Identifying Internal Theft in Your Business

internal theft

Internal losses can cause considerable long-term damage to a company’s profitability. When employees are able to exploit their position to steal, they may also be able to use their position to conceal it or pursue forms of theft that will be difficult to identify. By the time a company learns about employee dishonesty, the volume of a loss may be substantial.

Companies can mitigate the risk of internal loss by following policies and procedures that aim to prevent it proactively. In addition, continued monitoring can put a stop to employee dishonesty as soon as possible.

How Can You Make It Harder to Commit Theft?

Orlando commercial crime insurance providers like to see companies adopt managerial practices that minimize employees’ access to funds, goods, and supplies. Video surveillance is also an effective countermeasure.

One of the best practices to make theft difficult is requiring authorization for accessing funds or materials. Create set policies about who will have permission and when it is necessary for more than one employee to sign off on something. Without these types of controls in place, a company would create an unnecessary risk of loss.

How Much Do Preventative Measures Deter Theft Effectively?

Managerial practices that limit opportunities for internal losses can be a strong deterrent. Employees who recognize that a company closely monitors employees and audits are likely to conclude that the risk of detection is too great.

How Do You Check for Internal Theft Consistently?

Orlando commercial crime insurance providers encourage companies to audit accounts and perform an inventory of products and supplies regularly. These key regulatory measures will help you identify variances before they continue over an extended period.

Can Your Hiring Practices Make a Difference?

Even the most trustworthy employees may commit theft from their employer. In instances of prolonged theft, one of the reasons why employers did not suspect it is because they implicitly trusted their employees.

Your hiring practices can’t altogether prevent theft, but they can help assure that you will bring more trustworthy individuals onto your team. Thoroughly screening job applicants and checking references will help you make informed decisions about adding personnel.

When Should You Suspect an Employee of Theft?

Employers will generally need some substantive evidence before outright accusing an employee of theft. However, employees may exhibit some warning signs indicating that it would be prudent to pay more attention to their activities. Resisting new policies about preventing theft, requesting to change job duties, or refusing to complete certain tasks could signify some type of financial dishonesty.

A comprehensive risk management plan to address employee theft needs to start at the hiring stage and be consistent throughout your team’s employment. Preventative policies and crime insurance will enable you to protect your company against insurmountable internal loss.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.