An Inside Job.

image023Pete owns a small plumbing contractor’s business. He has a lot of equipment, such as backhoes and tools, and a truck to pull the trailer that hauls his equipment to a job site. He also has giant rolls of copper tubing which require a tow motor to move around the shop.

Years ago Pete invested in a security fence topped with razor wire which took care of casual thieves who prefer the after-hours self-service plan for furnishing their home or business. Last year he installed security cameras inside and outside his warehouse after a neighboring business was robbed. He also has a security alarm system for the building.

Today when Pete arrived, he found the front gates wide open. The warehouse door had a giant hole where the thieves used an acetylene torch to cut a hole so that they could abscond with the copper tubing.

Pete knows that one or more of his employees must be involved because the theft has all the hallmarks of an inside job. The security alarm wasn’t triggered and the cameras were turned off. The thieves took only the copper tubing which is readily convertible into cash and hard to trace.

What could Pete have done to avoid this employee theft?

  1. The sad truth is that Pete did everything he could to avoid becoming a victim of employee theft, including installing cameras and an alarm system.
  2. Pete could begin doing background checks on employees in hopes of weeding out potential future problems.
  3. Pete could protect his business from the losses caused by employee theft through insurance coverage, such as a fidelity bond or employee (dis)honesty coverage.

Pete has just discovered the most common of the five motivations for employee dishonesty, which is greed. Greedy employees are inherently dishonest and generally have no remorse for their actions, unless it’s regret at getting caught.

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