Evening star., 1949-07-10
Inside Crooks
Their Share
Crime Study Shows How
Business Firms Can
Stop Thievery
By Lawrence N. Eidred


ateurs" are costing United State
businessmen fully as much il
annual thievery as are the pros.
| So says the Continental CaSualt.
Co. in telling of causes and cure
for the businessman annual crim'
cost of billion dollars or so.
In q booklet called Crime Los!
Prevention" the company say
crimes committed by dishones
employees. estimated at more thar
$500, 100000 annually, have in
creased sharply the past two year,
and, from present indications, art
far from having reached peak.
Much of 1t Preventable
Employe or inside" crimes in.
clude embezzlement. fraudulent
conversion, theft and so forth
"Professional" crimes, such as rob.
berry and burglary, run to around
5000, 100000 a year, and forgery tt
some s300,000,000, the company
estimates.
"A substantial percentage oi
this appalling loss is prevent
able" the company declares
Numerous excellent, effective
mechanical devices are readily
available for minimizing or pre-.
venting losses by professional
criminals.
There are also many tested
proved business controls and sys.
TENS which can easily be employed
for reducing or eliminating losse.
due to employe dishonesty"
To help business protect itsel1
against the rising flood of crime
loss the insurance company show.
how easily handwritten records
such as sales slips, inventory lists
collections, checks. payrolls ane
miscellaneous accounts can be
falsified.
Cash Register Tricks
A customers sales check car
read 11.00. but a dishonest clerl
can swiftly make the stores dupli.
cate slip read 400 and pocket thu
difference. Or the 11.00 on thu
original can become $1.00 on thu
duplicate with the addition of ar
over the /.
Other precautions which busi.
nessmen can take include these
Checks for paying bills or sal.
aries should be signed and coun.
tersigned by two or more respon.
Sible officials. All checks should be
prenumbered with serial number:
which can be recorded. should
be printed on paper designed tc
prevent alteration and the
amount of the check should be
entered by a machine designed to
prevent alteration.
Incoming checks should be in
dorsed Immediately for deposit
only and should be listed and
properly and promptly credited.
Accounts should be audited and
promptly credited.
Accounts should be audited and
supplies inventoried regularly.
In personnel, selection of en-
ployes should be made by detailed
written application.
Good environment is conducive
to honest performance of duty
Employees who are underpaid
overworked or abused often steal
without compunction. They fee
that they have it coming" the
company said.
Employe duties should be SC
divided that no one person is
responsible for and completely
handles any one function or phase
of the business. Vacations ano
overtime also are things to keeI
an eye on.
Warehouses; Suspect
while some employees actually
are so industrious that they do not
want to take their regular vaca.
tion," the company noted, "it i.
advisable for the protection Of
management that they do so
Many cases of default, often in.
volving large sums, have been dis.
covered during vacation. If thu
employe refuses to take his du.
vacation. suspicion is justified.
While it often is a commend.
able evidence of industry when al
employe puts in a lot of overtime
particularly If he Is not compen.
sated, too much overtime shoule
sometimes give rise to suspicion
This is particularly true If tn,
individual persists in working
alone after hours and would hav,
an opportunity to tamper with
records, money, securities, inven
tory. sales, accounts receivable o.
AAccounts payable"