Employee Theft and Embezzlement

In cases of theft in the workplace, a distinction must be made between two categories: theft to the detriment of a colleague and theft or embezzlement harming the employer. In both cases, however, the act constitutes a property offence for the enrichment of the perpetrator and is therefore criminally relevant.

The detectives of Kurtz Detective Agency Hamburg provide expert and legally compliant assistance in the surveillance, identification and securing of evidence against thieves within your company: +49 40 2320 5053.

Sometimes it begins with a paperclip

Contrary to the widespread belief that taking small items such as paperclips, ballpoint pens and similar objects is a trivial offence, theft of any kind is a criminal act. While proceedings are usually discontinued in cases of minor value, it can be assumed that an employee who has attracted attention once has neither committed the act for the first nor the last time. In aggregate, even the systematic theft of low-value items can lead to considerable damage.

Hardly any employer is likely to issue a dismissal because an employee has appropriated a ballpoint pen, but that same employer will hardly turn a blind eye if, for example, a warehouse worker “accidentally” places one of a delivery of brand-new tablets into their backpack. Apart from the breach of trust and the offence of theft, there is often the risk that the employee commits such acts repeatedly and resells the stolen goods. This also constitutes the criminal offence of handling stolen goods (Section 259 of the German Criminal Code), which carries a penalty of up to five years’ imprisonment.

Theft and embezzlement at the till

Employees working at the till often find themselves in a particularly advantageous position. Depending on the size of the retail business and the type of checkout process, there are various opportunities for theft.

A few exemplary methods of property offences by employees at the till:

• Option 1: The customer is in a hurry, places the exact amount for the goods on the counter and leaves. The cashier puts the money into the till without entering the amount, then later removes it unnoticed and appropriates it.

• Option 2: The customer selects an expensive item and attempts to negotiate a lower price at the till, stating that they do not require a receipt. The cashier accepts the reduced amount and keeps it.

• Option 3: The cashier has an accomplice. This person shops in the store and approaches the till with a full trolley. However, only part of the goods are placed on the conveyor belt, while some expensive items remain in the trolley. The proceeds from the unrecorded goods are later shared between the supposed customer and the cashier.

Proof of theft and embezzlement at the till by our Hamburg detectives

Cash register theft can primarily be proven through two investigative methods: surveillance and test purchases or integrity tests. Both tactics are not feasible in every environment, which is why our detectives in Hamburg familiarise themselves with the specific conditions on site before determining the optimal investigative approach.

If the prerequisites for monitoring the checkout area, for example with the support of covert video technology, are met, this measure is of course advisable. If this is not possible, our Hamburg detectives may resort to integrity testing, which, among other things, is based on the aforementioned Option 2. In this case, the detective presents the suspect employee with an “immoral offer”.

In other cases, it may be advisable to carry out test purchases while closely observing what happens to the money received and whether a receipt is issued. Test purchases can serve not only to expose employees committing deliberate offences such as theft and embezzlement, but also to assess operational processes, thoroughness and the motivation of your staff. This constitutes a measure of internal control through which weaknesses and potential improvements in operational procedures can be identified. Seek advice from our Hamburg detectives: +49 40 2320 5053.

Not every friendly colleague is a pleasant companion

The nightmare of every honest employee is the seemingly friendly colleague who either deliberately waits for the right opportunity or simply seizes the moment to appropriate the property of a conscientious colleague. A colleague with whom one may have worked for years and whom one believes to be trustworthy. One leaves the office only briefly, and suddenly the smartphone has disappeared. But who was it? Over 20 employees are present in the office – how is the perpetrator to be identified?

In terms of office theft, Hamburg ranks second in nationwide statistics, certainly not an honourable position. Only Berlin, in first place, has slightly higher case numbers than the Hanseatic city (as of April 2015) – but that offers little consolation to those affected. Even a single incident of this nature leads employees to begin mistrusting one another, which in turn negatively impacts the working atmosphere, morale and efficiency. To prevent such situations from arising in the first place, preventive measures are essential. Particularly in large companies, regardless of whether they are office, warehouse or retail environments, every employee should keep their valuables securely locked away – in a locker, a lockable pedestal drawer or a lockable cabinet. Experience shows that personal contents insurance will only provide cover if valuables are stored securely, that is, under lock and key.

Both in prevention and in identifying the perpetrator, the economic detectives of Kurtz Investigations Hamburg are at your side with advice and practical support: +49 40 2320 5053.