What is internal theft in retail?

Unfortunately, there’s no denying that employee theft is a reality of retail operations. Employee theft, also known as internal theft, occurs when employees steal from the organization where they’re employed.

What is considered internal theft?

By definition, internal theft is the theft of property committed by individuals who are employed in some way by a corporation/client, etc. The best defense for this is background checks, preemployment screening, internal controls, and auditing.

What percentage of retail theft is internal?

Operational error: damage from handling, spillage and vendor errors (such as delivery shortages) account for about 21 percent of losses. Internal theft: employee theft accounts for about 30 percent of losses.

How do you handle internal theft?

The Next Steps: How to Handle Employee Theft

1. Ensure the employee no longer has physical, electronic access, or financial access.
2. Investigate the theft and the employee to determine the extent of the damage.
3. Follow your company’s disciplinary process.
4. Report the employee’s theft to the police and your insurance company.

What happens if you steal from a store you work at?

The company you stole from could charge you with gross misconduct and has grounds to fire you immediately. Or you could face suspension, without pay, while the company conducts an investigation, in which case you could still be terminated or face a major demotion or transfer.

How much do retailers lose to theft?

The country’s largest retail industry group, the National Retail Federation, estimated in its latest report that losses from organized retail theft average $700,000 per $1 billion in sales — or 0.07% of total sales — an amount roughly 330 times lower than the CRA’s estimate.

How can you tell if someone is stealing from your business?

Here are some signs to be on the lookout for if you suspect that an employee is stealing from you:

1. Look for unusual occurrences in the workplace such as: discrepancies of cash amounts. missing merchandise or supplies.
2. Watch the employee’s behavior for: unusual working hours. poor work performance.

How much do stores lose to shoplifting?

Is retail theft getting worse?

The National Retail Federation reported that store losses mounted from $453,940 per $1 billion in sales in 2015 to $719,458 in 2020. The biggest increase over that period happened not during the pandemic but in 2019, when total losses from shoplifting surged to $61 billion, up from $50 billion the previous year.

Is shoplifting a violent crime?

Penal Code 459.5 PC is the statute that makes shoplifting a misdemeanor offense in California. This section defines shoplifting as entering an open business with the intent to steal merchandise worth $950 or less. The crime is punishable by probation, fines, restitution, and up to 6 months in jail.

Is it stealing if you put it back?

YES. Theft is theft even if you later return it.

Why can’t stores stop shoplifters?

Basically, over all it’s simply too much risk for a store to allow a normal employee to stop or detain a shoplifter. It’s not what they are being paid to do and they may not have the proper training to do it correctly or safely.