Are Your Employees Stealing From You? HTML version

Top 10 Ways Employees Steal From Their Employers
Method 1- Help Yourself!
Many times security and controls are so poor, employees simply walk out the door
with your cash, inventory, or other assets. Ignoring fraud or denying it can happen
at your company is foolish and is inviting loss.
Number one, establish physical access controls. Segregating and restricting access
to high value inventory should be considered. If you have high value inventory,
especially small items like jewelry, you should physically segregate it and lock it up.
You should establish physical control and limit employee access to a small number
of employees. Ideally you should set up the control so all employee access is
through a card reader that logs time, place, and employees in and out. All inventory
removed should be logged with time, purpose, requisition and job/order number and
requisitioning employee. Limiting access to inventory will reduce loss potential, both
in terms of theft occurrence and severity.
Is your facility protected with card keys? This technology is relatively cheap and can
tell you exactly who went where and when. If all employees do not need access to
all areas of your facility, the system can be set up on a need to access basis. Can
you control regular building egress so that employees will all have to leave at one
exit which can be monitored, as opposed to employees “going out the back door?”
By the way, a favorite trick of dishonest employees is to take inventory out the back
door and put it in the dumpster for retrieval after hours. To foil this, it doesn’t take
much effort to simply lock the dumpster at the end of every day.
Do you take a physical inventory annually? Large inventory shrink may be a sign of
employee theft. Unexplained empty boxes in the warehouses?
Periodic inventory cycle counts may also help uncover problems. Cycle counts are
simply counting a portion of the inventory on a rolling basis. Don’t publicize a
schedule in advance but conduct the counts regularly and try to count it all at least
once a year.
When was the last time you did a fixed asset inventory? Do you know what you
currently have? Have the fixed assets been tagged or otherwise identified as