With fierce competition and tight margins, internal theft can affect profitability. Businesses need an asset protection strategy to combat internal theft.
Combating internal theft can be challenging. After all, business owners tend to trust their employees and have long considered theft a cost of doing business. But now, with fierce competition and tight margins, it’s hard to remain passive toward internal theft. Businesses should work toward preventing theft, rather than dealing with it after the fact. They need a strong asset protection strategy to safeguard their bottom line.
A business can have numerous vulnerabilities, especially with physical products. While there is no absolute way to stop theft completely, a thorough loss prevention strategy involving developing systems, policies, procedures, and business operations to preempt fraud can reduce its chances.
Theft: Is It Truly An External Issue?
Theft can be internal or external—either way, it’s bad news. Losses from theft can have a significant impact, even on the business's sustainability and reputation. Security against both kinds of theft is vital. But first, let’s find out how the internal and external forms of theft differ.
This is when someone from the inside commits fraud. It could be anything from stealing inventory to embezzling funds, one of the biggest contributors to loss in an organization. A 2020 report says middle management is more likely to be involved in theft because they are familiar with the systems and know how to manipulate them. They also know all the loopholes and leaky buckets they can exploit. However, one should not overlook the frontline workers. Research shows that up to 75% of employees have stolen from their employer at least once, translating into three out of four employees admitting to stealing from management at some stage.
Internal fraud can be harder to predict and monitor, resulting in costlier losses. The report adds 43% of reported fraud cases resulting in losses of $100 million or more were committed by insiders.
External theft is not as likely to happen as internal theft. This includes shoplifting, breaking into a store or business, or robbery. Fraud committed by customers tops the list of external perpetrators. It’s especially prominent in businesses specializing in fast-moving consumer goods (FMCG), such as groceries or over-the-counter medication. However, it’s also one type of fraud that’s easy to prevent with the help of a robust asset protection strategy and dedicated resources, processes, and technology.
Why Is Internal Theft More Common?
Internal theft is more common because your employees know the ins and outs of your business, including vulnerabilities you may not be aware of. It happens when the management is not actively involved in the day-to-day activities or has to manage multiple locations. It’s also common when a lot of power rests in the hands of a few employees.
So, what’s the solution here? How can you save your company from loss and combat internal theft?
The Role of Smart Camera Systems in Asset Protection
When it comes to combating internal theft, video surveillance is still king. However, hackers or internal staff can tamper with the video, so you should have a cloud-based service only accessible to a small group of people. Many cloud-based systems not only provide post-incident protection but also have real-time monitoring. So, if you’re the company manager, IT head, CEO, or director, you’ll have access to the cloud for surveillance.
A smart video surveillance company like Savi has helped hundreds of businesses with asset protection by preempting internal theft. For instance, Savi recently helped Teriyaki Grill optimize its business against the risk of internal theft with an easy-to-use video management dashboard. In contrast, traditional security methods present challenges such as financial costs, human resources, and a lack of technological adaptation.
How Smart Technologies Support Your Internal Staff?
In addition to combating internal theft, smart technologies like Savi help protect your employees, keeping them safe from harassment by customers or unfounded accusations. A smart surveillance system doesn’t only protect you from corruption. It also ensures the company’s culture remains intact and employees feel safe and secure.
Video surveillance also comes in handy when establishing safety protocols at the workplace and remaining compliant with safety policies.
The Benefits of Video Surveillance Systems
A video surveillance system has several uses in the workplace, in addition to asset protection. These are the key benefits you can get by incorporating video surveillance systems:
Safe Working Environment
A video system ensures your employees feel safe and secure. Cases of employee harassment, especially by seniors or managers, seldom get reported. Video surveillance records ensure harassment is monitored and can be safely reported with a video to back up employees' claims.
Companies can go through many lawsuits from angry customers or employees. However, many of these lawsuits are frivolous and can damage your reputation. To combat this, surveillance systems catch problems before they worsen and can even serve as evidence.
Encourages Safety Policies
A video security system can also help enforce safety policies. For example, managers can watch recordings to confirm whether machinery and equipment are being used correctly. This can be beneficial for employees as well as the company.
Reduces Internal Theft
One of the main benefits of installing a video security system is that it deters both internal and external crime. It also shows you have taken extra steps for your asset protection. This can be a good deterrent for vandals, shoplifters, or employees trying to commit internal fraud because they know they can be caught in the act.
Combat Internal Theft With Savi Solutions
A video surveillance system is quite important today as internal and external thefts, and employee harassment is becoming common. That’s why a service like Savi helps you decrease loss, enhance employee training, and take your company to the next level by ensuring asset protection.
There are several ways to combat internal and external theft. However, traditional methods that need in-person monitoring in real-time involve significant costs and are still prone to corruption. That’s why a video monitoring solution is ideal. It offers real-time monitoring along with several other key features for asset protection and optimizing your business.
Ready to make your business and employees safer? Contact Savi today.