Top 10 Ways Employees Steal (and How to Protect Yourself)

by Russ Warner, COO

Employee testing with VerifEye

Building and maintaining trust is vital to all successful businesses. The reality in many places is that employee theft and fraud are serious challenges, including Latin America.

Based on various reports, a surprising number of businesses are losing money and assets due to internal misconduct. It’s not just the blatant, “in-your-face” type of theft; it’s a whole spectrum of deceptive behaviors that can eat away at a company’s bottom line.

Some examples of employee theft and fraud include:

• Direct Theft – stealing cash or inventory for personal use or resale.
• Skimming – taking money before it’s recorded, such as cash from an unregistered sale.
• Payroll Fraud – creating fake employees or falsified work hours to collect unearned wages.
• Expense Fraud – submitting fake or inflated expense claims for reimbursement.
• Embezzlement – misusing company funds, often by trusted employees in finance roles.
• Data Theft – taking confidential information like customer data or trade secrets, for resale or personal gain.
• Time Theft – getting paid for time not worked, including extended breaks or false time clock entries.
• Bribery or Kickbacks – accepting payments from vendors in exchange for contracts or favors
• Asset Misappropriation – using company assets like credit cards or purchase orders for personal benefit.
• Intellectual Property Theft – stealing proprietary ideas or designs to sell or launch competing businesses.

These challenges aren’t just about financial loss; they also create significant human resource burdens. HR teams are tasked with investigating incidents, managing disciplinary actions, and addressing the low morale and mistrust that theft introduces. This creates a stressful environment that harms everyone.

Credibility assessments (where legal), such as EyeDetect or VerifEye, provide an objective and accurate way to screen job candidates and conduct periodic employee testing, helping companies identify individuals who may pose a risk.

This proactive approach can reduce the need for costly and time-consuming investigations, allowing HR to focus on building a positive and trustworthy work environment rather than constantly reacting to problems.

Using credibility assessments can help companies deter theft from the start and create a culture of integrity.

Sources:
• LexisNexis Risk Solutions: True Cost of Fraud Study – Latin America (2023)
• GAN Integrity: Mexico Risk Report
• U.S. Department of State: Trafficking in Persons Report: Mexico (2024)
• Case IQ: Articles on employee theft.