Internal theft can also be a problem for businesses. Here are some types of internal thefts:
- Merchandise theft - Merchandise is stolen from the store
- Cash theft - Cash is stolen directly from the register
- Free-bagging theft - A cashier bags up merchandise but fails to charge the customer
- Under-ringing theft - Unauthorized marking-down of merchandise
- Aiding shoplifters - Failing to report shoplifting or actively assisting shoplifters
- Refund theft - Creating a false refund receipt and taking the cash
- Employee discount abuse - Offering the employee discount to friends or family
Following these tips can make your business safer:
- Ensure you do frequent, thorough inventory audits
- Ensure some of those inventory checks are random and unexpected
- Have all potential employees fill out a detailed application and check references
- Ensure your accounting system has appropriate checks and balances involving more than one employee
- Watch for unexplained stock shortages
- Check trash bins
- Be concerned about employees who are reluctant to take vacations or promotions
- See if business patterns change when a certain employee is absent
- Watch for employees who are uncomfortable or defensive answering routine questions about procedures
- Involve your employees in crime prevention measures