Discovering that a trusted employee is stealing from your firm can be startling. You may initially feel like turning away or responding forcefully. It’s not an appropriate reaction. Looking the other way leads to more problems, not just with the thief but also with other employees. A strong response could land you in legal trouble. Planning and implementing theft prevention measures before it ever happens is your best way to deal.

Theft by Employees

Workers steal in a variety of ways. The most common in Kingston, TN is stealing money by pocketing loose bills, followed by embezzlement. Theft or malfeasance (evil deeds) by workers or other trusted individuals within the organization is classified as embezzlement. Embezzlement is often defined as the theft or diversion of company funds to the employee/thief.

Money is not the only item that is stolen. Physical assets such as notebooks, pencils, and things can go missing. Data theft or intellectual property theft is an increasingly widespread crime.

Employee Theft Detection

• Workers who steal frequently offer red flags that something is wrong
• These are several red flags that may indicate that an employee is stealing your money:
• Excessive personal spending over what the income allows
• Employee refuses to take a vacation in case the replacement discovers the theft
• Employee wants to work from home or constantly works overtime
• Petty cash goes too quickly
• Employee has an abnormally tight relationship with one or more vendors or is tied to independent contributors that work for you
• The employee has a lot of control concerns

If you witness an employee driving an expensive automobile or discussing financial difficulties, it is conceivable that theft is taking place.

What Should You Do If An Employee Steals From Your Business?

Your first step should be to call an expert criminal defense attorney who can advise you on the best course of action and guide you through an inquiry. You have numerous options when it comes to dealing with the employee. All but one could cause problems in the future.

When considering the impact on the rest of your employees, a written warning, probationary term, and reimbursement all sound like suitable disciplinary procedures. These remedies not only communicate the impression that the theft was not serious, but they also provide someone who stole from you once the opportunity to steal from you again.

• As terrible as it may sound, termination is the only valid option for employee theft.
• Collect evidence to support your termination case. The video and digital evidence are compelling. A witness is also necessary.
• Do an audit of the computer data and financial records.
• Keep copies of documents, electronic files, and emails.
• Preserve a chain of custody to demonstrate that the evidence was not tampered with.

Document all you learn if you conduct interviews or any other type of investigation. It will be required when reporting the theft to the police and filing an insurance claim to recoup losses. Even if the theft is not prosecuted, your attorney can assist you with civil culpability and the termination procedure, especially if the employee is a union member or part of a collective bargaining agreement.

Learning that an employee has stolen from your company might seem like a threat to your child as an entrepreneur or small business owner. Under the guidance of your Criminal Defense Attorney in Kingston, TN, make deliberate efforts to acquire evidence to substantiate the wrongdoing. Set up a policy and basic accounting procedures to avoid future problems.