WHAT TO LOOK FOR

Internal theft in the workplace can occur in the following:

straightforward theft of goods and money;
under-charging customer accomplices;
adjusting delivery dockets;
under-ringing purchases at the cash register;
fiddling the shrinkage records;
deliberately damaging goods to buy at staff discount;
using company time and facilities for personal projects;
increasing creditors' invoices and keeping the difference;
replacing perfect items with seconds in the warehouse or store;
adding a last-minute item to the receipt but not ringing it up;
picking up receipts for later inclusion in the register as 'voids' or 'refunds';
palming a forgetful customer's credit card;
fraudulent refunding;

Tips to Reduce Opportunities for Internal Theft

Perform systematic background screening of job applicants. Police clearance checks can give you a good indication of the person's honesty.
Implement an employment contract form, which clearly outlines the employer's rights to restrict employee activities, including the right to search personal bags and parcels as they leave the premises.
Ensure all new employees undertake a workplace orientation program that identifies all duties, responsibilities and procedures. In the event of employee malpractice it may prove difficult to dismiss the employee unless you can prove that the employee was aware of the required procedures.
Never have fewer than two people close up at night.
Ensure all keys distributed to employees are engraved with the words "Do Not Duplicate."
Watch for warning signs - employees who:
- Are living beyond their means
- Habitually violate company policies
- Have a substance abuse problem
- Are chronic liars
- Seem immature or troubled
- May have cause to feel wronged
Never rule anyone out - anyone could be a thief.
Install a closed-circuit television system (CCTV). It allows you to monitor employees and serves as a very strong deterrent when employees know one is in place.
Don't allow employees to write up, ring up or wrap purchases for themselves or relatives.
Provide employees with lockers or other secure area for employee handbags, purchases, coats and other belongings which should be prohibited on the sales floor.
Require at least two employees to open and close the store, simultaneously.
Prohibit employees from trying on merchandise without the knowledge of a manager or other supervisor.
Never allow employees to work with an open cash drawer. They must close the register drawer before ringing the next sale.
Limit the number of "NO SALE" rings by defining under what special conditions they will be permitted.
Prohibit cashiers from taking a reading on their cash register. If register readings cannot be done by a supervisor, require cashiers to count their cash, enter the amount on the register and place the cash in a locked deposit bag before taking a reading.
Do not allow register transaction numbers to be cleared by anyone at the end of the day. They should continue ad infinitum to ensure that the register tape was not removed from the register.
Whenever employees receive stock deliveries, require them to sign the delivery docket to verify that all goods were received.
Require employees to keep the receipt for merchandise they consume in the store during that day, for possible verification by the manager.
Tell employees what will happen if anyone is caught stealing, not what can happen, but what will happen.

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