If you run a multi-unit restaurant operation, you know it’s important to monitor employee theft. But it’s easier said than done. In addition to implementing fraud control procedures, you (and your store managers) should be well-versed in the many ways that employees can steal from you. That way, restaurant leaders will be able to spot a questionable action when they see it.
Below are 6 ways your employees can put your restaurant’s cash into their pocket:
Collaborating with other employees is one of the easiest ways for multiple co-workers to steal at once. Misery loves company, and if one person is disgruntled with management, then he or she is likely to seek out others with similar opinions. According to the Association of Certified Fraud Examiners, the average fraud case involves one employee and results in a median loss of $80,000. However, once this number increases to two employees the median loss goes up to $200,000.
Look out for: Poor employee attitudes or disgruntled employees.
Inventory reconciliation issues can be a sign that an employee is stealing not cash, but food. Employees that regularly steal meals do so by taking the food from the back of house without paying for it. Pay attention to sudden drops in your inventory.
Look out for: Inventory shortages and use inventory management best practices.
Theft at the register can go unnoticed without electronic oversight. There are many types of red flag transactions that operators should be on the lookout for. Over-rings, discounts, deletes, voids, and refunds can all be forms of theft. In fact, studies show that 4 out of 10 discount codes used are fraudulent.
Look out for: Suspicious transactions and transaction trends over time.
Taking on more work can be a sign that the employee is actually interested in staying later so he or she can steal from the register or safe. Also, if the employee seems to be working year-round with no vacation it can be a sign of not just hard work but also potential theft. When an employee is stealing from you, taking a week off means they are missing out on opportunities to dip their hands into the register.
Look out for: Employees working long hours or going without vacation.
Time theft involves an employee stealing money from your store by claiming they have worked more hours than they actually have. Be on the lookout for “buddy punching,” a term that refers to a theft tactic where two or more employees punch in or out for one another.
Look out for: Time punches that don’t add up.
Stealing data is one of the more dangerous acts categorized under employee theft. Stealing data involves an employee taking personal information such as social security or bank account information from former employees or current customers. Credit card skimmers make this task especially easy. The portable skimming device allows thieves to steal bank information to make fraudulent credit cards, and is prevalent in the quick service restaurant industry.
Look out for: Employees holding a skimmer in their hand and scanning a customer credit card first on the register and then quickly in their hand.
