Employee Theft and Loss Prevention

Employees steal over a billion dollars a week from unknowing employers. Honest employees often know theft is occurring but hesitate to inform management of the problem. Most of the time, there are warning signs that theft is occurring through declining profits, unexplained inventory losses, rumors and other discrepancies. Management usually doesn’t know how to deal with the problem until they forced to face a crippling loss. There are ways to detect and prevent theft related losses within your business. You have to know what to do. We can suggest methods of limiting theft and conduct covert surveillance of employees that are under suspicion of actively committing theft.

Signs of Theft

All irregularities or deviations must be evaluated with an open mind. Inventory or product found near employee exits or dumpsters, discrepancies in invoices and shipping receipts, sensitive documents discovered in copy machines or trash, photo-copied documents used in lieu of originals have been signs of past theft and may be indications of existing dishonesty. Amazingly, employees questioned as to why they stole often rationalize their action and state the opportunity of theft presented itself through lenient policies, controls and management indifference or stupidity. Moreover, many employees cite opportunities created by management, not their financial need, as their primary impulse to steal. Another significant reason employees give for stealing is their perceived belief management was stealing so it was okay for them to also do so. This condition proves the point that, if management wants a theft free work environment, it must set the example of honesty and adherence to policies.

Some other common examples of employee rationale for theft include:

• I deserve more than they pay me, so I will supplement my income.
• Everybody does it, besides; they will write it off on their taxes or insurance.
• The company makes a ton of money and I ought to have some of it.
• The company screwed me and I got back at them.
• There is no way they can prove I committed theft.

How to Prevent Losses and Obtain Proof of Criminal Activity

Hiring a private detective will provide the company solid proof of theft. Criminal prosecution will send a message to other employees’ that theft will be prosecuted. This policy will have a definite influence on the employee who is actively stealing or contemplating theft from your company. Until management gains an accurate understanding regarding employee theft and initiates sound loss prevention measures, it will remain a major drain of profits productivity and employee morale.

Please feel free to call Charles Hess Investigations at: 410-255-4439 for a free initial consultation.