Employee Theft Investigation

LPT Security Consulting is a Houston-based, full service, security consulting firm.  The founder and President, J. Patrick Murphy, has over 35 years experience in the areas of law enforcement, security management, loss prevention and consulting.  He has investigated over 1000 internal theft case and is an expert in investigative interview techniques.

Employee theft investigations, if done improperly, can lead to litigation against an employer, bad publicity, and morale issues with the remaining employees.  Investigations of any kind should be conducted with extreme care with the only mindset of protecting the company from liability.  Getting the employee to " 'fess up", is not the true goal.

Here are some quick tips on investigating employee theft:

1. Discretion is critical.  Investigations should be on a need to know basis.  Have confidentiality agreements created for those who may be interviewed or who may simply know about the investigation.  Make it clear that violating the confidentiality agreement could lead to termination.

2. Be patient!  Theft is never a single incidence nor is it confine to one method.  Exhaust all avenues before taking the next step.

3. Document everything.  Maintain a file with all notes, statements, documentary evidence, accounting printouts and alike.

4. Consider obtaining advice and counsel from your legal department, company attorney, or an outside consultant/private investigator.

5. Employee theft, fraud, or embezzlement investigations are criminal investigations.  Company representatives are the ultimate subject matter experts and witnesses if prosecution is chosen.

6. Before conducting an employee interview, have your facts and evidence straight.  Never bluff during questioning.  If  you have to bluff then you don't have the evidence you need.

7. Advise the employee being interviewed that they can stop the interview and leave at any time.

8. Never threaten to call the police if they don't confess.

9. If possible, take a written statement from the employee about everything they recall about the thefts.  Remember, no one is ever caught the very first time they commit theft.

10. There is no need to involve the police immediately.  There is no value in having someone taken out in handcuffs.  Primarily though, waiting allows the investigation "package" to be properly prepared to give the authorities.

There are many more detailed articles and information on employee theft here.  Please take a moment to see if they can be helpful.