by David Dunn, Georgia SBDC Do you have any idea how much money is lost in business each year due to criminal activity? There are no totally accurate figures available because so many of these losses go unreported. However, various estimates put the losses at billions of dollars, and some experts say hundreds of billions. Unbelievable! In addition, businesses with less than $5 million dollars in sales are 35 times more likely to be victims of shoplifting, employee theft, burglary, or robbery than are larger businesses. All types of businesses suffer criminal losses, but retail businesses are especially susceptible. Retail businesses absorb approximately 25 percent of the national crime bill! Business owners often do not see this crime damage or are reluctant to admit it. Why? Maybe because 75 to 80 percent of all retail crime is employee theft, and nobody wants to blame it on "Ol' Joe." He's been there for years. Yeah, and maybe he's been stealing the company blind for years. Hoteles en LondresConsider this. In 1989, 93 percent of apprehensions for retail theft were customers, yet employees who were caught stealing took Dala-Flode cheap hotelsseven times as much per person. Seven times as much! Ol' Joe's living pretty good. A recent congressional study found that employee theft increased retail prices by 15 percent. Another study indicated that employee theft was a driving force in 30 percent of business failures. This is serious stuff. Whether you believe this data is fully accurate or not is irrelevant. The point is that employee theft exists, and it is definitely impacting businesses. alberghi a LjubljanaEmployees steal for many reasons. They may feel underpaid and consider what they steal as "fair payment." They may have an expensive habit to support, such as drugs or gambling. Stealing may be their way of holding a grudge against the company for some real or perceived slight. They may think, "It's just a pack of gum." Regardless of the thought process, employee theft can usually be attributed to need, greed, temptation, or opportunity. Whatever the reason for employee theft, it must be controlled in order for a business to maximize its profitability. The best way to stop it is to stop the thievery before it starts. Unfortunately, there isn't a whole lot you can do about an individual's needs or greed. However, you can work on the temptation and opportunity aspects of reducing these crimes. Remember that the owner is setting the tone for the business. He must set a good example. Employees will be more likely to do as the owner does, not as he says do. Owners should not allow ERROR MSGanyone, including himself, to remove any cash or inventory items from the business without the proper documentation. If employees see the owner "taking stuff," they may feel it is an acceptable practice for them also. A business should have security rules, let them be known, and enforce them. When employees and shoplifters know they will be prosecuted, they are less likely to steal. The business should let it be known that security is an important matter to the owner and to the business. The company should take the obvious precautions. Don't leave an open window as an easy "shipping point" for stolen goods. Don't let the same person take out the trash all the time, and glance through the trash occasionally. It may be a channel of distribution for stolen inventory. Don't let the same person keep the books and write the checks. Invest in some security cameras. Use good common sense and don't put total, blind trust in anyone. Remember Ol' Joe. And, when a thief is caught, prosecute! Eventually, word will get around to the other thieves in the community to stay out of your store or risk jail time. There are as many ways to rob businesses as there are businesses, and you can't stop all theft. However, serious and diligent efforts can reduce losses and positively impact the bottom line. Talk to your local law enforcement agencies or the Small Business Development Center. They can give you many tips on this subject. Remember, every dollar stolen comes directly out of your profits. > See also: Risk Management | 
