internal theft — Page 29

Tips to Prevent Employee Theft – Atlanta Georgia

December 28, 2010 by Staff Editor Leave a Comment

One of the biggest threats to the success of any small business is employee theft . Small businesses rarely have the resources to devote to preventing theft and therefore suffer disproportionately when it happens to them. Luckily, there are a few tips that any small business can follow which don’t cost any money but can end up saving a company a great deal in the long run. The first thing you want to do is to create a positive work environment. This encourages employees to follow established policies and procedures, and act in the best interests of the organization. Written job descriptions, clear organizational structure, comprehensive policies and procedures and employee recognition programs will all help reduce the likelihood of employee theft .

Next, implement internal controls; these can ensure the effectiveness of operations, compliance with laws and regulations, safeguarding of assets, and accurate financial reporting. Separate the duties; no employee should be responsible for both recording and processing a transaction. It simply gives one individual too much power. Access to physical and financial assets and information, as well as accounting systems, should be restricted to authorized employees only. Develop policies to determine how financial transactions are initiated, authorized, recorded, and reviewed. These internal controls will reduce opportunity for employee theft.

Lastly, take the extra steps necessary to ensure that you’re hiring honest people. Sure, the best of us can always be fooled by a good con man, but by simply making potential employees submit to a pre employment background screening you can greatly reduce your chances of working with that con man in the first place. Check their criminal history for crimes involving violence, theft or fraud; their civil history for any lawsuits, collections or restraining orders, and their employment verification to ensure that they’re qualified to do the job you’re hiring them to do. Follow these simple tips and you’ll make great strides to preventing employee theft .

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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Battling Internal Theft – Atlanta Georgia

December 24, 2010 by Staff Editor Leave a Comment

In the never-ending battle against internal theft we must remain proactive and vigilant in our attempts to prevent and/ or detect it. There are several easy programs you can set up within your organization that will help you send out a message that you are aware of internal theft and are ready and willing to prosecute it whenever it is identified. First of all, every company should provide a confidential reporting system for employees, vendors, and customers to anonymously report any violations of policies and procedures. Promote an environment in which employees feel they have a stake in the company. This way they’ll feel as if they’re doing themselves a service as well as the company rather than feeling that they’re simply “snitching”.

In your attempts to combat internal theft it is also vital that you conduct scheduled, and unscheduled, audits. You should, of course, maintain your regular assessments, but random, unannounced financial audits and fraud assessments can help identify new vulnerabilities in your processes, and measure the effectiveness of your controls. It also serves as a warning to let employees know that fraud prevention is a high priority for the company and that someone is always watching.

If your audits or controls discover a discrepancy then you must thoroughly investigate every case. Don’t simply assume you know what happened. A thorough and prompt investigation will give you the facts you need to make informed decisions and reduce losses. Finally, you and your management staff must lead by example. A cavalier attitude toward rules and regulations by management will soon be reflected in the attitude of employees. Every employee, regardless of position, should be held accountable for their actions. Follow these suggestions and it will take you a long way towards winning the battle against internal theft .

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

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Keys to Corporate Fraud Investigation – Atlanta Georgia

December 22, 2010 by Staff Editor Leave a Comment

In today’s complicated business climate it is important for all business owners and managers to familiarize themselves with the proper way to conduct a corporate fraud investigation. First, the company should have a corporate investigative policy drawn up. The purpose of this is to give everyone an idea of what to do when fraud is suspected, how those allegations are to be evaluated and when and where to start an investigation. This helps eliminate the possibility of someone claiming to have been singled out in the investigation and brings uniformity to the process.

The next step in a corporate fraud investigation is to form your investigative team. These are the people who will actually sift through the evidence and conduct the necessary interviews, etc. A properly managed fraud investigation is critical to the successful resolution of a fraud case; therefore these people must be organized and efficient. Included in their responsibilities during a corporate fraud investigation is document management procedures and supervision of staff and consultants. It is important to be able to quickly locate critical documents, and ensuring that all necessary issues are examined.

Every corporate fraud investigation is unique, since each fraud has its own set of facts and details. The purpose of the investigation should be to determine whether or not fraudulent activity occurred, who committed the act, and how much was lost to the fraud. Evidence of the findings must be gathered discreetly and presented to those who need to know. From there they can make the determination whether to terminate the individual, seek restitution or simply prosecute the crime to the fullest extent of the law. A corporate fraud investigation must always be handled professionally and fairly.

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

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Employee Theft Investigation – Atlanta Georgia

December 20, 2010 by Staff Editor Leave a Comment

Not every part of the employee theft investigation is going to be filled with edge-of-your-seat excitement. Parts of it can be truly tedious, but extremely necessary in order to build a case against an employee that you believe to be involved in some sort of wrong-doing. A short time ago one of my detectives came to me information on a cashier. An ex-employee had come into the store and apparently waited for the cashier’s line to come open. The ex-employee had several items tucked underneath her shopping cart; a fact that the cashier obviously saw but made no mention of. She allowed the ex-employee to pay for a few items then exit without paying for the items under the cart.

Of course my detective approached the ex-employee before she exited and recovered the merchandise, but that’s when the employee theft investigation began. It appeared to me to be a clear case of sweethearting, but I needed to be sure. Sweethearting is defined as “the granting of special favors or privileges, especially to friends or family; in retail, the giving of unauthorized discounts or the abetting of shoplifting or other theft”. So the burden of proof was on me to prove collusion; that the cashier was aware of the hidden merchandise and allowed the ex-employee to take the merchandise.

I spent countless hours staring at two computer screens. One was a CCTV shot which was focused clearly on the cashier and could see everything piece of merchandise she handled. The other was on a duplicate screen of her cash register; this allowed me to see exactly what she was actually ringing in. Almost 2 weeks past before the ex-employee came back in, but when she did she went directly to the cashier in question. This time, probably spooked from their last close call, they didn’t bother with the bottom of the basket trick. The cashier simply took all the merchandise, pretended to swipe several pieces and just place them into the bag. Upon exiting the ex-employee was apprehended and subsequently arrested. The cashier was arrested and terminated. It was a long and un-exciting battle but in the end a successful employee theft investigation .

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

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Embezzlement: The Corporate Fraud Investigation – Atlanta Georgia

December 17, 2010 by Staff Editor Leave a Comment

Now, most of us hear the word embezzlement or the phrase corporate fraud investigation and instantly think big business. Large publicly traded companies such as Enron, Coke or AT&T come to mind. The truth is that these “big” words describe a simple and far too common act of employee dishonesty. Corporate fraud is defined as “a crime committed by a person of respectability and high social status in the course of his occupation”. In other words it’s anyone who uses their job, position or standing in order to commit a crime. Embezzlement is defined as “the act of dishonestly appropriating or secreting assets by one or more individuals to whom such assets have been entrusted”, sounds like a simple case of employee theft to me.

Embezzlement is often performed in a manner that is premeditated, systematic and methodical, with the conscious intent to conceal the activities from coworkers or superiors, usually because it is being done without their knowledge or consent. Often it involves the trusted person embezzling only a small proportion of money at a time, in an attempt to minimize the risk of detection. If done properly, and by ‘properly’ I mean underhanded and sneaky enough, embezzlement can continue for years, or even decades, without detection. This is why corporate fraud and employee theft in general can be so dangerous to a company.

So, why the big word ‘embezzlement’? Why not just call it stealing? Well, because they’re 2 distinct differences in the two. Embezzlement requires conversion, or a misappropriation of funds. Stealing is straight-forward theft by someone who had no business with the money or property.

Embezzlement is performed by someone who had the right and necessity to handle the money or property but simply decided to use those funds for their own personal gain. This and other corporate fraud crimes can be difficult to understand, that’s why I would advise consulting a lawyer or other experts in the field.

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

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The Internal Theft Interrogation Process – Atlanta Georgia

December 15, 2010 by Staff Editor Leave a Comment

Depending on which source you decide to go by internal theft can be responsible for up to 75% of all retail losses. With that type of money at stake it’s only natural to want to grab a suspect by the collar and shake a confession out of him/ her. However, for obvious reasons, this is not the way we do business. A proper interrogation should include a mix of technology (i.e. transaction reports, video surveillance footage) and proven, professional interrogation techniques used to solicit a confession.

Let’s say you have an employee that has been ringing multiple returns without using the original purchase information – an obvious red flag. Gather your reports on all such transactions then pull up the corresponding video footage of these transactions. Once you’ve found proof of wrong-doing, go back and investigate their other transactions. Everyone will tell you that it’s their first time, but that is almost always a lie. Once you’ve gathered your evidence, call the individual in for an interview. No water boarding or electro-shock torture necessary, an internal theft interrogation should always be handled calmly and professionally.

Give the suspect several examples of internal theft , including refund fraud. Then explain all the different loss prevention methods you have in place to combat criminal activity. Explain that you’re there to help them and you want to hear their side of the story. Personally I’m not a fan of showing the suspect the footage of them engaging in the theft. However, I do like to explain what I saw in the footage in extreme detail. This generally leaves no doubt in the suspects head that they’ve been caught. It’s usually around this point that the average suspect crumbles into a pile of warm goo. The confession is now imminent; from there you can get into restitution agreements to recover your losses. Every case is going to be different, however if your approach to the interrogation process is solid you will get results and reduce the internal theft within your organization.

For more information about employee theft investigation or employee theft 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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Various Types of White Collar Crime – Atlanta Georgia

December 13, 2010 by Staff Editor Leave a Comment

The term “ white collar crime ” was coined in 1949 by Edwin Sutherland. It is defined as: “a crime committed by a person of respectability and high social status in the course of his occupation”. However, in today’s business climate there are so many different kinds of white collar crime it can be difficult to understand what falls under that heading. Therefore, I’ve compiled a short list of examples and their definitions.

Blackmail: A demand for money or services under threat to do bodily harm, to injure property, to accuse of a crime, or to expose secrets.

Bribery: When money, goods, services, information or anything else of value is offered with intent to influence the actions, opinions, or decisions of the taker.

Computer fraud: Where computer hackers steal information sources contained on computers.

Embezz1ement: When a person who has been entrusted with money or property appropriates it for his or her own use and benefit.

Extortion: Occurs when one person illegally obtains property from another by actual or threatened force, fear, or violence, or under cover of official right.

Insider Trading: When a person uses inside, confidential, or advance information to trade in shares of publicly held corporations.

Kickback: When a person who sells an item pays back a portion of the purchase price to the buyer.

Money Laundering: The investment or transfer of money from racketeering, drug transactions or other embezzlement schemes so that it appears that its original source is legitimate.

Racketeering: The operation of an illegal business for personal profit.

Tax Evasion: When a person commits fraud in filing or paying taxes.

There are several other types of white collar crime , these are just a few examples and definitions that we should all become familiar with.

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

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Employee Theft: The Importance of a Confession – Atlanta Georgia

December 13, 2010 by Staff Editor Leave a Comment

There comes a point in every recognized case of employee theft where you, the investigator, know that you’ve got the suspect. Whether it’s clear video footage of the individual slipping a large wad of money into the pocket of their khaki’s or simply multiple transaction reports all pointing to obvious wrong-doing by the suspect, you’ve got them. Now what? Well, now the company is still out of money; now you have a dishonest employee in your midst that you need to get rid of with as little fuss as possible. The best way to do that is by eliciting an admission of guilt or confession from the subject.

The last thing you want to do is have more time and money going to a lengthy court case. That is exactly what can happen if the subject decides to fight the case or claim wrongful termination. An admission of guilt is a good way to avoid all of that. Additionally it’s the first step to recovering the moneys lost by the company as a result of the individuals’ employee theft activity. A monetary recovery agreement should accompany all admissions of guilt. The company will then go after the employee for civil recovery and if they deem it necessary they will call in the police and prosecute the crime.

Employee theft is the highest cause of shrink in any retail company. Therefore if you want to combat it properly you need to follow through on all investigations. Obtain the necessary proof of wrong-doing by using both technological means and a solid interrogation technique. Finally, finish with getting a confession. Make the subject believe that you’re there to help them and it is in their best interest to simply “come clean” and then you can all move forward. Sure, it’s possible that they’ll be moving forward to a jail cell but that’s the price they pay for employee theft .

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

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The Corporate Fraud Investigator and the Ponzi Scheme – Atlanta Georgia

December 9, 2010 by Staff Editor Leave a Comment

As a corporate fraud investigator you may be called upon to investigate any number of criminal and company violations. If you’re like me, or most other law-abiding citizens, most of the tactics and schemes used by these white collar criminals are as foreign to you as Chinese sign language. One such device is the Ponzi scheme; it resurfaced in popularity after it was expertly used by Bernie Madoff, the former stock broker and investment advisor who bilked his clients out of $18 billion and nearly $65 billion in gains.

Every corporate fraud investigator should be familiar with this scheme and how it works. A Ponzi scheme is a fraudulent investment opportunity that pays returns to separate investors from their own money or money paid by other investors, rather than from any actual profit earned. In other words, you invest your money with me believing that I’m investing in a company called Wally’s Widgets. At year’s end you see a sizeable return on your investment and believe that Wally’s Widgets is a great company. In actuality the money you received was from subsequent investors, minus my sizeable fee of course. The problem is that eventually I will run out of investors and the scheme will collapse on itself leaving my investors with a shell company (or companies) and no money.

The term comes from a Charles Ponzi who became known in the early 1920’s for using this scheme. He got a great number of people to invest in his business proposition but soon found himself using their money to pay off earlier investors and to support his own lifestyle. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. This is just one more thing in a long list that a corporate fraud investigator needs to be aware of.

For more information about internal theft , white collar crime , employee theft or employee theft investigation contact us at corporate fraud investigator or call 1.770.426.0547 Kennesaw Marietta Atlanta Georgia

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Refunds and Internal Theft

December 8, 2010 by Staff Editor Leave a Comment

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

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