detectives who snickered uncontrollably as he asked me how to handle the situation.

It seems that a couple of Electronics associates had been using that back closet as a rendezvous spot and were currently involved in acts that would make a madam blush. I called the manager of the department and had him conveniently walk in on them. (Since the lovebirds weren’t my initial target I didn’t want to alert anyone to the presence of a covert camera). The couple was terminated for unprofessional conduct and time theft and about a week later the actual thief was caught red handed with over $500 worth of MP3 players stuck down his pants. 3 for the price of 1 is always a good deal, especially when you’re talking about internal theft .

For more information about employee theft or employee theft investigation or corporate fraud investigation or corporate fraud investigator contact us at Internal Theft or call 1.770.426.0547 – Atlanta Georgia

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Whether donuts, dollars, or diamonds, employee theft causes shrink – Atlanta Georgia

February 18, 2011 by Staff Editor Leave a Comment

I was involved in investigating an employee theft in which the employee was stealing donuts on her break. Was it worth the time to investigate? Yes, when you consider that this small theft might have led to her stealing more merchandise.

Conducting this employee theft investigation right away, at the first sign of loss, was my way of being proactive and stopping a thief before her confidence in her abilities to steal grew. And usually when you discover a loss that is caused by an employee, there have been more instances of theft prior to the one you discovered.

Internal theft can happen at any business, at any time, for any amount. Most employees who steal go for a little larger gain than a donut, and this can negatively impact a business’s bottom line. Employees, whom you hope you can trust, can account for thousands of dollars of loss for your business if you do not react to your suspicions that internal theft may be occurring.

Some business owners mistakenly believe that if they prevent shoplifting in their business then they have prevented shrink from stolen merchandise. But employee theft can add up more quickly and cost you more than the average shoplifter.

Do you have inventory that cannot be located? Is there merchandise that was recently received that has disappeared, but was not sold? Is there merchandise that is considered high theft, such as electronics, that is unaccounted for? Figure out when these losses are occurring and determine which employees are in your business at that time. You may quickly realize who is responsible for the loss you are experiencing.

Whether it is donuts or diamonds you are losing from your business, you can stop the theft and recoup some of your loss by being aware of employee theft and its contribution to your shrink.

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

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