employee theft Archives - All in Investigations

Mysterious Inventory Shrinkage

“SHRINKAGE” is the Industry Term to Describe Theft or the Mysterious Disappearance of Assets from a Company is the industry term to describe theft or the mysterious disappearance of assets from a company. Based on the average of various knowledgeable authorities, 4.2% of the gross revenue of a company is stolen by employees. For example, if a companies’ annual gross revenue is one million dollars then employees are stealing $42,000. Or, if an American made automobile costs $20,000 to manufacture than 840 bucks is added to the price to cover employee theft. Theft by employees takes many forms: embezzlement by employee, outright stealing of inventory, raw materials, scrap, time-card cheating, phony disability claims or worker’s compensation claims, phony FMLA excuses, embezzlement of cash or receivables, [...]

Theft in the Workplace Belongs in Professional Hands

Theft in the workplace can take many forms and every department is vulnerable. Like many company owners, Ed felt the crunch of the economy. He tried not to get to the point of lay-offs. But eventually, that choice was inevitable. Some guys in production lost their jobs, others lost hours. In fact, within a few months, Ed had to reduce employees and hours in every single department. The morale of those left behind went from low to downright vicious. Ed was doing the best he could do. Then he started to notice that inventory was low, tools were suddenly missing and machinery in the production lines was suddenly out of commission. Ed suspected that his employees were purposefully causing problems; they were sabotaging the machines; [...]

Do You Have a Trail of Paperwork That Reveals Employee Embezzlement?

Employee embezzlement is a major problem, especially for small businesses. I recently read an article by Todd Frankel of the St. Louis Dispatch, “Wave of embezzlement cases hits St. Louis region.” Case after case spoke of employees: Getting reimbursements in “office expenses” Improperly documenting vehicle impound fees and pocketing the money Creating fraudulent invoices and making payments to dummy vendors (themselves) Skimming money by adding a fee to an invoice, then taking the money once the invoice is paid Theft by employees is increasing, according to a poll of the members of the Association of Certified Fraud Examiners. Looking at the cases, embezzlement by employee after employee shows that the theft occurs over a long period of time and is taken in small amounts. Unlike [...]

Think Computer Forensic Services if you are Concerned about Employee Theft

Employee theft can take many forms, not just stealing cash from the register or lifting product out the backdoor to an associate. In fact, in a recent article on American Express Open Forum, Barry Moltz lists several you might not have even considered, although he says they are common. Set up fake vendor accounts. Steal checks Falsify expense accounts. Buddy punching (timecards) Steal data Most of these can be precluded through strict protocol and a system of checks and balances. If you suspect employee theft, can step in and bring the truth to light. First, computer forensic examination reveals not just documentation to confirm wrongdoing, but also can identify groups of employees conspiring through email and other communications. Even if the employee deletes emails, a [...]

Investigations and Social Security Numbers

Few people think much about their social security number, other than protecting it from identity thieves. But the actual number was – in the past – very telling. conducts a lot of investigation of specific people for a wide variety of reasons: A missing person investigation An identity theft An asset search Due diligence for personal or professional reasons Insurance fraud And a social security number can be a source of leads and information. But a relatively recent change adds some new challenges – and opportunities. The first three digits of a social security number used to stand for something specific. Each state had a certain series of numbers and other groups, like railroad workers, their social security number always began with digits from 700 [...]

What Business Owners Need to Know About Theft by Employees and Employee Embezzlement

Theft by employees is rampant – just ask any business owner or CEO. And when you start talking about employee embezzlement, the impact can be catastrophic to some businesses, especially small businesses, for several reasons: Loss of assets – an employee stealing from a company can take anything from supplies and materials to money away from the company’s resources. Loss of credibility – if a large theft or employee embezzlement is uncovered and reported to the public, the perception of the company may be damaged. The “if they can’t manage their own house, how can I think they can manage mine” theory can result in loss of clients and potential clients – for a long time. Drain on future finances – Seeing a business embezzlement [...]

An Investigation Provides Answers When You Think You Have an Employee Stealing Customers

In order to protect their client list and trade secrets, many businesses formalize confidentiality and non-compete agreements with employees. Client data protection is also an element of the privacy organization strive to maintain. But sometimes employees or contractors see those agreements only as valuable as the sheet of paper they are written on and ignore the legally binding agreement. And it’s not only the people you hire, but family who work in the business, too. has had numerous investigations that revealed family members were involved in clandestine operations – sometimes. For instance, a small family business owner contacted about suspicions he had at work. He thought he had an employee stealing customers – and that employee was his nephew. Not only was he concerned about [...]

Nip Theft by Employees in the Bud

Theft by employees is a problem whether you own a business run out of an office or a retail establishment. It’s a felony and costs business – and consumers – a great deal of money every year. There are steps employers can take beginning with a thorough background check for new employees. It is not uncommon for big organizations to an HR due diligence checklist, but companies of all sizes should include a background check in their hiring process. This is especially true for key employees and those in vulnerable areas of the business. Employee embezzlement can have a debilitating impact on a small business. In fact, some businesses are not able to recover from such a loss and the subsequent cost of legal action. [...]