Employee Theft

Employee theft is an illegal act (i.e. stealing cash, goods, equipment, supplies, time, services, etc.) committed by a business employee against his employer. About 80% of all crime-related losses are due to employee theft. The following guidelines may reduce the risk of your business:
  • Monitor cash register activities to ensure proper operation. Do not allow employees to handle any transactions or sales to themselves, close friends, or family.
  • Monitor business activity and income patterns over time to see if income has dropped during any particular situation.
  • Use a shopping service or a trusted outside person to pose as a customer to find weaknesses in your operation.
  • Separate operations from accounting; double check all transactions.
  • Keep an accurate inventory system and have it checked regularly by someone other than the person responsible for it.
  • Keep accurate records on movements of cash and goods from the time they enter your business until they leave.
  • Establish a very clear employee discount and fringe benefit policy.
  • Limit access to valuables; use strict key control for access to business premises, store rooms, and display areas. Employees' personal belongings should be stored in a safe place with limited access, away from concealable merchandise.
  • Search trash regularly to prevent goods from being carried out with it; flatten boxes to eliminate possible hiding places for merchandise.
  • Limit the number of exits and monitor employees to make it difficult to carry merchandise out without your knowledge.
  • Lock screens over outside openings through which goods can be passed.
  • Have employees park away from the building to reduce access to personal vehicles where goods may be hidden.
  • Sign all tools and equipment in and out.
  • Reward employees who discover and report security problems.
  • Deal with dishonesty swiftly, firmly, and visibly: rules mean little if not enforced!
  • Install security cameras.