Are your business’s employees pocketing extra income or stealing customer data? Here are the main types of employee theft to watch for at your workplace.

Most businesses experience some form of their employees stealing from them every year. This can be as inconsequential as taking home office supplies without permission or as concerning and large-scale as embezzlement. You should be wary of employee theft, and these are the main types to watch for.

Money Theft

Money theft is one of the most prominent and damaging forms of employee dishonesty, particularly in financial institutions. This type of theft could entail stealing cash directly, manipulating financial records, or embezzling funds over time. Employees with access to accounts, deposits, or vaults may exploit vulnerabilities in internal controls.

You can prevent this by enforcing strict cash-handling policies, conducting regular audits, and utilizing advanced monitoring software to detect irregularities in transactions. Moreover, for rooms harboring hard cash, consider securing these sensitive areas with proximity key fobs and other access control measures.

Time Theft

Time theft occurs when employees do not work the hours they are paid for, costing companies millions annually in reduced productivity. Common examples include using work hours for personal tasks, engaging in excessive social media use, or “buddy punching,” where one employee clocks in for another.

Timely customer service and attention to detail are critical in business, so time theft can erode efficiency and service quality. Address this issue by implementing clear time-tracking systems, setting expectations for work conduct, and fostering a culture of accountability.

Inventory Theft

Although it is less common in offices than in retail sectors, inventory theft can still occur, especially with items such as office equipment, supplies, or promotional materials. Employees may take these items for personal use or resell them, which adds unnecessary costs to your organization.

To combat inventory theft, keep detailed logs of all supplies, perform regular inventory counts, and ensure that security systems monitor stock areas effectively. Controls like access restrictions can further reduce risks.

Information Theft

Rogue employees may steal client information, trade secrets, or financial reports and use this data for personal gain or to sell to competitors. The repercussions of such theft include legal liabilities, financial losses, and irreversible damage to customer trust.

Mitigate these risks by employing encryption measures, restricting access to critical files, and providing ongoing cybersecurity training for employees. Background checks and strict confidentiality agreements are also essential.
By understanding the main types of employee theft—money theft, time theft, inventory theft, and information theft—you can watch for the warning signs and proactively protect your business.