It is estimated 30% of employees steal from their employer.
Most of us have dealt with a thief during our lifetime. Devious and sneaky, some thieves behave as if stealing is an art. It is usually a theft exposing them; however, many times, they can strike numerous times before getting caught. When theft happens in the workplace, it can not only be a costly lesson but the cause of a business failing.
An estimated 30% of employees steal from their workplace affecting all types of businesses. For instance, if you are running a restaurant with $1 million sales annually, at only 4% theft within the company, your company would be losing $40,000 a year!
Employee theft costs U.S. businesses over $200 billion in annual losses. Not only are companies trying to prevent the public from stealing items, inventory, assets, and ideas from a business, they must also combat thieves on the inside. Unfortunately, 75% of employee-related crimes go undetected.
Theft can take many forms, such as: stealing money, embezzlement, unauthorized use of business or customer identity, and theft of intellectual property, such as cases of patent or trademark infringement.
Combating Theft is Knowing How Employee Theft Occurs.
Cash
Employees who have access to a cash register is the most common way employees steal from companies. If unsecured, petty cash drawers or boxes, can be an easy target for thieves.
In addition, an employee can quote a higher price than the actual price of an item and keep the difference at the point of sale.
If employees have access to credit card information or checks, theft can happen as easily as sticking a few checks inside a folder, costing the owner thousands before it is detected.
Checks and Fraud
Most banks do not verify a signature on a company check making it very easy to sign and cash a check.
Credit card fraud is a number one threat to companies and consumers because most credit card holders admittedly do not check each line item on their credit card statement.
According to the U.S. Small Business Administration (SBA), companies with less than 100 employees, lose approximately $155,000 as a result of fraud each year, a much higher rate than large companies.
Payroll
Employees may often perform actions and falsify records for work they didn’t do, such as requesting reimbursement for travel and other expenses unrelated to work. Employees may also set up fake payroll accounts for workers who have been terminated or retired. Creative thievery abounds.
Time Sheets
Time theft or “Buddy Punching” is a very popular way timesheets may easily be falsified. Individuals complete this theft by having one employee punch another employee in or out for the other.
Excessive breaks, malingering, surfing the Internet, chatting with employees or taking personal phone calls are other ways time theft occurs. While some of these things may not at first be thought of as stealing, all these actions, or inactions, can affect the bottom line and be taking advantage of an employer.
Vendor Accounts
Thieving employees will set up fake vendor accounts, submit phony invoices and issue checks for the false vendor. These checks can then be signed over to themselves and deposited. In addition, a variation would be paying a vendor $500 and writing a check to themselves, expensing the entire $500 to the vendor.
Merchandise
Loss of inventory can happen in the merchandise distribution process but can also happen before merchandise is made available to the public. Many times, employees will take items from a warehouse or newly arrived items before they are scanned into inventory software. Employees have even been known to steal entire shipping trucks containing merchandise headed to their employer’s company.
Supplies
Some employees steal smaller items such as typical office supplies, but furniture and equipment are not off limits for a thief.
Information
Many employees steal information to benefit themselves or a competitor. Types of information include: office memoranda, proprietary products, customer lists and/or other confidential data. Theft can occur by email, printing, or copying information to a flash drive or cell phone, or simply carrying it out in a purse or folder.
Sometimes, theft can be subtler, such as luring customers away, purposefully providing poor service, even spreading rumors to damage a company’s reputation and cause a down-turn in business. All are considered losses.
While there are ways to combat theft within your company, ultimately identifying the thief before they are hired is the most effective way to reduce the occurence of theft.
The SBA recommends: “One of the first steps to preventing fraudulent employee behavior is to make the right hiring decision.”
Background checks are a good practice for any employer, large or small, especially for those employees who will be handling cash, high-value merchandise, or have access to sensitive customer or financial data.
For over twenty-years, Thomas Lauth of Lauth Investigations International has been working nationwide and helping educate employers on methods used to combat theft.
“The first and most effective way to address theft in the workplace, is to conduct an extensive background check,” says Lauth. “A background check can provide insight into an individual’s behavior, character, and integrity.”
Which Types of Background Checks Should You Conduct?
According to the U.S. Chamber of Commerce, upwards to 30% of business failures are caused by employee theft. Thus, conducting effective, extensive background checks helps to mitigate your risk of hiring objectionable or even dangerous employees.
Not all background checks are the same. As you build a profile of your future employee, there are several kinds of background checks you should consider. For example, a criminal background check is different than checking on an individual’s credit score or military service, these require consent. A criminal background check does not require consent; however, some states have laws restricting how you use the information collected during a criminal background check.
Private investigation firms like Lauth Investigations offer complete background checks while helping you comply with the law.
Protecting Your Legal Liability with Background Checks
Smaller businesses often forego background checks for two reasons: 1. A false sense of trust and security developed by business owners working too closely with employees. 2. Most businesses do not understand the legal liabilities associated with the failure to conduct employee screening and background checks.
Any business where employees provide a direct service and interact with customers, such as contractors or daycare providers, is liable if an employee does harm to a customer and the employee has a history of wrongdoing.
A company, big and small. may not recover from this kind of lawsuit.
Choosing the Right Company to Conduct Background Checks
Protecting the interests of your workplace and customers while reducing potential liability is of utmost importance; therefore, it is vital to select a company you can trust to conduct the background screening both efficiently and thoroughly.
While employers can do some background checking of their own, working with an experienced and reputable company can ensure the reliability and thoroughness of the background screening.
Purchasing instant public records found online is not appropriate for conducting potential employee background checks. Most certainly if your hiring decision is based on tpublic record data, your company could land in hot water.
Most public databases do not fact check, clean up or refresh their data providing completely different information than received from an investigative firm experienced in conducting professional, legal and full background screening.
Private investigators have access to databases to determine if a potential employee has a criminal background.
A reputable company providing background screening services will ensure the information you receive is current and accurate.
If a hiring decision is made based upon information found in the background check, in most cases, the company must inform the potential employee of the source used to obtain the information for the background checks (which is where using public databases can get your company in legal trouble).
What can you expect from a professional background check? According to Lauth, it’s all in the details and you pay for what you get. If you want detailed, accurate information, you will choose a Private Investigation Background Search.
Unlike a personal background search using public databases, private investigators have access to several databases providing a variety of information.
Employment history: This search will bring up employment records to include all positions held, making it easier to find discrepancies in a resume. It will also include salaries associated with the positions.
Academic and professional affiliations: Qualifications to include academic history and certification, even if the person did not complete the program.
Criminal records: Including a detailed outline of all criminal activity from traffic warnings and tickets to arrests and convictions. Also, these include jail time served and fines paid.
Financial Standing: Reflects all liens, judgments, bank accounts, current and previous property ownership, repossession of vehicles or other personal property, NSF checks and bankruptcies.
In addition to the typical information received through a personal background check, a private investigator will include:
Worker compensation claims an individual has filed. This can help determine the character of an individual by looking at the number of claims they have filed which could reveal a person is dishonest and fraudulent.
Ascertain causes of accidents or any criminal activity. DMV reports will show accident dates and basic information but do not reflect the cause. Private investigators can provide the cause behind the accident and whether criminal activity was involved.
Information on business and personal partners.
Analysis of all findings.
Relying on an Internet search is risky. A professional background screening will be more in depth than simply entering a name in a database. When a company’s future is at stake, the only way to go to obtain concise information needed to make informed decisions is a professional, private investigations extensive background check.
As a private investigator, there are certain covert tools–spy tools–you must have under your belt in order to complete missions in a safe and efficient manner. Let’s face it, the job comes with a lot of risks. Tact, stealth, cleverness and a keen eye are just a few of the traits required. In many cases, simply relying on your instincts alone just doesn’t cut it.
Not to worry, though, Lauth Investigations International, Inc. has you covered! Below are the 5 most important spy tools we, at Lauth, believe every private investigator should have if they plan on creating a career in the business.
Camcorders
Camcorders are an investigator’s best friend. They’re probably one of the first spy tools you should purchase. They’re not only great because they provide proof of illegal activity, but they can also be used for surveillance as well. What’s even better, there are several different types of cameras and a myriad of options to choose from.
The three main types of cameras you will need include: 1) a digital camera to record interviews, stakeouts, etc. 2) a concealed camera for more covert missions and 3) a dashboard camera to make your surveillance vehicle even more of a spy tool.
Digital Cameras – Handheld digital cameras have gotten smaller over the years and with features like optical zoom and night-time recording being improved with every new model, it’s easier than ever for private investigators to get the evidence they need.
The camera you pick doesn’t have to be complicated. The main features you need to ensure your camera has is a long optical zoom and high ISO settings. Optical zoom provides clear pictures and videos when zooming in because the lens physically moves closer towards your target. Note: optical zoom is different from digital zoom, which is a feature where the electronics in the camera magnifies the image by increasing the pixels seen on the screen, creating a more distorted picture as you zoom in. Without getting too technical, ISO is a feature used to enhance the brightness of the image you see on the screen, making it easier to capture usable pictures and videos in the dark.
Concealed Cameras – What about the situations where you can’t be parading around with a camera? You’re going to need a spy tool to capture footage discreetly. Luckily, there are several mini cameras available that are camouflaged as regular objects, making them hard to detect. Some of these cameras can even be worn on your person without looking obvious, such as spy cameras inside baseball caps and glasses. Others look like chargers, outlets and fire detectors, just to name a few, which can be used to capture footage without you ever being in the room.
Dashboard Camera – Now, you may be thinking of police vehicles when you hear dashboard camera; however, they can also be of benefit to private investigators. While on the road, a dash cam provides a hands-free solution for capturing videos when you need to focus on driving. Not to mention those long stressful stake outs. With a dash cam, you have an extra eye to cover you in case you happen to miss something.
Surveillance Vehicle
Another spy tool you should consider investing in is a surveillance vehicle. You’re going to be spending a lot of time on the road and you will need a quick, convenient way to get around town. The vehicle you choose for surveillance is one of the most important spy tools potentially making or breaking your investigation.
When choosing a vehicle, bare in mind you need to appear inconspicuous. In fact, it’s best to pick a forgettable vehicle in the general area you plan on conducting the majority of your investigations. You do not want something sticking out like a sore thumb.
Think about the most common make and color of vehicles you most often see in your area and select a similar one. Remember, if you can’t decide on a color, you can never go wrong with silver.
A few other things you will want to consider is the size of the vehicle, how comfortable it feels to you, the amount of miles to the gallon and the amount of tint on the windows.
Larger vehicles are easier to spot while smaller ones are easier to maneuver as well as fit into tight spaces. However, a particular kind of vehicle may work in one area and fail in another depending on the kind of people Living in the neighborhood, so again, be sure to look around you and take notes before making your decision.
The vehicle you select must be comfortable as well because you will be seated in there for hours at a time. Not only when driving, but also during stakeouts. Consider the kind of material used in the interior and the amount of space inside.
Voice Recorder
Voice recorders are great for capturing conversations which will come in come in handy later down the line, whether it be getting a confession out of someone or helping with notes. Just like camcorders, voice recorders come in very small sizes.
Since this is a spy tool, we suggest getting one of the voice recorders disguised as everyday items such as a lighter, usb drive or even a pen. A lot of the models out there now are almost impossible to detect!
GPS Car Tracker
All too often Private Investigators get distraught clients who are worried about their husbands cheating. A GPS car tracker can discover the husband’s whereabouts without staking him out. It’s also useful to pick up on suspicious behavior as most GPS trackers can store a long history, which can be used to pick up a change in regular patterns and routines.
Personal Protection
The last type of spy tools you will need as a private investigator are a set of very important tools. Spy tools for your personal protection. The truth is your job doesn’t come without risks. You may be investigating a criminal which has the potential to be very dangerous.
We recommend you at least have pepper spray on you when conducting an investigation. However, a great tool to consider investing in for your safety is the Olympian 3 in one self-defense. It comes equipped with pepper spray, a stealth stun gun and a flashlight for those night time missions. You can find this and other great spy tools online at the PI Mall website.
Conclusion
All of these spy tools are important if you’re looking to become a more efficient private investigator. Take the time to build up your tool kit. Trust us, it will be worth the investment. Every case is different so be sure to choose the right tools for your particular investigation.
Thank you for taking the time out to read this article. We hope this list has you helped you. Let us know which tool on the list you think is the most important. If there are any important spy tools we missed be sure to leave them in the comments. Lauth Investigations is always looking for new tools to assist us in our investigations. www.lauthinveststg.wpengine.com
When one conjures up images of a private investigator or “PI”, what are some commonalities? Perhaps a long tan coat, a notebook, mustache, and of course your handy dandy – magnifying glass?
Somehow this is the universal image for a profession where you use facts and reasoning to find information. Most people use magnifiers to look at ants.
Detective stories have long altered the perception of what private investigators do so here now lies some basic PI 101 information.
Private investigators are hired by individuals, business, and organizations to seek out the truth. This can take many forms, which is why you have various kinds of PI’s like those who specialize in forensics, lost assets, surveillance, or background checks.
Though certain fictional representations may focus on a PI’s eccentric personality, the job itself is more grounded and based in logic, details, and deductions. Some other private investigator myths are as follows:
1. Private investigators basically have carte blanche when is comes to solving a case.
Couldn’t be farther from the truth. One of several distinctions of a PI from a Craigslist ad offering similar services is their vast knowledge of legal and ethic implications. They work within the system, often with backgrounds in law or law enforcement. Which means several examples you’d see on television aren’t relevant. Pretexting to gain access to phone records, breaking and entering, and important documents (like certain financial information) wouldn’t be accessible to private investigators due to legality and regulations such as the The Gramm-Leach Bliley Act.
2. Private Investigators are the same as police detectives right?
A surprisingly common question, with a simple answer. Police work for the government, while private investigators are hired by people or groups. Because of this, the kinds of work differs, as the police work on more crime matters while PI’s find answers without prosecution.
3. PI’s are just former disgruntled police detectives.
With the multiple kinds of private investigators, their backgrounds come from all sorts. From forensic accounting to computer science, the plethora of backgrounds give PI skills for their particular type of investigation. Depending on the state you may require formal license, or need to pass exams. With each state differing in requirements, sometimes reciprocity agreements are issued to work in several states. LII is licensed in Iowa, Florida, Indiana, and Arizona.
4. Their client base is 1940’s blondes.
Kinds of client depend on the area of investigation, but companies and organizations make up a significant part of PI’s business, often for reasons you wouldn’t expect. For instance, a larger company may hire a private eye to look into corruption from within the organization. By doing their due diligence, it allows for handling of smaller scenarios now in order to avoid a PR/stock price disaster later on.
Private investigation is a detailed process, and though not as heavily based on intuition or donning the look of an action movie star, private investigators can be a great asset in your corner.
Media’s representation of Private Investigators (Source: PInow)
Photo by Nicolas Halftermeyer (Own work), via Wikimedia Commons
Today’s private investigators seem to have it pretty easy compared to those of the past — cell phones, security cameras, and social media accounts are often used to obtain evidence for investigations. Gone are the days when private eyes had to flip through physical documents and phone directories, or find the location of someone with an actual map. And now, thanks to the advancements in drone technology, some investigators are opting to do away with physical surveillance.
A drone, or unmanned aerial vehicle (UAV), is a remote controlled aircraft. Although they have been around for several years, flying personal UAVs is a relatively new hobby. These small crafts have been all over the media lately, even earning the endorsement of Martha Stewart. Like Stewart, many people use drones to take beautiful aerial photos. The market for drones is constantly expanding, and tech companies are keeping pace. Some drones can record a live feed, detect heat, or are small enough to fit in the palm of one’s hand. Others can fly four several hours at a time, scanning entire cities in a day.
Due to their discreet nature, private eyes have begun using drones to catch cheating spouses or dishonest employees. Instead of observing someone on foot for hours, investigators can use a drone to get a bird’s eye view of a suspect and collect video evidence. Using a drone is also safer for an investigator and are cheaper than chartering a plane or helicopter. A recent New York Post article featured a private investigator whose specialty is drones. According to the article, the investigator had to use a drone to record evidence of insurance fraud instead of physically surveying the suspect’s property for fear of being shot.
Because of their invasive capabilities, many are questioning the ethics of drone usage, including U.S. Senator Charles Schumer. Schumer recently called for federal regulations on drones, even going as far as proposing a ban on drone usage by private investigators. The idea of anyone being able to purchase a surveillance drone and using it to record whomever and wherever they want is fairly unnerving. The use of personal drones is uncharted territory, filled with flimsy guidelines and little regulation. The Federal Aviation Administration (FAA) prohibits the flying of UAVs for commercial use or payment. Drones are also not permitted to fly over heavily urban areas, and must alert control towers if they fly too close to an airport (FAA Website). Even so, investigators like the one featured in the Post article are still flying their drones.
Should we start expecting to see drones tailing us as we walk down the street? Probably not.
For now, most investigators are opting to stay on the ground and stick to their tried-and-true surveillance techniques. If evidence is gathered illegally, it may lose its value in court, and a private investigator could lose their credibility.
After a tragedy occurs, we often hear stories of survival. These stories give us hope, and allow us to emphasize with the victims who were brave enough to share their experiences. In these times of hardship, no one is going to question a victim’s story. Haven’t they been through enough already?
Perhaps not. Sometimes there are lies mixed in among these accounts from survivors, which is why properly vetting a candidate is essential.
When the Truth Comes Out
Consider the case of Somaly Mam, a Cambodian woman who claimed she was a victim of sex trafficking during her childhood. According to Mam’s story, she was sold into slavery around age 10 and was then forced to marry a soldier at age 14. Mam went as far as creating a foundation named after her, which raised money and awareness for victims. The organization and Mam herself gained the attention of big name celebrities such as Oprah WInfrey and Susan Sarandon. Many articles and columns have been written, praising Mam for all she had done. However, when a Newsweek journalist did some digging on Mam’s past, it soon came to light that Mam had fabricated her tale (Mullany, “Activist Resigns Amid Charges of Fabrication”).
And let’s not forget about Tania Head, whose horrific account of the September, 11 attacks placed her as president of the Survivors’ Network. Head told reporters she had been in the south tower, witnessing gruesome deaths and nearly losing her own arm before being rescued by the heroic Welles Crowther. She also claimed to have lost her husband, Dave in the attacks. At the time of her debut, the nation was still healing, and no one wanted to interrogate a woman who had gone through so much. However, many survivors began to notices several holes in her story. Head quickly dismissed them and did her best to cover her tracks. It wasn’t until The New York Times began to do a little background checking on her for a piece that the truth came out. Tania Head wasn’t even in the country at the time of the attacks, and had never been married to Dave. In fact, her real name wasn’t even Tania Head (NPR Staff, “The Amazing, Untrue Story Of A Sept. 11 Survivor”).
A Lesson Learned
Even though these women lied about their past, many still struggle with letting them go. Mam raised over $2 million in donations for victims of sex trafficking in 2012, and many Sept. 11 survivors credit Head with helping them heal. But despite the good they’ve done, the fact that they lied remains. The true victims are overshadowed by people like Mam and Head, and the actions of these two leave others to question the stories of the real survivors. When this happens, the organizations and people they were affiliated with lose their credibility. After all, a simple background check was all it took to discover the truth. These organizations handle millions of dollars and deal with sensitive subjects, yet they couldn’t have bothered to double check a few details?
Situations like these emphasize the importance of properly vetting a candidate before they are able to hold a position of power. This rings true for everyone, not just supposed victims. The practice of vetting a candidate is most often used in politics to ensure that they haven’t embellished too much about their past. Companies who are in the process of hiring executives need to examine the backgrounds of their candidates, which was explained in our article on Executive Background Checks.
When it comes to situations like the ones Mam and Head were involved in, it is always best to err on the side of caution and make sure their stories check out. Doing so can prevent legal troubles, liability issues, and even heartbreak.
Digital Cameras – 
Voice recorders are great for capturing conversations which will come in come in handy later down the line, whether it be getting a confession out of someone or helping with notes. Just like camcorders, voice recorders come in very small sizes.
