Workplace theft in the United States is a widespread issue. Employees who should be trustworthy are finding ways to steal and take advantage of the very people who employ them. Here, we will cover the statistics behind workplace theft and the role that security systems play in preventing potential losses.

Workplace theft, by the numbers

To better understand how common and destructive theft in the workplace is, here are some statistics to be aware of, according to Exploding Topics:

• $50 billion–the amount lost to employee theft every year.
• 57% of fraud is committed by company insiders or a combination of insiders and outsiders.
• 20% of data breaches are caused by company insiders.
• 43% of employees exaggerate how many hours they work.

What’s more, Safe and Sound Security found that:

• 75% of employees admit to workplace theft.
• 90% of major theft-related financial losses are linked to employees.
• 33% of corporate bankruptcies in the United States cite employee theft as a factor.
• ~50% of small business retailers have installed security cameras to prevent theft.
• Time theft alone costs employers billions annually in lost productivity.

Types of workplace theft

Stolen merchandise isn’t the only type of workplace theft. There are other ways your business may be affected:

• Time theft: the act of lying about hours worked.
• Inventory theft: stealing physical goods from a company.
• Data theft: illegally accessing and stealing company information.
• Payroll theft: manipulation of payroll data to unlawfully increase personal compensation.
• Embezzlement: stealing company resources, often money, but can be property, company vehicles, smartphones, etc.
• Larceny: theft of personal property.
• Theft of cash: usually involves stealing from a cash register or petty cash.
• Skimming: theft of cash before it can be entered into the company system.
• Accounting fraud: the act of altering a company’s financial records either positively or negatively.

You always want to believe the best of your employees, and the majority of them are sure to be upstanding, but it’s important to prepare for instances like these.

Preventing workplace theft

By implementing internal controls, you can reduce or eliminate the amount of workplace theft your company experiences. Because there are so many ways workplace theft can occur, a well-rounded security system is key. Creating and implementing a code of conduct is a good first step. Everyone should be clear on expectations and consequences.

In some instances, such as time theft, employees don’t necessarily have bad intentions, they just may be new to the workforce or unfamiliar with how a business structure operates. A code of conduct can help employees understand how their actions affect the business they work for.

Installing a security system is one of the best options for preventing workplace theft. A surveillance system can monitor what is happening within the workplace during on and off hours. Making it known to employees that there is a surveillance system installed can help to deter suspicious activities. A workplace security system may include the following:

• Access control: track when employees come and go from the workplace. Access control will deny people who don’t have access privileges.
• Access permissions: grants access to employees only when required and you can revoke access when employees no longer need it. The fewer people with access to sensitive data, the better.
• Remote monitoring: provides your business with 24/7 video surveillance. Being able to monitor your workplace from your computer or smartphone can be especially helpful if you’re out of the office or the office is closed.
• Real-time alerts: provides immediate insights into suspicious activities as they are happening.
• Intrusion detection: an application that monitors network traffic and searches for suspicious and malicious activity.
• Video surveillance: Security cameras deter criminal activity and provide a real-time overview of secure areas.

By opting for an integrated security system, you can benefit from many of these features to protect your workplace from employee theft.

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