Is Your Employee a Drug Trafficker? Opiates in the Workplace
According to the Centers for Disease Control and Prevention (CDC), sales of prescription opioids quadrupled during 1999 to 2014. Referred to as an opioid crisis in America, it seems we all know someone battling an addiction to prescription medications.
Opioids include prescription pills (including Vicodin, Oxycontin, and Percocet), as well as Heroin and Fentanyl, a drug that can be injected, taken as a lozenge or through a skin patch.
Nationwide 1 in 4 people who are prescribed opioids will struggle with addiction. The depth of the problem is highlighted in a disturbing CDC post stating, “Almost all prescription drugs involved in overdoses come from prescriptions originally; very few come from pharmacy theft. However, once they are prescribed and dispensed, prescription drugs are frequently diverted to people using them without prescriptions. More than 3 out of 4 people who misuse prescription painkillers use drugs prescribed to someone else.
In addition to the personal toll to the addicts and the American family touched by opioid abuse, the CDC also estimates the total “economic burden” of prescription opioid misuse alone in the United States is $78.5 billion a year, including the cost of healthcare, loss of productivity, absenteeism, increased injuries, addiction treatment, theft, criminal justice involvement, and legal liabilities.
The Drug Enforcement Agency estimates employed persons who misuse opioids account for 64.5% of medically related absenteeism and 90.1% of disability costs.
The use of opioids in the workplace is a growing battle for American business. According to a National Safety Council (NCS) survey, 57% of employers perform drug tests. However, more than 40% do not test for synthetic opioids like oxycodone, one of the most abused narcotics on the market, making accurate national statistics unreliable.
An NCS survey also found 29% of employers reported impaired job performance due to use of painkillers, with 15% citing injuries due to drug use. Up to 70% of employers said their workforce has been negatively affected in one way or another.
The Impact of Drugs in the Workplace
Use of drugs impairs decision making and causes physical impairment, a deadly condition when at work. It causes an overall decline in employee morale, an unsafe working environment and increases employer liability.
It is estimated at least 1 of 6 employees use drugs at work and the toll on the workplace is costly in the following ways:
Addicts are 1/3 less productive than their counterparts
Five more times likely to cause accidents
Are absent up to 20 times more often
Five times more likely to request workers compensation
Contribute to 40% of all industrial work fatalities
Health care costs for addicts is three times higher than other employees
Admitted to selling drugs to coworkers
Admitted to stealing from employers and coworkers
It is estimated 70% of 14.8 million Americans who use illegal drugs are employed. It is safe to assume if you have drug abusers on the job, you probably also have drug dealers operating within your company.
As drug dependency increases, it is common for addicts to buy drugs from friends or coworkers and even steal from their company, co-workers and clients.
Experts have also found the number of heroin addicts have increased as it is common for an opioid user to transition to using heroin when they begin running out of pills and money. Heroin is significantly cheaper than opiates and easier to obtain. Heroin laced with Fentanyl is becoming increasingly popular because it can be 50 times stronger than heroin.
The drug dealer of today is no longer the shady guy driving a decked-out Cadillac, meeting his clients in a dark alley or an unlit street corner. Dealing drugs to coworkers is preferred over standing on the corner selling to strangers and for a drug trafficker, less risky.
At work, a dealer has an employed clientele able to afford the drugs, and someone they can establish trust with while selling under the radar of management in the restroom, parking lot, lunch-room or cubicle.
Oftentimes workplace dealers will sell drugs on credit or a “front” according to the book Undercover Investigations in the Workplace by Eugene Ferraro. Drugs are sold to an employee with the agreement of paying later, usually on payday. Co-workers make the perfect client for a drug dealer and quite a lucrative business, with one Oxycontin pill demanding up to $50-$80 each on the street according to a CNN Money article Prescription Drugs Worth Millions to Dealers.
According to Ferraro, “We have caught employees-dealers (earning less than $10 an hour from their employer) who never carried less than $10,000 cash to work.”
Paydays are usually the biggest days for drug trafficking activity. However, to pay for drugs, addicts often turn to their employers to fund their habits.
With addicts in the workplace, there is a higher incidence of theft of equipment, tools, products and part inventories where drug trafficking and abuse is occurring. Aside from being at increased risk, both abusers and drug dealers are more likely to become involved in additional criminal behavior, stealing from their employers and fellow employees.
What are the signs of drug trafficking and abuse in the workplace?
Are certain employees driving an expensive car far beyond the means of what they make working? Flaunting money? Are your employees leaving without notice to meet clients? High turnover and absenteeism and/or meeting in the bathroom or parking lot? What may appear on the surface to look like comradery, could be a sign of something more.
Robert Avery, 41, worked as the Parental Involvement Director at a Head Start program in Gadsen, Alabama. Instead of offering educational and health services to low-income children, Avery was arrested for selling the prescription drug “Roxycontin” to undercover agents from the program facility.
Even police departments are not immune. November 20, 2017, Jellico Police Department Dispatcher and Fireman Robert Rookard, was arrested in “Operation Thanksgiving Harvest” for selling drugs at work.
In August 2017, more than a dozen Atlanta USPS workers were rounded up for running an illegal drug distribution operation. Sixteen employees working at post offices across Metro Atlanta were arrested for accepting bribes in exchange for delivering kilogram packages of cocaine.
When the FBI received a tip that drug dealers were running packages of drugs through the mail system, they began an 18-month sting putting a fake drug dealer on the street to see how many postal workers they could get to sign up. In a bribery agreement, workers agreed to provide special addresses to the drug trafficker, intercepting and delivering the packages to the dealer, who just happened to be working with law enforcement. The number of postal workers who agreed to participate astounding.
While some companies may assume there is no liability for the actions of an employee, one company is feeling the devastating effects. According to the October 13, 2017, Chicago Tribune article, “Oak Park appeals board upholds pantry’s closure after employee accused of selling heroin,” it was reported The Village of Oak Park in Chicago closed the Austin Food Pantry after 55-year old store manager Edgar Lucas was arrested on 17 counts of heroin sales and possession at the establishment. Charges include 5 counts ofunlawful delivery of a controlled substance determined to be heroin. In the aftermath, the city revoked their business license.
In an appeal, the store owners stated they had no knowledge of the employee’s drug activities; however, Village of Oak Park trustees upheld the decision to permanently close the business. In a written ruling, trustee Cara Pavlick said Austin Pantry owners were “negligent, reckless and careless at a minimum in allowing their business to be operated as a place for the sale of illegal narcotics on numerous dates.”
Drug use and trafficking are often difficult to spot and many times even harder to prove. However, every employer and Human Resources department has a responsibility to ensure a safe environment for all employees, immediately addressing any infraction or suspicion to reduce liability within the workplace and protect your company.
Private Investigators – A Weapon in Battle to Reduce Illegal Drug Use
An internal investigation sometimes involves drug-testing, some use dogs, and some use undercover operatives. Wall Street and other large corporations began using private investigations long ago with the demand ever increasing.
General Motors (GM) reported substance abuse by some of its 472,000 employees and their dependents cost the company $600 million in 1987. To combat the problem, GM instituted undercover operations at 10 mid-western plants and said it would not hesitate to use such investigations in the future. That was then, and drug use in the workplace has only increased.
While employers are encouraged to practice a covenant of good faith and dealing with all employees, protecting the workplace should be the primary goal, and often requires professional private investigators to work alongside law enforcement to ferret out drug use and other illegal activity.
Conducting a private investigation not only reflects your company as being proactive, careful documentation can help achieve a conviction and reduce liability.
Thomas Lauth, owner of Lauth Investigations International, specializes in undercover investigations for both blue-collar and white-collar companies. Having spent over 20 years in the field as a private detective, he believes diligence is key to combating workplace crime. “One can never be too careful or diligent when protecting their company. When working with clients, we tailor our investigation to the needs of each individual client.”
When hired by a client, Lauth’s investigative team provides an assessment and tailors the investigation to the needs of the specific case. Working with Human Resources, the business is profiled to determine the best course of action.
The most effective way to detect drug trafficking and abuse in the workplace is to conduct a covert investigation planting an investigator within the company. Typically, the investigator goes through the hiring process like any other employee, informing minimal staff, allowing the undercover private investigator to protect their identity and integrity of the investigation.
From there, the investigator fits in with employees, developing friendships to gain information about drug activity. In Lauth’s experience, “Many times, our investigators uncover additional illegal activities, resulting from the initial investigation,”
Periodic background checks can also assist companies in identifying employees who are high risk for illegal activity. “At Lauth Investigations, we recommend conducting background checks of all employees, newer employees as well as those who have worked for the company for several years. A lot can change after the hiring of an individual,” Lauth says.
For those who may be concerned office morale may be damaged, Lauth points out a background check can be conducted legally without the employee’s knowledge. “Background checks can reveal drug offenses, fraud, theft and other criminal activity on record with a police department or court and one of the most important steps a company can take to protect their company.”
From the desk of Kristen Justis, Director of Marketing and Customer Relations
DANGERS OF ONLINE DATING FOR ALL GENERATIONS
PART FOUR – THE YOUNG SOLDIER
In previous postings in this series, I have discussed a widower, a divorcé, and a professional who were victims of online dating scams. One would like to believe scammers would have some conscience and stay away for our active duty military or even our veterans. This is not the case. Scammers are not particular when choosing their victims. Lauth Investigations International, Inc. recently handled a fraud investigation for a young military soldier who had been in a long term, live in relationship with a scammer he met online. Many believe these scams occur quickly; however, these individuals are committed and they get themselves in deep in order to complete the scam in its entirety.
Below is a description of a Lauth Investigation’s fraud case which shows military are a prime target for these scammers as they are gone from home often for months at a time. They are not able to be in tune with what is happening at home while they are deployed.
The Young Soldier
Jack is a twenty-two year old Army soldier. He met Gina on line while he was stationed in Kentucky. Gina and Jack began dating and their relationship grew over a period of two years. They are in love and decide to move in together. Jack proposes, they move into an apartment and they are ready to start their life.
In the meantime, Jack has completely isolated himself from his family and friends. His mother, Tara, hadn’t heard from him for over a year. Gina has been added to Jack’s bank account and she has taken control on his finances. In a long term, engaged, relationship, one party taking over the finances is not typically a red flag.
In the summer of 2017, Jack learns he is being deployed to Afghanistan. He attends training in Texas prior to his deployment. While in Texas, Tara broke up with Jack but told him she would watch over his finances and apartment while he was in Texas and through his deployment. Heartbroken and hoping they would get back together once he returned to Kentucky, he agreed to allow her to maintain her control over his finances. Jack even began paying her a monthly rate since she was handling his finances.
After a few weeks of being deployed, Jack finds out, through a neighbor in Kentucky, Tara has moved in another man to Jack’s apartment where he was paying the rent. Once Jack found out, he called Tara and told her he was getting rid of the apartment as he didn’t need it anymore. He advised his parents were coming down to move his items from the apartment.
Jack proceeded to draw up a Power of Attorney for his parents to take over his finances. In the time it took him to get the Power of Attorney, Tara had drained his bank account, shut off his debit card and moved all items from the apartment. By the time his parents arrived at the apartment with a moving truck, the only possessions remaining were some of Jack’s clothes. Tara became a ghost.
Jack’s parents immediately hired Lauth Investigations to attempt to locate Tara in hopes of finding some justice for their son. The experienced private investigators began to uncover the full scope of the fraud which had taken place. The scam on Jack was found to be a well thought out plan.
The private investigators found Tara’s boyfriend who moved into Jack’s apartment was, in fact, her husband. They have pulled this scam on numerous individuals. They meet military personnel online, develop relationships with them (men and women), take over the finances, skim money from the accounts, and disappear with all the money once their true intent surfaces.
Unfortunately for the individuals like Jack, they willingly add the scammers to their bank accounts, thereby making the money common property between the two individuals on the joint account. There is no criminal recourse for this action. The victims may pursue civil action against these thieves; however, the victims generally do not have the money to take this next action.
Lauth Investigations assisted in locating this thieving couple and provided Jack with information to file civil suit against them. Jack reported both individuals to the online dating site they utilized. Hopefully, they will learn their lesson and stop preying on our military.
Private Investigators provide answers for victims and handles cases the police are unable to investigate. Utilizing a private investigation firm is key to uncovering the truth, arming victims with ammunition to proceed as necessary, and hopefully stopping criminals from harming other individuals in the future.
From the desk of Kristen Justis, Director of Marketing and Client Relations
DANGERS OF ONLINE DATING FOR ALL GENERATIONSPART THREE – THE PROFESSIONAL
In previous postings in this series, I have discussed a widower and a divorcé who were victims of online dating scams. Many believe online dating scams only occur when victims do not meet the perpetrator in person and when the perpetrator lives out of the country. This is far from the truth. Lauth Investigations International, Inc. has handled several cases of scam and fraud in relation to online dating sites. Many of these relationships have been in person, long term, and heading towards marriage. The scammers are committed to their end goal and they stay the course of the scam for months, even years.
The following Lauth Investigations fraud case focuses on a professional woman in her mid-thirties. We hear of the cases often where the victims are older, retired, or just plain lonely. Lauth Investigations has found young, successful professionals are just as prone to falling victim to these scams.
The Professional Woman
Julia works for a Fortune 500 company in downtown Indianapolis. She owns her home, drives a nice car and has a hefty 401k. Julia has a multitude of friends she spends her time with including traveling often. One of her friends announces she is now engaged. Julia is in her mid-thirties and eventually wants to be married with children someday. The engagement announces gets her thinking how she would like to meet someone. In that moment, she decides to join an online dating website. Managing an online profile would be an easier way to meet someone instead of leaving it to chance, especially with her busy lifestyle.
Julia begins receiving a lot of interest from various men. She meets a few of them for coffee; however, there was no chemistry. Finally, she begins receiving email communication from Scott, a professional man within downtown Indianapolis who travels often. They communicate for a few weeks and they really get to know each other. After feeling extremely connected, they decide to meet.
Scott and Julia meet for dinner. It was an immediate connection. Julia enjoyed everything about Scott and the relationship begins. Although Scott is out of town quite often for his job, they spend all their free time together. Julia finds herself waiting at home for Scott instead of spending her time with her friends. Months pass by and the relationship begins to get extremely serious. Julia is in love.
The love Julia feels for Scott grows to the point she is ready to be married. She only focuses on him and their time together, until the holidays roll around. Julia understands Scott’s job is a lot of traveling; however, he is out of town over Thanksgiving, then he must go out of town for Christmas and finally New Years Eve. Julia begins to question what kind of job makes you travel and miss Christmas with your loved ones.
The questions start to rush inside Julia. She realizes Scott never has her over to his house, he only stays at her house. He takes a lot of calls while he is with her and he always walks out of the room for these calls. He has canceled a lot of dates with her at the last minute for “work”. Julia thinks back over the year with Scott and she realizes, he has never invited her to work event, she hasn’t met his family, and he has slowly alienated her from her friends and her family.
Julia reached out to Lauth Investigations International, Inc. for a simple background check on Scott. She began to fear he may be married. Even in the initial phone call to Lauth Investigations, Julia was questioning her decision to hire a private investigator as she felt guilty for not trusting Scott. Finally, she realized it is better to be knowledgeable instead of continuing blindly further into deepening this relationship.
The beginning of the investigation, Lauth Investigation’s private investigators found Scott was not married; however, he did not work where he claimed. It was found Scott was unemployed. Further investigating into his background, investigators discovered a long list of criminal activity including Identity Theft, Fraud, Tax Evasion, and Forgery. Julia was advised of our findings and she requested to know more. Surveillance and interviews of his past relations begin.
Rather quickly, investigators discovered Scott was a professional scam artist. He dates and marries women eventually taking their money and/or identity. He had opened credit cards under these victim’s names, he married some of these victims and when he divorces them, he is entitled to a portion of their retirement and checking accounts. Scott was a career criminal.
Had Julia not decided to hire Lauth Investigations International, Inc. to investigate Scott’s background, she would have been just another victim in his long line of scams. Julia was lucky as the scam hadn’t reached the money exchange or theft phase. Julia confronted Scott and she has never heard from him again.
Hiring a private investigator when beginning to date someone new seems deceptive and costly; however, it is better to go in with your eyes wide open. Be proactive and spend some money up front before the scammers take your money and your pride on the back end. Julia has since hired Lauth Investigations to complete background checks on two potentially new boyfriends over the past couple of years. She saw how close she was to becoming a victim and refuses to be in that situation ever again.
Government and military entities are not the only ones spying and conducting espionage investigations to protect our national security. More and more corporations and even small businesses are now hiring expert private investigators to conduct espionage investigations and counter-surveillance to protect “trade secrets” and other classified information.
Cases of economic espionage, industrial espionage, corporate spying and corporate espionage are commonly conducted for commercial purposes but can also include personal information that can later be used to blackmail, discredit and control enemies and competitors.
Espionage or “Insider theft” can cause significant personal and financial harm and described as an individual obtaining secret information without the explicit permission of the owner. For example, a corporation or company spying on another company’s activities, collecting data and information for gain or cause damage, most commonly through the doorway of employment.
Espionage involves clandestine activities. Though methods and motives of spying have changed over time, the desire to uncover competitor’s secrets has not. There is a war going on, and spying the primary weapon.
The FBI concludes “insider threats” or employees familiar with the inner workings of a company who obtain sensitive industry secrets in exchange for large amounts of cash are becoming more common and pose a significant threat to companies worldwide.
To combat this ever-increasing menace to American businesses, the FBI produced a video “” to raise awareness.
Private investigator Thomas Lauth, CEO of Lauth Investigations International, says, “Global trade of fake goods is damaging U.S. markets, along with theft by U.S. retail workers.”
Pirated and imports of counterfeit goods are worth nearly half trillion dollars annually with much of the proceeds going to organized crime, according to the OECD and the EU’s Intellectual Property Office.
“Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact,” reports fake products like footwear, handbags, even strawberries, are commonly presented to the U.S market. While there is significant financial damage occurring, products like pharmaceuticals, toys that are harmful to children, baby formula, and failing auto parts are endangering lives.
According to former Attorney General Loretta Lynch in a 2015 Department of Justice press release, “The digital age has revolutionized how we share information, store data, make purchases and develop products, requiring law enforcement to strengthen our defenses against cyber crime – one of my top priorities as Attorney General, “said Lynch. “Companies like Sony and Target – have demonstrated the seriousness of the threat all business face and have underscored the potential for sophisticated adversaries to inflict real and lasting harm.”
While the Attorney General’s Office, FBI, Homeland Security and law enforcement are allocating more resources to combating intellectual property theft from dangerous outside adversaries, companies throughout the world are encouraged to take the necessary steps to protect their own intellectual property from outside and insider threats.
Insider Theft of Intellectual Property
Experts maintain upwards to 70% of a corporation’s value is found in Intellectual Property (IP). Insider threats come from the inside because the “thieves” are given access to their day-to-day employment.
The value of an organization’s secrets, product plans, customer data, and price lists cannot be underestimated. It becomes necessary to find a balance between productivity and protocol that allows a watchful eye to protect sensitive data and detect insider threat activity. Operational staff should be prepared with information to help them better understand how insiders can damage their agency, and in the various methods used by insiders. They are the front line to help battle IP theft crimes.
Insider thieves commit crimes for varying reasons, to include gaining a competitive business edge, to start a competing business, or personal financial gain.
It is not uncommon for thieves to use networks to send internal server data outside of an organization. The most common method of stealing data is the use of external media such as a writable CD or USB mass storage device. Using corporate email accounts to send information off-site to personal emails and competitors is also common and requires monitoring to prevent such abuse.
It is necessary for organizations to identify risks and develop standards of best practices and policies that address the many ways IP can be exploited. These should include but are not limited to IT Security, removable media policy, controls and inventory, physical security, logs, and indexing tools to identify patterns in behavior. It is especially important to implement heightened security measures during reorganization, acquisition, downsizing, mergers or other organizational events.
Non-Compete Agreements Protects the bottom-line
Employee departures resulting in the scheming of trade secrets and clients has increased significantly in recent years. Many employees leave their employment to begin a similar start-up or pursue freelance work. As a result, it has become common for former employees to approach old clients, steal data, marketing materials and even share negative information to damage their former employer’s credibility.
According to a Wall Street Journal report, with the help of investigators, over the past decade, there has been an increase in the number of departing employees being successfully sued by former employers for breaching Non-compete Agreements (CNC).
Considered one of the most effective ways to prevent the theft of a company’s secrets, having a Non-compete in place and requiring every employee to sign it, can prevent damages that could otherwise last years.
Private investigation firms are playing a significant role in the effort to safeguard information, the detection of costly breaches and providing an evidentuary solution presenting facts when litigation is necessary.
Lauth Investigations International is working to prevent intellectual property breaches, global piracy, counterfeiting and insider threats with data mining experts and field investigators who focus on safeguarding IP and detecting violations utilizing sources that are not commonplace to HR and Operations Supervisors. “It is vital to be able to detect violations to prevent violators from reaping profits and expanding their worldwide market, where damage can extend for years,” says Lauth.
Brand Protection areas include:
Apparel
Music and Apps
Tools and Hardware
Cosmetics and other Products
Logos and Authentic Branding
Indigenous Rights
Author Rights
Content and SEO Detection and Protection
Plagiarism, Marketing Materials and Website Protection
“Our investigators conduct trademark infringement for brands, large and small, trekking through some of the most complicated cases and vast markets such as Hollywood celebrities, apparel, and electronic clients,” says Lauth. “Our team provides intellectual property and litigation support for small business and corporations working with corporate executives, HR, and those in Operations Supervision to provide research and investigations, crisis intervention, employee screening, vendor and supplier screening, electronic discovery, surveillance, loss analysis, and expert testimony if needed.
Working to protecting your brand
“Our private investigation firm will not only work with key staff and operations supervisors to identify current and potential breaches, we work with companies that operate throughout the world to implement the right policies and safety protocol to help protect their IP into the future,” says Lauth.
Lauth Investigations offers free consultations and guidance to help protect your brand. Following are a few tips to help you better protect your IP.
Protect web content and marketing materials by utilizing a DMCA account and protection badge.
Think globally. Obtain trademark protection for worldwide protection.
Set up a Google Alert to police your brand.
Obtain IP Protection for Copyrights, Trademarks, and Patents.
Register trademarks with the US Patent Office.
Develop a Policies and Procedure Handbook and have each employee review and sign.
Utilize Marketing Analytics software such as TrackMaven and Travel IQ for online tracking.
Monitor unregistered infringements.
Create various divisions for a more controlled environment.
FMLA fraud is common. Employees have been known to take FMLA allotted days to go fishing, finish a long vacation after running out of vacation days, and even serve jail time. However, successfully winning a case of FMLA fraud in district court is not as easy as you may think. Proving that an employee’s “out of work” activity conflicts with their FMLA testimony is hard, and often requires a lot of documented research.
Take the example of an employee who was seen drinking and dancing during her sick leave for a bad back, but who won her case against her employer. Or the woman who successfully used her sick leave to take her mother to DisneyWorld. Cases that seem to be open and shut end up being far from it, and it is often due to a lack of information on the extent of the perceived illness, injury, or handicap, or a lack of information on the perceived act of fraud.
If you think you are a victim of FMLA fraud, and that you have an employee who is abusing the system, here are three things you should do before you terminate them to avoid frustrating legal proceedings and possibly losing a winning case.
Hire a Private Investigator- OK, you knew we were going to say that. But in all sincerity, trying to win an FMLA fraud case without the use of a private investigator is essentially shooting yourself in the foot. In the case of FMLA fraud, a well researched case is the difference between winning and losing, because you will need to have details on what your employee is doing that you cannot get on your own. Private investigators can help you contextualize your employees medical situation, look into any plans they had for vacations or trips, help you identify any incriminating evidence, and most importantly, keep you in line with the law throughout the process. If you think that an employee is lying about their FMLA needs, they probably are. Your issue lies in proving that to a judge.
Build a strong argument- As stated above, being out dancing might not necessarily mean that you don’t have a back problem preventing you from work- at least, not to a court judge. If the employer in that specific case did the work of consulting a medical professional and building a stronger argument around their assertion that “dancing means you can work”, they would have probably won their case. They lost because they fired their employee based on assumptions instead of facts. If you are going to fight someone on FMLA leave, make absolutely sure that you are building an argument that will stand up in court. Talk to professionals, research your assumptions (no matter how obvious and self-evident they might seem to you), and don’t terminate the employee until you are absolutely sure that you could back up your decision in front of a judge.
Weigh the pros and cons- Unfortunately, the potential benefit of terminating an employee who abused FMLA might not outweigh the costs of court proceedings, research, and the risk of losing. Of course, you do not want to continue to employ someone who blatantly lies and abuses your company and your trust. But in the case of gray areas, it might be best for your company to let it slide and assume the best. As long as the abuse is not recurring and does not become a habit, giving your employee the benefit of the doubt in minor cases of potential fraud might be best for company morale, and for your checkbook. It simply isn’t always worth the fight, despite the injustice of it.
Winning your case comes down to one thing: being prepared. Take preparation seriously, know the facts, and you have a good chance at getting justice for your company.
We all know about thieves stealing our credit cards from our wallet and using them fraudulently. Did you know there is another way thieves steal our credit card information without touching our wallets? Credit card skimming is an electronic method of capturing a victim’s personal information used by identity thieves.
How Credit Card Skimming Works
A credit card skimmer is a small device used to scan a credit or debit card’s magnetic strip. Once scanned, the skimmer copies all the information on the magnetic strip. The information is then sent via Bluetooth or the thief returns to remove the skimmer where the information is stored. Thieves utilize these skimmers in a variety of locations to obtain information:
ATM’s – There are two devices used for ATM skimming. First, a credit card reader is placed over the ATM’s real card slot. When a card is placed in the slot, the skimmer reads the magnetic strip and copies all the data. Second, a small camera is placed on the ATM in order to record the security pin number. The ATM’s at gas stations and stand alone locations are generally easier to be utilized for this scam.
Restaurants – Everyone has paid for a meal at a restaurant on a credit or debit card. We get the bill from the waiter/waitress and they walk away with our card. Thieves recruit individuals to work at these restaurants. When they walk away with the card, they scan it through the skimmer to obtain the card information.
Retailers – While it is more difficult for thieves to access retailer’s credit card machines, they have found ways around this difficulty. Thieves have targeted self-checkout lanes. They have easy access to install the skimmer and walk away in just a few seconds.
Wireless Skimmers – The upcoming trend for thieves are wireless skimmers. These skimmers only have to be in close range of the credit card and the machine where the card is being used. Wireless skimmers pick up on the transmitters used between the credit card and the machine.
How to Detect a Credit Card Skimmer
Credit Card Skimmers are small and generally undetectable; however, if we have the proper knowledge, we may be able to recognize these skimmers before placing our cards in the slot. Although there isn’t an easy way to detect a skimmer, there are some things to look for when using your credit card:
When at an ATM, check for any tampering with the machine. If the slot where you place your card seems extra large or protruding out too far, pull on it to see if it comes out.
Look around the location for any strange objects. If they do not seem to fit with the location or do not belong, there could be a small camera in the item.
If you are at a location and something doesn’t seem right, turn the Bluetooth on your phone and check for any strange devices trying to connect to your phone. These usually will be a long grouping of numbers or letters.
Skimmers are usually smaller than a deck of cards and they fit onto the card reader slot as if they belong. If there is another terminal near, compare the two if you feel something is off.
How to Protect Yourself from Being a Victim
Credit Card Skimmer Thieves rely on the fact that we are all too busy and rushed to notice little things like a skimmer on an ATM or credit card machine. While we can attempt to detect skimmers when utilizing credit card machines, there are other ways to keep ourselves from being victims:
Take the extra time to go into your financial institution and withdrawal money from the teller instead of the ATM.
If you must use an ATM, go to a bank with the ATM in a well lit area. Avoid gas station ATM’s or stand alone ATM’s.
Always cover the keypad when entering your pin number. If you cover it well enough, even a small camera will not be able to pick it up.
Try to pay with cash as often as possible. I know it’s a pain, but it will protect you from card card theft and help you budget your money better. If paying with cash, the waiter/waitress at the restaurant will be unable to do anything fraudulent as well.
Check your bank account often. Ensure all charges are legitimate. If you see anything odd, report it to your bank immediately.
Trust your gut. If something feels off, it probably is off. Leave the location and go elsewhere.
Credit Card Skimmers are being technologically advanced all the time. Although we can’t always ensure our safety, we can start with these few tips and tricks to protect ourselves and always stay informed. Lauth Investigations International is a private investigation firm assisting individuals determine if they have been victims credit card fraud and identity theft. Asset searches and Background checks on yourself will ensure your identity is your own and no one else is using your information.
According to Ferraro, “We have caught employees-dealers (earning less than $10 an hour from their employer) who never carried less than $10,000 cash to work.” 
Even police departments are not immune. November 20, 2017, Jellico Police Department Dispatcher and Fireman Robert Rookard, was arrested in “Operation Thanksgiving Harvest” for selling drugs at work. 
Unfortunately for the individuals like Jack, they willingly add the scammers to their bank accounts, thereby making the money common property between the two individuals on the joint account. There is no criminal recourse for this action. The victims may pursue civil action against these thieves; however, the victims generally do not have the money to take this next action.
The questions start to rush inside Julia. She realizes Scott never has her over to his house, he only stays at her house. He takes a lot of calls while he is with her and he always walks out of the room for these calls. He has canceled a lot of dates with her at the last minute for “work”. Julia thinks back over the year with Scott and she realizes, he has never invited her to work event, she hasn’t met his family, and he has slowly alienated her from her friends and her family.
Rather quickly, investigators discovered Scott was a professional scam artist. He dates and marries women eventually taking their money and/or identity. He had opened credit cards under these victim’s names, he married some of these victims and when he divorces them, he is entitled to a portion of their retirement and checking accounts. Scott was a career criminal.
The FBI concludes “insider threats” or employees familiar with the inner workings of a company who obtain sensitive industry secrets in exchange for large amounts of cash are becoming more common and pose a significant threat to companies worldwide.
Insider thieves commit crimes for varying reasons, to include gaining a competitive business edge, to start a competing business, or personal financial gain.
First, a credit card reader is placed over the ATM’s real card slot. When a card is placed in the slot, the skimmer reads the magnetic strip and copies all the data. Second, a small camera is placed on the ATM in order to record the security pin number. The ATM’s at gas stations and stand alone locations are generally easier to be utilized for this scam.
