SecurityWise: 10 Ways to Reduce the Risk of Internal Theft

20 Jul 2023

Internal theft can be a major issue for any business, including jewellers. However, there are several steps that can be taken to reduce the risk of internal theft. Here are ten ways that jewellers can do this: 

1. Background checks and pre-employment screenings. Conduct background checks and pre-employment screenings on all potential employees. Be wary of candidates who have a history of theft or fraud. By completing background checks and pre-employment screenings, you can help identify any criminal history or red flags that could indicate a potential theft risk. 
2. Security measures. Install security cameras and alarms and limit access to high-value items to only trusted and authorised employees and keep a record of who has access to those items. This can help deter theft and make it easier to catch any thieves if they do attempt to steal something. 
3. Inventory management. Implement strict inventory management procedures, including regular stock checks and audits to ensure that all items are accounted for and that there are no discrepancies. This can help identify any missing items and deter employees from attempting to steal anything. 
4. Surveillance. Install surveillance cameras in key areas of the store, such as the showroom, the stockroom, and the EPOS, to deter theft and provide evidence if theft occurs. Ensure the recorded picture quality, including the printing of any still photographs, is of a good enough quality to assist you and the police in identifying a person. It is generally recommended that security records should be retained for 31 days. If your employees know that they are or can be monitored, this can act as a useful deterrent. 
5. Cash handling procedures. Implement strict cash handling procedures, such as requiring two employees to count cash together and keeping cash in a secure location. Avoid keeping excess cash (particularly high-value notes) in the till, move it to your safe.
6.  Rotate staff. Avoid always scheduling the same colleagues to be working together. This will make it harder for a criminal collusion when potential thieves could team up or cover for one another. Remember that while one employee may look the other way, another staff member may be more inclined to report it. 
7. Access rights. To protect jewellery from internal theft, consider giving employees, assistant managers, and senior level managers each different levels of access to your key control system. Also, consider the restriction of employees’ system login privileges to business hours. If someone needs to retrieve a higher-end item from the system, require two employees to enter their system credentials, preferably with at least one of those people at a management level. 
8. Training and education. Provide regular training and education to employees on the importance of honesty and the consequences of theft as well as how to report suspicious behaviour. This can help create a culture of honesty in the workplace and help reduce the likelihood of theft. 
9. Communication. Encourage open communication and reporting of any suspicious behaviour or concerns about theft. This can help identify any potential theft risks and prevent losses before they occur. Consider offering incentives to employees who report theft or suspicious behaviour; this could be as bonuses or recognition. However, always encourage an open communication environment where employees feel comfortable reporting suspicious behaviour without fear of retaliation. 
10. Employee monitoring. Monitor employee behaviour for signs of theft, such as unusual transactions or patterns of behaviour and always investigate any discrepancies. There are several legal frameworks which need to be considered if you intend to introduce employee monitoring and ensure that employees are made aware of the monitoring, the extent of the monitoring and how the information will be used. 

Source: SecurityWise