A private investigator can identify employee fraud and thief in your workforce, eliminating future threats while maintaining objectivity.
Despite the ability of a business to flourish in any economy, every company is still vulnerable to the possibility of employee theft or fraud. Like a frog in a boiling pot, sometimes companies can be taken by surprise when the theft has gradually grown over a period of time, and no one is the wiser until the business takes an unexpected financial hit. Companies can protect themselves from these frauds with costly in-house investigations into the crime, but a private investigator can go a long way towards identifying all perpetrators, no matter how high up the chain of command it goes.
Recent statistics from several government agencies who supervise finances and labor estimate theft committed annually by employees reaches an excess of $50 billion. Even an isolated incident can blanket a company in a crisis and leave them clawing out of the depths of bankruptcy. It starts with small things, such as taking office supplies for personal use. When this action goes unchecked, the employee might begin taking from petty cash without authorization. The level of the theft will always ratchet up the longer the thief goes undetected.
When an investigator attempts to identify employee fraud is knowing what to look for. Elliot Rysenbry of Trustify says there are six warning signs of employee theft for which Human Resources should be vigilant.
Workaholics
Behaviors of people who might be very dedicated to their jobs are also characteristic of people who might be stealing from your business. People who are always working long hours and never take a vacation. This “dedication” is a front for superiors. People who are stealing via their position do not want to be absent from the workplace for fear a temporary replacement might notice inconsistencies that could indicate fraud.
Hyper-vigilance of connections
When an employee has a close personal connection/relationship with any vendor or associated financial institution, it’s usually not cause for concern of impropriety. However, hyper-vigilance or strong protection of those relationships, it’s possible there’s something in the business arrangement for this employee. One of the most common names for this kind of fraudulent arrangement is “kickbacks” or getting a cut of the profits vendors or financial institutions receive from a thieving employee.
Inflated expenses
This is one of the most common types of theft committed in the workplace. Line items on expense reports are either inflated or fabricated entirely in order to pad the thief’s pocket.
Extravagances
Payroll knows what individual employees make week to week, so when there are unexplained extravagences in an employee’s life, such as a flashy new car, it’s important HR keep an eye on said employee.
Frequent small transactions
Taking from petty cash in small amounts can add up quickly, and is often a sign of more serious, larger-scale fraud being committed within the company.
Entitlement
Employees who feel as though they are underpaid or undervalued at their company are also plausible perpetrators of theft. Whether as a motive or a rationalization, they feel as if what they stole was deserved payment.
While theft can be an extremely toxic element in any work environment, one of the ways to exacerbate it is by conducting a poor internal investigation. Human Resource employees are unsung heroes of companies and businesses, as they are one of the crucial gatekeepers with control over the quality of employees. Not only are they very busy individuals, but they might not be the most objective persons to conduct an internal investigation.
Sometimes a lack of experience with investigations will cause a member of HR to make false or unprepared accusations about the guilt of a particular employee. If this employee is unimpeachable, the company can open itself up to lawsuits and bad press. Even if HR is not conducting the investigation, most employees are not trained investigators and might conduct an inquiry in an illegal manner that could also open the business up to litigation. Sometimes a pay cut for an employee suspected of stealing might seem like a quick and quiet way to resolve these issues, but legal counsel should always be consulted before making these decisions. By the same token, hasty termination of these employees to avoid a messy investigation should always involve the opinion of a legal expert—all in the name of protecting the country from plausible legal trouble.
The simple answer to avoiding all of the aforementioned ways to inflame an internal theft investigation is to retain the services of a private investigator. Private investigators can save companies from themselves in terms of opening themselves up to litigation or bad press. Private investigators have more skill and experience in these areas preventing investigations from blowing up in a negative manner. They are independent contractors, therefore, do not have a dog in the race when it comes to identifying the culprit of the theft. Their objectivity will be crucial, especially if the theft within the company goes all the way to the executive level. Because of their authority over employees, CEOs of companies might often get a soft front from HR or other investigative bodies within the business. Private investigators—being unknown to other employees in the business—can also conduct undercover operations to yield truthful and unbiased results. The private investigator, along with business counsel, can also advise Human Resource departments how to proceed once the culprit has been identified. Whatever the specific needs of a company, always consider hiring a private investigator to conduct internal investigations in order to protect and enhance the longevity of your business.
Identify employee fraud and theft today with Lauth Investigations International. Call 317-951-1100 or visit us online at our website for a free quote.
Contextual events like the #MeToo movement and other public allegations of employee misconduct have many companies throughout the nation reevaluating their investigative needs when it comes to internal conflicts. Among those companies are powerhouses like Microsoft. On May 10, 2019, Satya Nadella, the Chief Executive Officer of Microsoft, announced new efforts to increase the size of its internal investigation teams in order to better address reports of employee misconduct and harassment.
Nadella reportedly said in a company-wide announcement, “I want people to point out my flaws.” This transparent statement of accountability is symptomatic of an accountable business culture, in which employees at all levels of involvement know there is a right way and a wrong way to handle an internal investigation. The head of Microsoft’s HR department, Kathleen Hogan, confirmed to Quartz that this initiative will focus on five areas of the company’s internal operations, including behavior, manager expectations, investigations, accountability, and data transparency. The team is growing from a 7-person team to a total of 23 people, with senior leadership involved in making instrumental changes in weekly meetings, with the caveat that this level of change “does take time.”
The expansion of Microsoft’s investigative team will ensure internal issues, such as sexual harassment allegations, and issues surrounding theft and fraud, will be examined in a more thorough, comprehensive manner. Any action on the part of management at the conclusion of these investigations will be the result of a more diverse set of eyes performing their due diligence. This will reduce the company’s total litigation costs that may result from a wrongful termination lawsuit based on a faulty investigation, as well as bolster the quality of a case when every step of an investigation is given the time and dedication it deserves.
For smaller companies, especially small businesses with fewer than 500 employees, the total cost to hire a fully equipped, comprehensive team of investigators may be more than they can handle. Microsoft, after all, generates billions of dollars in revenue every year, and has the financial capability to set these investigative measures in motion. So where does that leave smaller businesses?
While it can cost a company like Microsoft millions per year for a team dedicated solely to the supervision and investigation of internal issues, the cost to smaller businesses can remain in the tens of thousands when they seek the consultation of an external investigator, like a private detective, or another type of independent investigator. Having teams of professionals dedicated to a company’s internal crises may increase the quality of every investigation, but private investigators bring something invaluable to the table: unimpeachable integrity and objectivity.
After all, an internal team of investigators is still internal. Despite the quality of any investigation within a company, the respondent to any legal action can claim the business or corporation was not objective in their investigation, because the investigators had a stake in the outcome of the investigation as employees of that business. A private investigator’s independence and autonomy means their only loyalty is to the truth, and their findings will face a higher threshold of scrutiny in a court of law. Private investigators also make great witnesses, who can state in-person how their investigative methods lead them to their conclusion and assure the court that all avenues were explored when preparing their findings.
However, some companies learn too late that it’s prudent to hire a private investigator prior to the onset of a corporate crisis. An internal investigation can spin out of control fast, and the integrity of the case can be compromised. Companies bring in internal investigators after an incident has been reported, or long after attempts to resolve the issue internally have been exhausted. In order to minimize costs to the company due to factors such risk oversight, poor business practices, and inefficient human resource operations, businesses should have an independent specialist like a private investigator evaluate a company’s preparedness for a range of common corporate crises.
If you have a corporate crisis and need solutions, Lauth Investigations International is the private investigation firm for you. Call 317-951-1100 today, or visit our services page for more information.
CCTV Cameras in some major US cities are capturing private citizens’ faces in real-time.
Surveillance capitalism in the United States has been steadily evolving in the United States over the last ten years. Since the invention of social media and the rise of ubiquitous outdoor CCTV surveillance systems in major cities, private individuals are becoming more and more visible to anyone who knows where to look, and how to access the images. Now, the announcement that certain American cities are ostensibly planning to install real-time facial recognition software for their external CCTV systems has civil liberty groups in a uproar.
The “authoritarian potential,” as it was denoted in a recent article by WIRED, began in China, with many activist groups condemning the country’s use of facial recognition software to flag suspects who are caught on the cities’ external candid cameras. However, according to WIRED, Georgetown researchers released a report last week that cities like Chicago and Detroit have purchased this software for their CCTV surveillance systems. In addition to the fact that both cities deny current use of this software, there is no federal or state law that would prevent them from doing so.
The technology is innocuous enough. It’s the same technology that allows personal smart devices like iPhones, desktops, and laptops to have security protocol that prevents someone who is not the user from accessing the device. Image recognition software has been used by law enforcement for years to catch criminals, but experts are saying this level of sophistication in technology can create a troubling landscape in which a private individual’s anonymity in public spaces is threatened—experts like Evan Selinger, a professor at the Rochester Institute of Technology, “Historically, we haven’t had to regulate privacy in public because it’s been too expensive for any entity to track our whereabouts.” With the rise of a surveillance capitalism, those days are over.
For civil liberty groups, the premise of this software being used to catch criminals does little to overshadow the specter of Big Brother hanging over them. Experts and activists alike call into question the accuracy of the software, and what effect any inaccuracies will have on persons of color and other private, non-suspect individuals who are minding their own business in a public square. They’ve also called attention to the use of such real-time facial recognition systems on police work, saying technological biases in biometric surveillance will lead to flawed investigations, and resources wasted on faulty leads generated by the systems. In one instance, actor Woody Harrelson’s image was uploaded into the system with the intention of identifying potential suspects who resemble him.
It is difficult to ignore the potential good a system like this could do in cases of missing persons or child abduction. CCTV footage is constantly being utilized by law enforcement to recreate a person’s movements in order to find answers—just recently, CCTV footage was used by Houston law enforcement to investigate the claims of a missing 4-year-old’s stepfather, who says she was kidnapped by two men after he was ambushed on the side of the road. He’s now being held on a $45,000 bond after the CCTV footage outside their Houston apartment directly contradicted his story.
Despite the concerns surrounding this evolving real-time facial recognition technology, one thing is certain: Legislature at all levels of government must have an eye on this technology and its capabilities, bearing in mind that misappropriation could have disastrous consequences to private citizens who are innocent of any wrongdoing. Without rules or regulations to dictate how the technology should be used, cities in the United States could become vulnerable to what has been denoted as a potentially authoritarian practice, eroding our privacy, and threatening our liberty.
The growing awareness of sexual abuse in the media has the public on high alert in all walks of life—a steady stream of investigations into allegations of sexual misconduct within religious communities, sport teams and franchises, civil service, and the workplace to name a few. It seems like every week the news cycle is dominated by another story in which a religious leader is denounced following allegations of sexual abuse against minor members of congregation. Investigations into United States Olympic teams have the parents of minor athletes with their ears to the ground, as the horror of Larry Nassar’s crimes continue to shake out in civil court. Leaders within these communities are educating themselves on how the power structure of these institutions leaves minors vulnerable and in many cases are depending on the services of independent private investigators to conduct unbiased, thorough investigations.
In cases where there are allegations of abuse, there is an immediate division between the survivor and the alleged predator. Many of the parties involved will immediately fall on one side or the other. Employers, colleagues, and public relations representatives in the alleged abuser’s life will begin a rash of character defenses, claiming that there’s no way an individual as friendly/respected/admired as them could be capable of such disgusting actions. Parents and loved ones in the survivor’s life will rally in support as they attempt to take on not just their abuser, but potentially an entire institution as well. All of the parties directly involved have a stake in the outcome of the investigation. Institutions that are suspicious of predatory behavior in their ranks often prefer to handle the investigation in-house, using their own investigators in the form of management, attorneys, or employees in another supervisory capacity to do the fact-finding. Not only can the qualifications of these individuals range across a spectrum of investigative prowess, but because they are employed by the employer of the abuser, they likely will have some sort of bias as an investigator. This is why it’s so important to hire an independent, third party private investigator from the onset of any allegations of abuse. Like any unimpeachable structure, the integrity starts at the foundation, with thorough fact-finding by an experienced, qualified investigator. Ethically, a private investigator’s only loyalty is to the truth, and without any stake in the outcome of an investigation, their findings can withstand a higher level of scrutiny than an investigator employed by the abuser’s corporation or institution.
The most qualified private investigators for sexual abuse investigations have a wide array of experiences in multiple areas of criminal justice. Unlike the resumes of corporation and institutional employees, they will have likely majored in an area of criminal justice, have worked law enforcement, have been retained by either the prosecution or defense to assist in a case, and have an intimate knowledge of criminal procedures and investigative methods. Independent private investigators have to be able to work multiple angles in an abuse investigation, vetting every statement by survivors and witnesses, as well as doing thorough fact-finding on the alleged abuser in the form of an extensive background check, with special focus on their work history and criminal record. This kind of comprehensive groundwork lays a strong foundation for any litigation that might take place following the solution of the investigation. And because the private investigator is an objective third-party, the case will have integrity in a court of law.
Another specialty of a seasoned private investigator is surveillance and undercover operations. An investigator who is able to move through a crowd completely unnoticed, melting into the background while they keep an eye on the subject. Sometimes it’s just a matter of looking like you belong, and surveilling the subject from a short distance, or keeping a digital eye on the subject in the form of a camera or tracking device. Regardless, subjects behave most naturally when they do not know they are being watched. Hiding in plain sight, private investigators are able to document an abuser’s movements, correspondence, associates, and schedule to establish means and opportunity with regard to the allegations. Private investigators specializing in undercover operations have an advantage when interviewing witnesses and subjects, building a rapport that allows them to open up to the investigator. This form of subterfuge is often crucial in abuse investigations, particularly if the allegations have not yet become public knowledge. This time is valuable to an undercover operative, because when there are abuse allegations in an institution, there is often a circumventing culture of silence within it. Employees and associates are instructed not to speak to press or law enforcement regarding the allegations, there has not been need for any sort of legal gag order, and these potential witnesses will have their guard down. Private investigators and their field investigators can garner credible leads, leading to a more comprehensive, thorough investigation.
There have been many institutions, particularly in the Catholic faith, that have been accused of what has been characterized as a “cup and ball” routine in which supervisory entities will transfer employees or members of clergy accused of sexual abuse to remote branches of their network, often in different jurisdictions, to prevent law enforcement and investigators from doing their due-diligence. Private investigators are given an autonomy that is free from bureaucratic or jurisdictional chains. They can follow leads to track down multiple witnesses and can track an abuser’s movements—all across state lines.
Regardless of an alleged abuser’s reputation or status, allegations of abuse must always be handled with due-diligence and a sense of urgency. Corporations and institutions have it only in their own interest to eliminate potential predators in their ranks. The cost to retain a private investigator to conduct a thorough, objective investigation is a small fraction of the potential cost to these entities in the form of lawsuits that result from an investigation, usually on the part of survivors who were vindicated in their accounts of trauma and betrayal on behalf of mentors and leaders in their lives. Retaining the services of a qualified private investigator can go a long way to bringing predators to justice and preventing potential ruin of institutions that otherwise provide a great service for individuals in communities across America.
Carie McMichael is the Communication and Media Specialist for Lauth Investigations International. For more information, please visit our website.
Advances in technology are constantly changing the dialogue about how we protect our children from potential predators. Over the last decade, parents have had to reform their strategy when it comes to protecting their child in the real world. Before, parents cautioned their kids on stranger danger, special code words, and remaining aware of their surroundings in public. In a new era of unfettered internet access through multiple smart devices, parents had to contend with the real world being brought into their homes, with predators targeting their children through social media. Now, it appears parents will yet again have to add some new pages to the playbook when it comes to protecting their children from predators on video game platforms with integrated social networking.
Parents with children between the ages of 12-25 will likely be familiar with the online first-person shooter video game known as Fortnite. In the game, 100 players at a time compete to be the last one standing in a battle-royale style of combat. The game features a chat feature allowing players to communicate in team efforts and other uses. It has great potential to foster team building and cooperation between young people, but also has a dark side recently illuminated by an arrest made in Florida in late January.
Authorities arrested 41-year-old, Anthony Thomas, a man who allegedly used Fortnite’s instant-messaging feature to groom over 20 minors, including a 17-year-old, with whom law enforcement allege he had a sexual relationship. The Florida Attorney General’s Office also stated Thomas has been charged with 22 counts of possession of child pornography, and other charges related to his unlawful sexual relationship with the minor. Investigators uncovered he groomed the minors by sending them gifts—including a cell phone so their communication could remain more private. Ashley Moody, Attorney General, remarked about the predation perpetrated, “This case is disturbing, not only because it involves child pornography, but also because a popular online game was used to communicate with the victim.”
Grooming is defined as “a process by which a child predator gains the trust of a victim by building a relationship with the child and then breaking down his or her defenses.” Once a predator has earned their trust, they begin exploitation. Minors who are groomed in the gaming community are particularly vulnerable because the predator may literally be on their team. Cooperative play between players fosters a healthy, “there’s no ‘I’ in TEAM,” mentality, but predators use this relationship to manipulate the minor.
One of a predator’s greatest weapons when grooming a minor online is pop culture. The predator—perhaps unlike the minor’s parents—shows their target they’re “hip and cool”, and are able to converse at their level about something they enjoy. This causes the minor to lower their guard, and the predator begins their manipulation game, culminating in the exploitation of said minor. Online gaming is becoming so ubiquitous predators have developed a way to sense when a minor’s gaming is suddenly being supervised. The moment a minor’s behavior changes—they stop responding to messages, or do so uncharacteristically—the predator can pick up on that and cease all communication before they’re caught.
Unfortunately, even if a parent is supervising the communication between their minor child and other players online, it doesn’t mean they cannot be groomed. In the grooming process, between the introduction and the beginning of the exploitation, predators often suggest moving their communications to a third-party app, like What’sApp or Snapchat. These are apps where communications disappear with ease, and a parent performing their due-diligence in supervising their child’s internet safety may not notice, or even know how to access. TeenSafe says it’s critical parents learn to recognize the signs of grooming in their minor child.
Signs of Grooming
Your child wants to spend more time online or playing games on a console, but won’t tell you why.
Your child does not want to discuss what he or she does online, or what websites he or she visits.
You notice your child is using inappropriate language he or she would not have heard within your home or at school.
When you walk in a room, your child quickly changes the computer screen, mutes the volume on their gaming console, or turns it off all together.
Fortnite and other games with similar messaging platforms have been on law enforcement’s radar for the last few years as the instances of these cases continues to grow. In August of 2018, Titania Jordan, a digital safety expert, appeared on The Doctors to provide parents with helpful tips—not just for supervising their children’s gaming—but also for establishing boundaries that can nip grooming in the bud.
Do not allow minors to have computers, game consoles, or tablets in their room without supervision. Keeping these devices in common areas will increase visibility and deter predators from targeting them.
Instruct your child to never reveal any personal information about themselves to people they’ve met online, especially very specific information, such as where they live or where they go to school.
Create a culture of openness in your home where children feel comfortable coming to you if they feel uncomfortable about an interaction they’ve had online.
People of all ages play video games, but the vast majority of players are either minors or young adults, and parents often find themselves overwhelmed with the strange new world of online gaming. Titania Jordan reminded parents knowledge is power, recommending they verse themselves in the games their children play. This can only heighten your ability to detect when something is off. This means doing research online, and actively listening when your children describe normal gameplay behavior.
Having an internet connection in your home may feel like you’re inviting predators into your home. And true, there’s no time to supervise every single activity your child does online. This is why it’s so important to nurture an open line of communication between parent and child. Not only will parents be able to sense when something is amiss in their child’s online interactions, but a strong bond between parent and child makes it less likely that an online predator will be able to isolate the child emotionally and manipulate them for the purposes of exploitation.
