How to Prevent Internal Theft at Your Business

No employer wants to believe their workers can steal from the business. But the unfortunate reality is that internal theft is widespread. 75% of employees admit to stealing from their employers at least once, according to one shocking statistic.

Within retail, internal theft costs Canadian businesses more than $1 billion every year, according to CBC.

With losses like these, businesses need to be proactive about implementing processes and systems that reduce the risk of internal theft. This blog post outlines four strategies to help prevent these crimes from occurring at your business.

1) Install high-quality security cameras

Security cameras are a powerful deterrent, making employees think twice before committing a crime. The presence of cameras alone helps to prevent internal theft. But if a crime is committed, you’ll have video evidence to take action.

The key to installing security cameras is placing them in enough areas that there are no “blind spots” at your business. In retail environments, for example, you’ll want to install the cameras wherever you have merchandise, whether it’s the main floor or the back office and inventory rooms. Be sure also to capture delivery/receiving areas, which are common areas for internal theft.

2) Use background checks during the hiring process

When hiring new employees, including background checks as part of the application process. Background checks can alert you to previous criminal activity that you wouldn’t otherwise know about. While not all prior offences will be grounds for dismissing a candidate, a pattern of theft is a major red flag. Conducting background checks is a quick and inexpensive way to ensure you’re hiring the best candidates.

3) Implement stronger cash-drawer procedures

Cash registers are a familiar spot for internal theft in retail environments, especially if the business has no security cameras. However, you can reduce the risk of theft by implementing stricter procedures for how employees handle their cash drawers.

One effective measure is conducting cash counts at random times. Have supervisors randomly conduct a cash count during the workday to check for discrepancies. This procedure will help to deter employees from “pilfering the till” in the first place. Additionally, each employee should have a dedicated drawer, enabling you to spot any patterns of discrepancies over time.

4) Monitor inventory & physical assets

This is especially important for retail, but it applies to nearly any type of business. If you don’t have an accurate record of your business’s products and assets, how will you know if something has gone missing?

Your employees will know if your inventory practices are lacking. They will see if it’s possible to take something without getting caught. By implementing stricter inventory monitoring, you’ll deter internal theft and have greater insight into what’s happening to your products if something goes missing.

Is your business secure?

Find out if your business is at greater risk of internal theft and other security threats. Request a no-obligation security consultation from PROTECTION PLUS.