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Your biggest friend when it comes to catching thieves in your workforce is information. As soon as you notice that a theft has occurred, make a major effort to gather information that can help you pinpoint when, where, and, if possible, around whom the theft took place.  Data you may want to record and/or search your records for can include:  The exact time and date of when the cash or merchandise was first noticed missing Starting and final totals for each register or point of sale (for when cash is being stolen) Inventory counts and sales reports (for when goods are being stolen) Names of employees working at the time the theft may have taken place If possible, records of access card swipes, etc. Employee expense reports Records of equipment checkout   If you don't have this information, start recording it once you suspect a theft. This alone may be enough to discourage further theft, but if it doesn't, you'll be better prepared to catch thieving employees in the future. Narrow your search down by checking your records for instances where "the numbers don't add up." In other words, look for spots where money or goods appear to go missing. The better your record-keeping, the more likely you'll be able to find concrete evidence of theft. For example, let's say that, when examining your inventory records, you notice that your records for one day show that you had 20 expensive smartphones in stock at the start of the day and that you had 10 in stock at the end of the day, but you only have records of nine being sold. This is a definite red flag and cause for future investigation. Employees that steal cash from their register at work often use a set of related tactics to cover their tracks. These basically involve inputting certain functions into the cash register incorrectly, then using the opportunity to pocket some cash. For example, a dishonest employee may use a register's "no sale" function to steal — when a customer hands over cash for her purchase, the employee may input the "no sale" command (which opens the register), pay the customer their change, and pocket a bill from the now-open register. The customer is unlikely to notice, and no sale is recorded.  Register functions that you may want to monitor closely include:  No sale Refund $0 sale items Reports or print-outs (dishonest employees may pocket money paid while the register system is undergoing a report)   O'Dell Restaurant Consulting offers a comprehensive guide to common employee theft tactics, some of which take advantage of these special functions, here. While the focus is restaurant-centered, many of the tactics discussed are applicable to other fields like retail as well. One common way to fight register theft is to use a system where each employee "checks out" a register cash box at the start of the shift and returns it at the end of the shift. When the cashbox is checked out, the money in it is counted, and when it's returned, the money is counted again and compared to a sales report. This system is relatively easy to put in place and, while it won't stop all forms of register theft, it will catch blatant thieves easily. Using a standardized check-in/check-out spreadsheet can make this system much easier for both employees and their supervisors. Rows that you'll probably want to include on your spreadsheet include: Starting cash Cash sales Credit card/check sales Total sales Ending cash If your business has a CCTV security system, examine the footage for evidence of stealing (especially if the cameras are pointed at locations where theft is likely to occur, like cash registers.) Use the information you've gathered to narrow down the time and place that the theft occurred to as small of range as possible, then watch closely for telltale signs of thievery, including:  An employee's hands passing bills from a register into her pockets Bills going from a register to a tip jar Strange habits around a cash register (e.g., some dishonest employees may subtly mark registers to remind themselves how much they've stolen so they can modify their reports accordingly)  Merchandise going into coats, purses, backpacks, and so on "Good" merchandise going into the garbage  Unauthorized access to safes, cash boxes, etc. After-hours access to the building While a thieving employee is unlikely to admit to his crime if you confront him directly, honest coworkers may be willing to point you in the right direction. Consider calling your employees to your office for a personal, open discussion about the theft you've been experiencing. You can ask them if they know anything about employees who are stealing or if they're willing to help you work to stop this problematic behavior. You can also take the opportunity to remind your employees about your business's policies regarding theft.  When you conduct interviews, make sure that your interviews are done one-on-one behind closed doors. Your employees are most likely to be honest when they don't have to fear running afoul of other employees. You'll also probably want to interview as much of your workforce as you can (every employee, if possible.) This gives your employees plausible deniability — in other words, if their information leads to a firing, it will be harder for the employee who gets fired to figure out who outed him. It's worth mentioning that owners and supervisors don't necessarily have to fight workplace theft on their own. A huge variety of independent consultants and investigation firms specializing in company security and theft prevention are available for help. While the cost of hiring this sort of outside help may not make it worth it for small incidents of theft, these third-party solutions can be indispensable for larger problems. This sort of help can also be especially useful when the theft is occurring at the bookkeeping level of a business. Dishonest bookkeepers can potentially bilk relatively large amounts of money from a company's payrolls without calling attention to themselves, making an objective outside auditor highly useful. Don't make accusations of theft or fire employees without strong justification for your actions. Doing this can lower morale in your workforce and give the impression that you are liable to fire your employees on a whim. These problems may be especially bad if it eventually becomes clear that you were wrong about which employees were responsible for the theft. To avoid these issues, wait until you can prove a theft before you act rashly. In addition, it's important to note that if the employee you fire without proof of  wrongdoing has a contract that guaranteed some form of job security, this may constitute wrongful termination, which can leave you vulnerable to a lawsuit. However, most employment in the United States is "at will" — that is, employees can be fired at any time, for any reason, or for no reason at all.

Summary:
Carefully document each instance of theft. Look for inconsistencies in your records. Pay extra attention to special register functions. If cash is being stolen, instate a register-counting system. When possible, consult video surveillance data. Hold one-on-one employee interviews for information. Consider hiring an outside investigator for an internal audit. Confront stealing employees only when you have convincing evidence.