What Business Owners Should Know About Internal Theft

Most employers don’t want to believe their own staff could be stealing from them—but internal theft is more common than many realize. It can affect businesses of all sizes and industries, from retail stores and offices to warehouses and service companies.

While not every missing item or discrepancy points to theft, knowing the warning signs can help you act early—before small losses become bigger ones.

What Counts as Internal Theft?

Internal theft refers to any time an employee steals from their employer. This can include:

• Cash or merchandise

• Office supplies or equipment

• Customer data or proprietary information

• Time theft (falsifying hours or misusing work time)

• Unauthorized discounts, refunds, or false returns

Theft often happens in small amounts over time and may not be immediately obvious—especially without systems in place to detect it.

Common Red Flags

Some signs of internal theft may include:

• Inventory or cash shortages with no clear explanation

• Missing equipment or office supplies

• Discrepancies in timesheets or sales data

• Access to restricted areas without authorization

• Other employees expressing concern about suspicious behavior

These signs don’t always indicate wrongdoing, but when patterns begin to emerge, it’s time to take a closer look.

What You Can Do Now

While not every business can prevent theft entirely, there are steps you can take today to reduce risk:

• Limit access to inventory, cash, and sensitive systems

• Use employee checklists for opening/closing procedures

• Schedule regular inventory audits and cash reconciliations

• Reclaim all keys, badges, and devices during offboarding

• Update surveillance equipment and monitor access logs

If theft is suspected, it’s important not to accuse anyone without evidence. A third-party investigator can help you confirm facts without drawing unwanted attention or making premature claims.

How O’Brien & Associates Can Help

If you suspect internal theft, it’s important to handle the situation discreetly and legally. At O’Brien & Associates, our licensed private investigators can:

• Conduct surveillance of in-store or on-site behavior

• Verify employee activity across locations or shifts

• Help identify security gaps and recommend solutions

• Document findings for use in internal or legal processes

We also offer specialized Retail Loss Prevention & Security services designed to reduce both internal and external threats to your business. From on-site patrols and access control to inventory protection and employee monitoring, our team builds solutions around your specific risks.

Whether you’re running a retail store, managing a warehouse, or overseeing a professional office, we tailor our services to match your industry and internal policies.

Contact O’Brien & Associates for discreet, professional support tailored to your business.