Our Former Federal Agents Help Companies Investigate All Types of Employee Theft
Employee theft is an omnipresent concern for businesses in all industries. As far back as 1979, federal estimates put the rate of employee theft as high as 80 percent, and the U.S. Department of Commerce attributed approximately 30 percent of all business failures to “dishonest acts of employees.” Today, not much has changed. Several sources put the rate of employee theft in this same range, and businesses of all sizes can (and frequently do) find themselves in need of employee theft investigation services.
At Corporate Investigation Consulting, conducting internal investigations is our specialty. This includes conducting investigations into all types of employee theft. If you are concerned that one (or more) of your company’s employees have stolen company assets or engaged in any other form of theft or fraud, our former federal agents can gather the intelligence you need to make informed decisions, impose appropriate discipline, and take legal action if warranted.
Types of Employee Theft Investigations We Handle
While employee theft predominantly involved cash and inventory theft 40 years ago, the world is much different today. These are still very real concerns for many businesses, but they are no longer the primary concerns for most companies. Like most other aspects of modern commerce, employee theft is increasingly becoming an online endeavor. Employees are using sophisticated (or not-so-sophisticated) methods to divert their employers’ funds or steal sensitive data, and in doing so they are causing their employers significant financial—and in some cases reputational—harm.
We handle all types of employee theft investigations on behalf of companies nationwide. Our corporate investigators work with companies on the ground and track digital transactions around the world. Some examples of the types of employee theft investigations we conduct for our clients include:
Equipment and Supplies Theft
Theft of company equipment and supplies is many individuals’ first foray into unlawfully taking advantage of the access they have as employees. If your company’s employees are stealing supplies, stealing equipment, or using equipment for unauthorized personal purposes (or competing business purposes), we can investigate and collect the evidence you need to take appropriate responsive action.
Merchandise and Inventory Theft
Merchandise and inventory theft are significant sources of financial loss for many companies as well. In some cases, employees will try to cover up their merchandise and inventory theft by altering purchasing records or creating fake customer accounts. In others, they will make the (flawed) assumption that no one will notice or care if a few items go missing. But, merchandise and inventory theft can cost companies millions of dollars a year—and these are losses that companies can (and should) prevent through investigation and enforcement.
Cash Theft
For retail businesses that deal in cash, cash theft is also a significant concern. Misreporting sales, claiming customer theft, and falsely reporting customer refunds are just a few examples of ways employees may try to get away with stealing cash from their employers. While cash theft can be more difficult than some other types of theft to track, our former federal agents have the knowledge, experience, and resources required to investigate these cases effectively.
Embezzlement
Embezzlement is a specific type of employee theft that involves taking advantage of an employee’s position of trust within the company. While some cases of embezzlement involve new employees, a surprising number of embezzlement cases involve individuals in finance and other departments who have been with their employers for years, if not decades. We have significant experience handling embezzlement cases not only as corporate investigators, but previously as federal agents with the Federal Bureau of Investigation (FBI) and other agencies as well.
Financial Fraud
Along with embezzlement, employees can commit theft through various other forms of financial fraud as well. This includes setting up hidden accounts, diverting corporate funds to private accounts, splitting payments, establishing themselves as vendors, payroll fraud, and various other illicit activities. We rely on our forensic accounting capabilities to help our clients uncover and address their employees’ theft in these cases.
Time Theft
Time theft is another common form of employee theft that costs many employers millions of dollars per year. Common forms of time theft include misrepresenting employees’ hours worked, having coworkers “punch in” for employees who are not present, taking extended breaks, and performing personal tasks on company time. Within companies, employees can develop a culture of time theft, and this form of theft can become a pervasive issue that requires a broad-scale investigation and strategically coordinated response.
Data Theft
Employee data theft has quietly become one of the greatest risks to many companies. This includes theft of customers’ and patients’ personal, financial, and health information as well as theft of companies’ proprietary data and intellectual property. Instances of data theft require a prompt response, as limiting further dissemination (or sale) of the stolen data can be crucial for mitigating the costs to the company.
Employee Theft Investigations: Our Process
Like all types of corporate investigations, employee theft investigations are most effective (and often only effective) when conducted in an organized, structured, and strategic manner. With this in mind, our process for conducting employee theft investigations involves:
- Preserving Critical Evidence – Oftentimes, it will be necessary to preserve critical evidence before initiating the investigative process. This can be essential, for example, if there is a risk that the employee (or employees) involved will attempt to destroy or erase files to cover up their theft.
- Establishing the Investigation Team – We work closely with our clients to carefully select the members of each investigation team. Our former federal agents will work closely with the appropriate personnel from your company to identify all pertinent sources of information.
- Collecting Data – Our investigators will work quickly to collect the data we need to examine the theft at issue. The specific data we need will depend on the nature of the theft, its timing and duration, and various other factors.
- Conducting Forensics – As warranted, we also conduct forensic investigations to examine our clients’ inventories, equipment assets, and books and records. We also tailor our forensic investigation to the nature of the theft at issue.
- Conducting Interviews – In many cases, investigating employee theft will require employee interviews. This may or may not include interviewing the employee (or employees) suspected of theft.
- Examining the Evidence in Real-Time – As we work through the investigative process, we examine the evidence in real-time. We keep our clients fully informed so that they can make critical decisions as soon as possible.
- Working with Our Client – Our former federal agents work alongside our clients’ executives and key stakeholders throughout our employee theft investigations. While some consulting firms draft an investigation report and then leave it up to the company to decide what to do next, we work with our clients as partners to help them make the right decisions.
FAQs: Investigating and Recovering Losses from Employee Theft
Should You Report Employee Theft to the Police (or the FBI)?
In some cases, it will make sense to report employee theft to the police (or the FBI). But, even if it makes sense to get law enforcement authorities involved, it will still be important to conduct an independent internal corporate investigation in order to protect your company’s interests and reputation.
Can You Fire an Employee Who Stole from Your Company?
Termination will be an appropriate form of discipline for employee theft in many cases. But, before terminating their employees, it is imperative that companies have a clear and well-documented understanding of the employee’s misconduct. This means conducting a comprehensive internal investigation.
How Do You Conduct an Employee Theft Investigation?
Given the various steps and the sensitivity of the issues involved, companies generally should not try to handle employee theft investigations on their own. Instead, companies should engage an outside consulting firm with former federal agents who have experience efficiently uncovering all forms of employee theft and fraud. Not only can oversights during an investigation lead to inaccurate conclusions, but these inaccurate conclusions can lead to unjustified discipline and other ill-advised corporate decisions as well.
How Do You Interview an Employee Suspected of Theft?
Interviewing an employee who is suspected of theft requires a delicate, strategic, and circumstance-specific approach. While these interviews can be highly effective when conducted correctly, they can also frustrate employee theft investigations if mistakes are made. When we investigate cases of suspected employee theft for our clients, we help them make informed decisions about whether to interview the employees involved, and then we rely on our federal law enforcement experience to conduct productive interviews.
What is the First Step for Conducting an Employee Theft Investigation?
The first step for conducting an employee theft investigation is to engage an outside corporate investigations firm with the requisite capabilities. When you contact Corporate Investigation Consulting, one of our former federal agents will walk you through everything you need to know. If you decide to move forward, we can initiate your company’s investigation immediately, and we will work closely with you at all subsequent stages of the process.
Contact the Former Federal Agents at Corporate Investigation Consulting
If your company needs to conduct an employee theft investigation, we encourage you to contact us promptly for more information. Call 866-352-9324 or contact us online for a confidential consultation.