TIPS TO PROTECT YOUR BUSINESS FROM EMPLOYEE THEFT & EMBEZZLEMENT

Employee theft accounts for 43% of lost revenue for U.S. Businesses, racking up about $18 Billion in losses per year. For some, it can mean the difference between a thriving business and bankruptcy.


  • When an employer decides to terminate an employee, remember to change passwords on any accounts that allow access, via the Internet, as well as the security alarm system.
  • If you suspect employee fraud or theft, immediately deny access to the employee's computer. If neccessary, terminate the employee, when other people are around for your safety. If possible provide back pay at the same time of termination. Don't withhold wages.
  • Be leery of employees that don't use their annual time, especially if they have access to accounts. Typically they need to have access at all times, in order to cover their tracks.
  • Never allow one individual to only have access to your accounts, make sure you have access as well.
  • Conduct monthly audits on all accounts. Question suspicious transactions whether employee or unknown companies via the Internet.employeetheft1
  • Set purchase limits with employees and require your bank to have two signatures on checks, if it meets the threshold amount.
  • Reconcile your petit cash on a regular basis.
  • Receiving cash for other than physical products that don't require an inventory, such as cash insurance payments, spa services, veterinarian services, etc.; is an easy way for employee theft. Come up with a check and balance system.
  • Do you understand the payment methods and other ways your company is using and spending money?
  • Consider the use of surveillance cameras around any area where cash is stored or handled.
  • Always have separate alarm codes for employees. Employees can return after hours stealing stock from the store.
  • Occasionally compare physical inventory against shipment and sales records, conduct a computer usage audit. Watch for excessive breaks, where the employee exits the building.