Top 10 Warning Signs that Employees are Stealing from You

By Russ Warner, Chief Operating Officer

Watch for the warning signs…

Employee theft represents a significant and often underestimated threat to any organization’s bottom line and operational integrity. It’s a risk that must be managed with the same seriousness as external cyberattacks or market competition. As leaders, it is our responsibility to implement controls to deter theft while communicating a clear strategy on maintaining a culture of integrity and honesty.

No single measure can eliminate risk, but recognizing the warning signs of employee theft and fraud and leveraging modern, objective tools can dramatically reduce your organization’s exposure.

10 Warning Signs

1. Financial Discrepancies: Do you have unexplained shortages in cash, altered financial documents, or unusual patterns in transactions?
2. Sudden Lifestyle Changes: Are any employees living a lifestyle far beyond what their salary would support? Are they buying luxury items or taking extravagant vacations?
3. Changes in Behavior: Do you see signs of increased secrecy, defensiveness, or a possessive attitude toward their work or files? Employees who isolate themselves may be hiding something.
4. Refusal to Take Time Off: Are any employees consistently refusing to take vacations or sick leave? This can be linked to a fear of being discovered during their absence when someone must cover for them.
5. Customer and Vendor Complaints: Do any customers claim they’ve already paid an invoice, or a vendor reports unpaid invoices? These may be signs of money being diverted.
6. Unusual Transactions: Do you have any irregularities, such as duplicate payments, unexplained refunds, or checks made out to unauthorized individuals?
7. Unaccounted Inventory: Has there been a consistent rise in missing products or supplies?
8. Working Odd Hours: Does anyone habitually work late, on weekends, or at other times when unsupervised?
9. Financial Distress: Not always a definitive sign of guilt, are any employees facing significant financial hardship—such as large personal debt or addiction?
10. Probing Security Controls: An employee who shows an unusual interest in how financial controls work, or attempts to gain unauthorized access to secure systems, may be looking for a vulnerability to exploit.

The Case for Objective Credibility Assessments

Observing the warning signs is the first step. When a business has a legitimate reason to suspect fraud, the next phase requires an objective and defensible process. This is where modern credibility assessment technologies come into play.

Where allowed by law, EyeDetect and VerifEye can detect deception accurately by measuring imperceptible changes in eye behavior, including pupil dilation, and reading behaviors. They can be integrated into an ongoing policy of testing current employees for compliance with organization standards, as well as tools in internal investigations.

By combining traditional oversight with advanced, scientifically validated solutions, organizations can create a more secure environment, cultivate a culture of integrity, and protect their assets from within.

Source: Privin Consulting Network (https://privin.net)