For merchandise theft by employee

1. Nervous employee. You noticed that management and/or store security were tipped off by the dishonest employee himself or herself. Watch closely the employee who is nervous, that is always glancing around to see where management is located. Those of you who have children can tell by their guilty looks that they have done something wrong. When children grow up and become employees, they haven't changed. Apply the same technique with employees. When they look guilty, watch them closely, but don't be obvious.
2. Employee purchases. An employee leaves work with store items, either loose, sacked, or boxed, and cannot produce a receipt.
3. Merchandise around register. Sacked merchandise around the cash register or near exits, or loose merchandise around the cash register or near exits.
4. Shoplifter catches. The employee who takes pride in catching shoplifters, or the employee who catches most of your shoplifters, or brags about how much money he/she is saving the store by keeping a monetary tally of the amount of shoplifting catches, should make you take notice.
5. Emptying of trash. When trash is emptied within 30 minutes of lunch are quitting time, it may be a clue that stolen merchandise is carried out with the trash.
6. Auto trips. Employees who make many trips to their cars during working hours.
7. Lottery. Lottery sales running at a loss.
8. Lay-a-ways. Unidentified merchandise in lay-a-way.
9. Catalog stores. Too many orders being sent to one customer.
10. Angry employee. There are three things that must be present in an employee's life before he/she will steal: (1) NEED; (2) RATIONALIZATION; and (3) RISK-FREE OPPORTUNITY. An angry employee gives the "rationalization" to "get even" by stealing.

1. Background checks. As you have realized in many of the above cases, some of the employees hired have a previous criminal record of theft, or have a criminal record of drug possession or drug pushing. In today's hiring practices, pre-employment criminal and financial background checks on all new-hires must be considered, as well as pre-employment honest testing and drug testing.
2. New-hires. As you have discovered while reading the above theft articles, many employees start stealing during the first few days of work. Apparently, they came to work with full intent of stealing as much as they could, and as quickly as they could. Therefore, all new-hires, from entry level to management, should be monitored closely. They should never be put in a position that enables them easy access to merchandise or money (such as emptying trash, carrying money, or making bank deposits), without close controls that are monitored daily. . As you have discovered while reading the above theft articles, many employees start stealing during the first few days of work. Apparently, they came to work with full intent of stealing as much as they could, and as quickly as they could. Therefore, all new-hires, from entry level to management, should be monitored closely. They should never be put in a position that enables them easy access to merchandise or money (such as emptying trash, carrying money, or making bank deposits), without close controls that are monitored daily.
3. Temporary workers. A background check and drug test is a must when hiring through a temporary agency. Do not rely on the "agency" to do this for you.
4. Thieves know who the thieves are. In many of the case above, honest employees voluntarily reported crimes to management. It also is almost a sure bet that an employee thief knows other employee thieves in the same store. Therefore, when you catch an employee stealing, you have the potential of catching additional employee thieves — if you ask the right questions properly and legally. Professional interrogators know how to do this. Many times honest employees also know who is stealing, but are too intimidated to tell, or don't know who to tell, or don't know if they tell whether they will be protected with anonymity. Management must make it easy for honest people to expose dishonesty of every form in the workplace. One way is to offer employees a toll-free or local telephone number they can call from anywhere 24 hours a day — with a guarantee of anonymity.
5. Cash incentives for reporting internal theft. Monetary incentives for reporting theft are excellent. However, don't insult an employee with a $25 reward for exposing theft by a peer who ripped off the store thousands of dollars. Use Crime Stoppers philosophy as an example — "up to $1,000." Crime Stoppers has developed the magic number for "informants." They have discovered that "mama will tell on son" for $1,000 — but not for $999. When you pay a monetary incentive, it must be paid in cash to guarantee anonymity. And cash payment must be made through a source not associated with your company. There are companies that offer these services.
6. Employee shopping. When an employee goes on break and purchases something from the store to eat, management only must ring that sale. The employee is to keep that receipt on his/her person during the time of eating. Employees cannot ring their own sales while on or off the clock. Employees are not to shop the store while on the clock. They are to return as customers after work to shop. That "return" can be immediately after work. They are to shop as customers and be treated as customers. Management will always ring sales of the employee-customer. Finally, when employees purchase merchandise in cases, those cases are to be opened by management, who then rings the sale. It is to be checked again as it is wheeled out the door, and the contents inside compared with the sales receipt. (See below — Sections 2, 3, 7, 10 & 11 for more detailed cash control policies).
7. Receipt checkers. Front-door receipt checkers have been known to be in collusion with customers and sweetheart cashiers, allowing customers and/or employees to leave the store with merchandise not paid for. Periodically spot-check front door receipt checkers. Periodically rotate front-door receipt checkers, especially when you suspect a certain customer is in collusion with the receipt checker.
8. Cashiers with merchandise around the register. When a customer does not have enough money, requiring a void, or a customer returns merchandise for a refund, cashiers cannot keep voided and/or refunded merchandise at the checkout. They must immediately notify management before the void and/or refund transaction. Management must be present when the void/refund transaction is made. Management is to immediately transport voided and returned merchandise to the shelf. Management is to periodically check in and around the checkout for stashed merchandise, especially when a cashier is preparing to go on break, or is leaving the store at the end of the shift.
9. Employee exits. Employees are to leave work through only the front door or employee door. If the store has EAS systems stationed at customer doors, an EAS system must also be stationed at the employee door and backroom door. EAS sensors are to be removed only by cashiers on duty, and only during the sales transaction.
10. Employee purses, belt pouches, and backpacks. In some types of stores (i.e., jewelry stores, etc.), purses are to be inspected by management before the female employee leaves work. All belt-pouches are to be inspected by management before employees leave the store. Employees cannot wear backpacks or book bags to work. These must be left in their automobiles.
11. Employee who catches many shoplifters. A thief must have three requirements present simultaneously before he/she will steal — NEED, RATIONALISATION, and RISK-FREE OPPORTUNITY. An employee thief, who is keeping tally of how many dollars he/she is saving the store by catching shoplifters, is rationalizing his/her own theft, which they justify is less than what they are saving you in shoplifting catches. Therefore, an employee who catches many shoplifters must be kept a close watch on.
12. Emptying of trash. Trash bags are to be under lock and key. Only designated employees are authorized to have the key to trash bags. If the store has an outside-detached Dumpster, trash cannot be emptied at random. Management must designate when trash is emptied. An authorized person must inspect trash before it is emptied. Of course, the person inspecting the trash is never the same person who empties it. Trash must not be emptied within one hour of lunch or quitting time. In large stores, management must be notified every time trash is emptied. In small stores, trash is to be emptied only on the day shift. In 24-hour stores, trash must not be emptied by the midnight shift until the day shift arrives. Stores that are not opened at night, but have night stock crews, trash is not to be emptied until the day shift arrives. Only the day shift and evening shift is to empty trash in large stores. Spoiled perishable items at night must be stored in the cooler and only be emptied during the day shift. Within 15 minutes of lunch or quitting time, management must walk behind the store, inspecting around back doors and dumpsters and inside dumpsters for stashed merchandise. No employee is permitted to park his/her vehicle behind the store, or next to a store exit, or next to a Dumpster. All employee vehicles are to be parked in the employee parking lot in front of the store, within full view from inside the store.
13. Auto trips. Employees making many trips to their cars may be taking concealed merchandise or cash to their cars. Or they may be drug addicts going to their car for a fix. Employees should not be permitted to go to their cars except to go eat or go home. Managers should periodically walk to the employee parking lot and inspect inside employee cars, simply by looking in the windows. An employee's car with dark tinted glass, with a sun shield covering the entire front window, should be watched closely.
14. Employee lockers. Female employee's purses and male employee's wallets are to be stored in a personal locker. No belt-pouches are to be worn by employees while on the clock. All belt-pouches are to be stored in the employee personal locker.
15. Inspection of Employee lockers. Management will randomly check employee lockers. At any moment a manager can walk up to any employee and ask the employee to go with him/her to the employee's locker. The employee will open the locker in the presence of management. When an employee is singled out to open his or own locker in the presence of management, it in no way is questioning the integrity of the employee, but rather is an on-going part of store loss-prevention to maintain trustworthiness in all employees.
16. Lay-a-ways. The lay-a-way section must be secured with only one responsible person holding a key to the lay-a-ways. Lay-a-way section should be inspected periodically throughout the day for boxes or bags filled with merchandise, having no identification as to who owns the lay-a-way.
17. Playing lottery. See below — Section 5 for lottery theft prevention.
18. Catalog stores. Rotate shipping clerks. Periodically mail letters to customers or call customers to verify they ordered what was shipped, or received what they ordered.
19. Stores with delivery trucks. After delivery trucks are loaded, and before they are driven from the dock, store management must inventory items on the truck from the delivery slip, lock the truck doors, seal the truck doors, and have the truck pulled away from the loading dock.
20. Angry employee, or employee with a bad attitude. Council an angry employee gently, but firmly. Then keep a close eye on that employee.
21. Pawn shops. Loss-prevention personnel should periodically visit pawnshops to see if any of the store's merchandise is on display.
22. Yard sales. When you know any of your employees are having a yard sale, honor them by visiting their yard sale. You just might find some of your merchandise for sale.
23. Flea markets. If any of your employees have booths at flea markets to make a little extra cash, honor them by visiting their booth. You just might find some of your merchandise for sale.
24. Newspaper classified ads. Periodically scan classified ads to see if any of your employees' telephone numbers and/or addresses are listed for items for sale that are products you sell in your store.