I feel like an idiot. For years I have helped newsagents deal with employee and customer theft. I have spoken at regional newsagent meetings about this, I have helped police gather and understand evidence in several states, I have sworn affidavits as an expert witness, I have helped insurance companies verify claims. I have even published guidelines for newsagents on how to cut the cost of theft.
If only I had followed my own advice.
On Monday this week we discovered an employee theft situation at one of the stores with which I am involved. We discovered it when hunting down a discrepancy from Sunday’s numbers. Our Point of Sale software Audit Log provided excellent evidence indicating criminal behaviour. Our linked camera system provided the visual proof we needed.
The rest of Monday and Tuesday were spent researching how long this had been going on for. We were shocked – and this is when I began to feel like an idiot. The evidence indicated that upwards of $20,000 had been stolen.
Following discussions with the police and our insurance company I approached the person involved. Within two hours we were paid $12,000 as settlement of the matter.
While we may have got more by pursuing it through the police, the costs to us would have been considerably higher, it would have taken longer to get paid and there would have been a knock-on impact on our insurance policy. There was also a risk that we would get far less.
Having worked with police previously, I knew there would be a challenge on what they would consider admissible evidence. The recent camera footage and companion data from the computer system is good. While this establishes a pattern of behaviour, it is a challenge to get a court to accept that this was going on months or years before to determine the quantum of the theft.
The best way to cut the cost of employee theft is to:
- Regularly review your audit log – if you have the Tower Systems software. I’ll not go into details here for obvious reasons.
- Twice a month select random shifts and carefully review sales counter staff behaviour.
- Review your processes and eliminate any opportunity to adjust anything which affects cash in your computer system.
- Be wary of employees who are over eager to work.
- Once a month, unannounced, run a spot cash balance.
- Consider blocking access to facilities which could facilitate theft.
I am embarrassed that this happened in one of my businesses. Hopefully, I have learned a lesson. There is no doubt that I am less trusting now.
Anyone who wants to know how the theft was done is welcome to call me on 0418 321 338 or email me at mark@towersystems.com.au for details. I have a document with practcial suggestions on how to determine whether employee theft is a problem in your business.
Newsagency employees reading this post who are stealing from their employer, resign because you will ultimately be caught.
Footnote: before anyone says that they have a computer system which blocks many types of employee theft, ours does too. My view is that is someone is desperate to steal from you they will avoid the technology and find another way. By not erecting all of the barriers I could have in this business, it was easier for me to gather evidence and, ultimately, fix the problem.
I am happy to talk to any newsagent about what happened and how we discovered it. The more we share this information the better.