Employee Theft

About 80 percent of all crime-related losses are due to employee theft. The following guidelines may reduce the risk to 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, storerooms, and display areas. Employees' personal belongings should be stored in a safe place with limited access, away from merchandise that can be concealed.
• 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.