Florida, Boca Raton, Investigator, Employee, Theft, Loss
Florida Investigator, Loss Preventions Investigations.
Advice- From A Fort Lauderdale, Boca Raton Private
Investigator, Employee theft -- pilfering, larceny and embezzlement
to name a few -- comes under the umbrella of what is considered
fraud. The end result is the same: businesses suffer a loss. On
average, it takes 18 months for an employer to catch an employee who
Every year billions of dollars are lost by businesses nationwide
to employee fraud and theft and the number of incidents are rising.
If your business is small, you're especially vulnerable to
occupational fraud and less able to absorb a loss than a larger
How To Prevent Employee Thefts. The first step to
preventing employee theft is to screen job applicants thoroughly
before hiring them in the first place. Background checks should
include a check on criminal history..
Consider running a
credit check on prospective employees, as people with financial
difficulties are more prone to fraud. Read Below About Employee
Are Employees Stealing? Scroll Down
Types Of Employee Thefts. Scroll Down
Prevent, Employee Thefts. Scroll Down
Are Employees Stealing.
Be clear with
employees that your company has zero tolerance for employee theft of
any sort. This includes not only stealing, but also things such as
taking a long lunch break, using sick leave when not sick, doing
slow or sloppy work, or coming to work late or leaving early.
Write and distribute a company policy that outlines exactly what
constitutes stealing. Contact your local police department if you do
discover an incident of employee theft. .
Business owners and
senior management must themselves be role models of honesty and
integrity, or they may risk setting up a work environment that
justifies illegal and criminal activity.
Avoid at all costs
allowing the finances of a business to be handled and controlled by
a single individual. Separation of duties is critical, and no
employee should be responsible for both recording and processing a
Run irregularly scheduled surprise audits or
have a third party audit your books once a year.
all checks, purchase orders, and invoices are numbered
consecutively, and regularly check for missing documents.
a "for deposit only" stamp on all incoming checks to prevent an
employee from cashing them.
Most incidents of employee theft
are revealed by coworkers, but many still are hesitant to report
these incidents to their employers. Set up a system whereby
employees may report employee theft anonymously.
checks above a nominal amount to have two signatures. Never sign a
blank check. Sign every payroll check personally. Avoid using a
signature stamp. .
Small business owners should take the time
to review accounts payable by checking cash disbursements and
payments. A very common scheme to look out for is billing-scheme
fraud where an employee sets up fictitious "phantom" vendors.
Be alert to disgruntled or stressed employees, or those who have
indicated that they are having financial difficulties. Also look for
any unexplained significant rises in an employee's living standards.
A positive work environment has been shown to deter employee
fraud and theft. Open lines of communication, positive employee
recognition, and fair employment practices will assist in the
reduction of occupational fraud.
Personally look into
customer complaints that they have not received credit for payments.
Types Of Employee Thefts.
Primary Types Of Employee Fraud, Stealing, Thefts.
1. Asset Misappropriation - Asset
misappropriation covers stealing or "borrowing" resources for
personal use without permissions. Examples include check forging,
skimming cash from the register and using company vehicles for
personal gain. .
2. Kick Back Scheme Corruption and Bribes -
These crimes occurs when an employee inappropriately uses their
position in the organization to benefit themselves. Examples include
accepting bribes from a potential vendor or accepting kickbacks from
customers in exchange for offering unwarranted discounts. .
3. Financial Statement Fraud - Financial statement fraud involves
"the intentional misstatement or omission of material information in
the organization's financial reports." This may occur to cover up
incompetent decisions by mangers or to hide the existence of other
types of fraud or both. Examples include recording fictitious
revenues, hiding expenses or artificially inflating assets.
Occupational Crimes, Individuals may commit crime during employment
or unemployment. The two most common forms are theft and fraud.
Theft can be of varying degrees, from a pencil to furnishings to a
car. Insider trading, the trading of stock by someone with access to
publicly unavailable information, is a type of fraud.
White Collar, Blue Collar Crimes.
White-Collar Crime refers to financially motivated nonviolent crime
committed by business and government professionals. Within
criminology, it was first defined by sociologist Edwin Sutherland in
1939 as "a crime committed by a person of respectability and high
social status in the course of his occupation". Typical white-collar
crimes include fraud, bribery,
Ponzi schemes, insider trading, labor racketeering, embezzlement,
cybercrime, copyright infringement, money laundering, identity theft
Blue Collar Crimes, The types of crime committed
are a function of what is available to the potential offender. Thus,
those employed in relatively unskilled environments and living in
inner-city areas have fewer opportunities to exploit than those who
work in situations where large financial transactions occur and live
in areas where there is relative prosperity. Blue-collar crime
tends to be more obvious and thus attracts more active police
attention such as vandalism or shoplifting. In contrast,
white-collar employees can incorporate legitimate and criminal
behavior, thus making themselves less obvious when committing the
crime. Therefore, blue-collar crime will more often use physical
force, whereas in the corporate world, the identification of a
victim is less obvious and the issue of reporting is complicated by
a culture of commercial confidentiality to protect shareholder
value. It is estimated that a great deal of white-collar crime is
undetected or, if detected, it is not reported.