Employee Theft

 

Employee theft can entail many activities including: workman compensation fraud, taking merchandise, stealing small sums of cash, forging or destroying receipts, shipping and billing scams, time stealing, and falsifying expense records.

It is very difficult to separate dishonest employees from honest employees.  People that commit employee theft vary in sex, age, ethnicity, economic status, and education. The only way to determine an employee is a thief is to research the history, conduct and overall behavior of all employees.  An employee’s past job history, conduct, judgment, and responsibility usually is a strong indicator for what an employer can expect from them in the future.  Pre-employment screening will assist with weeding out the bad seeds.

There are many things that employers can do to prevent employee theft.  An  positive work climate has been proven to be a large hinderance for employee theft. Proactive communications, fair employee practices and proper managment tone will help reduce employee theft. If you suspect an employee stealing from your business, do not hesitate to contact us to assist you in discovering the truth.

There are a number of approaches we can explore in employee theft investigations including covert surveillance, undercover investigators,  and employee interviews. In some cases we uncover a collaboration involving many employees.

Our view is that a company should always be willing to investigate and pursue recovery to the fullest extent. It is important to send a message that the company takes fraud seriously with a zero tolerance policy for employee theft.

Theft by a trusted employee happens in small towns and big cities, but conventional law enforcement agencies lack the time or resources to investigate.

Fact about Employee Theft

•  Did you know that 60% of inventory losses are caused by employees?
  – National Retail Federation – 2010

• U.S. retailers and small businesses lost $33 billion in revenue last year due to theft
  – National Retail Federation – 2010

• Employee theft is on the rise according to national statistics and company surveys
  – National Retail Federation – 2010

• In 2010, one in every 33 employees was apprehended for theft from their employer
  – 2010 Jack Hayes International, Inc. survey

• 75% of employees steal from work and most do so repeatedly
  – US Chamber of Commerce

• In 2010, 69,373 employees were apprehended from 23 large retail companies, down .4% from 2009– 2010 Jack Hayes International, Inc. survey

• In 2010, The average case value of employee theft was $639.99, about six times the average value of a shoplifting case. – 2010 Jack Hayes International, Inc. survey

• 30% of corporate bankruptcies result from employee theft
  – US Chamber of Commerce

• The Boston Globe and Denver Post report that “time theft” and loafing cost U.S.companies over $400 Billion a year in lost productivity