What is Employee Theft?

Employee theft is any stealing, use, or misuse of an employer’s assets without permission. It encompasses more than just cash, targeting a variety of assets including money, information, time, merchandise, and supplies.

Common Methods of Employee Theft

1) Skimming

Skimming occurs when employees accept cash payments and pocket the funds without recording the transactions in the point-of-sale system.

2) Larceny

Larceny involves the theft of personal property, such as money, supplies, or merchandise that belongs to the company.

3) Embezzlement

Employees with access to cash or supplies may misappropriate these assets during transactions, engaging in embezzlement.

4) Expense Reimbursement Fraud

This method involves falsifying charges on expense reports and seeking reimbursement for those expenses.

5) Proprietary Information Theft

This entails stealing crucial business information like customer lists, software, procedures, and trade secrets.

6) Check Tampering

Check tampering occurs when employees forge signatures or alter payee information on company checks to pay themselves.

7) Billing and Payroll Theft

Employees may create fake vendor accounts or manipulate payroll figures to funnel extra funds into their own accounts.

How to Prevent Employee Theft

1) Shore Up Your Pre-Employment Screening Process

Conduct thorough pre-employment screenings, including credit history checks for positions involving money or asset handling.

2) Conduct Background Checks

Conduct background checks on potential employees with local, state, and federal law enforcement agencies to ensure trustworthiness.

3) Monitor Key Financial Records

Engage an external accountant to review key financial records periodically to detect any signs of employee theft early.

4) Establish a Code of Ethics

Maintain and enforce a clear code of ethics within your employee handbook, setting a strong ethical example yourself.

5) Set Up Checks and Balances

Implement a system where sensitive transactions require managerial approval, and ensure employees work in pairs when handling critical tasks.

Minimize Employee Theft with the Right Tools

Sling by Toast offers robust workforce management tools to help reduce employee theft effectively. These tools streamline scheduling, time tracking, labor forecasting, and real-time management, enabling you to concentrate on essential business operations.

Try Sling for free today and see how it can optimize workforce management and help prevent employee theft.