Employee Theft Prevention Considerations

In our last post, we discussed the severity of employee theft. As no industry or size of business is immune to these threats, it’s important to ensure you take the right precautions to prevent theft. Whether you run a small retail boutique, an IT firm, or anything in between, here is how to secure your business. As we mentioned before, an Indianapolis CPP is your first line of defense in instances of employee crime.

Keep your eyes on the gatekeeper.

High-ranking employees can conduct fraudulent schemes more easily than someone lower on the totem pole. As managers and executives have more access and control of funds, these schemes can go on for months or years without being detected. Establish a set of checks and balances in your management system to ensure no one person has complete control over your finances, purchase orders, accounting, etc.

Conduct background checks.

Granted, this will only turn up convictions of any potential employees. If they have yet to be caught, this background check won’t give you the warning you need. Therefore, ask for references from previous employers and cross reference them before hiring.

Put it out in the open.

Many companies recognize that trust goes both ways, and they are afraid that if they talk about embezzlement they will lose their employees’ trust. There may also be concern that they will put ideas in people’s heads. The truth of the matter is, people who steal from their employers are looking for organizations with an attitude of blind trust, and honest people won’t turn into criminals because the subject comes up, explains Law 360. It might also be wise to encourage employees to be forthcoming about anything suspicious they witness.

Conduct audits.

Letting your employees know that audit procedures are regularly conducted can deter them from stealing. Focus your auditing efforts on embezzlement, lost product, and missing money. When this is done regularly, theft can be easily pinpointed.

About Walker & Associates Insurance

If you’re not sure if your insurance is sufficient, it’s smart business to have your risks evaluated by professionals you can trust. Since being founded in 1960, Walker & Associates has embraced a “service is first” philosophy. Our team is focused on ensuring that each client receives individualized guidance to preserve their assets and control their expenses. Our strong relationships with international, national, and Indiana insurance companies allow us to negotiate the best coverages, terms, and pricing for our clients. Contact us at Walker & Associates Insurance, (888) 760-7292, for all of your business and personal matters.