As investigators specializing in corporate theft, we’ve seen how internal theft can devastate businesses of all sizes. Understanding the warning signs can help protect your company’s future.
INVENTORY RED FLAGS
• Recurring shortages in specific departments or shifts
• Discrepancies between physical counts and system records
• Missing high-value items
• Unusual patterns of product damage claims
• Inconsistent shipping and receiving records
BEHAVIORAL INDICATORS
• Arriving unusually early or staying late without explanation
• Insistence on handling certain tasks alone
• Resistance to procedural changes or audits
• Defensive behavior when questioned about discrepancies
• Refusing to take vacation time
• Unusual interest in security procedures or shipment schedules
FINANCIAL WARNING SIGNS
• Unexplained adjustments to accounts
• Missing or altered receipts
• Duplicate payments to vendors
• Unusual cash adjustments
• Increased void transactions
• Suspicious refund patterns
VENDOR RELATIONSHIPS
• New vendors with limited business history
• Changes in delivery patterns
• Unusual payment terms
• Missing or incomplete vendor documentation
• Vendors with post office box addresses only
LIFESTYLE CHANGES
• Sudden expensive purchases
• New vehicles or property
• Frequent expensive vacations
• Gambling habits
• Living beyond apparent means
• Sudden debt elimination
DOCUMENTATION ISSUES
• Missing or incomplete paperwork
• Altered documents
• Delayed reporting
• Inconsistent signatures
• Photocopied documents instead of originals
PREVENTION STRATEGIES
- Implement dual control procedures
- Regular audit schedules
- Rotating job duties
- Clear documentation requirements
- Security camera systems
- Anonymous reporting systems
WHAT TO DO IF YOU SUSPECT THEFT
• Document all suspicious activities
• Maintain confidentiality
• Avoid confrontation
• Secure evidence
• Contact professional investigators
• Review insurance policies
Remember: Employee theft investigations require careful handling to protect both your business interests and legal rights. Proper documentation and professional assistance are crucial for successful resolution and potential prosecution.
Contact us if you would like further information on any of the above topic areas.
Written by Currie Confidential’s Corporate Investigation Team
Last Updated: January 2025