Is Your Employee Stealing from the Company? Find Out How to Prevent It

The topic of employee theft in companies is becoming increasingly common. Over the years I've worked in the fintech industry, I've had the opportunity to speak with clients about various stories of abuse. And not just about small amounts – there have been cases where the company's CEO himself has withdrawn money from a company account. Such situations, of course, result in the employee's dismissal and sometimes even a court case, but before that happens, the company suffers significant losses.

A separate article could be written about verifying people who have access to company accounts, but today I will focus on how to practically secure the company – both at the management level and at the level of ordinary employees who handle everyday business expenses.

Contents:

1. How to verify management staff?

2. How to protect operational staff expenses?

   • Purchases from your own funds and subsequent return

   • Corporate cards from the bank

   • Dedicated financial systems (e.g. Sparados)

   • Detecting anomalies in transactions

3. What to do when an employee steals from the company?

How to verify management staff?

At Financora, we've introduced a policy requiring key positions (CEO, CFO, CTO, board members) to undergo additional vetting. The goal is to ensure no one has financial problems that might compel them to seek company funds.

So we check whether the candidate:

• is not in arrears with taxes – verification in the Register of Public Law Debts (RNP),

• there are no arrears of maintenance or bailiff proceedings – this is what the National Debt Register (KRZ) is for,

• is not listed in private debtor registers – e.g. the Economic Information Bureau (BIG, KRD), where payday loans and other loans are issued.

  
  

Why is this important? Because someone who's struggling financially and sees large sums of money in their company account often isn't thinking rationally. They know they risk detection, but in desperation, they might try anyway. We've had similar cases in the past, so this is now a mandatory step when hiring people for senior positions.

How to protect operational staff expenses?

What about lower-level employees who don't have access to the main account but still make business expenses? Here, too, it's important to protect yourself, as fraud can occur even with small amounts. The following solutions help prevent fraud and verify whether an employee is stealing from the company.

Purchases with your own funds and subsequent return

The simplest method – the employee pays for purchases out of his own pocket, and the company reimburses him with his salary.

• Pros: virtually no fraud, as all receipts can be easily checked, and if someone buys something "for themselves", we simply deduct it when returning the item.

• Cons: VAT is lost, and the refunded amount is taxed as employee income. Furthermore, it's difficult to apply to larger expenses.

  
  

Corporate cards from the bank

Another option is to issue the employee a personal service card with a quota limit.

• Advantages: convenience – you don't have to put up your own money and wait for a refund.

• Cons: If such a card is linked to the company's main account, the risk is enormous. All it takes is for someone in finance to increase the limit, and suddenly the employee can make purchases not for the company. This is usually checked "after the fact," meaning only at the end of the month, and by then it's too late. Therefore, it's safer to set up a separate account just for employee cards.

  
  

Dedicated financial systems (e.g. Sparados)

Modern solutions like Sparados offer much greater control than standard bank cards. Here, you can not only set a limit on the amount you spend but also limit the acceptance network:

• Project managers – cards only work in electronics stores, restaurants and means of transport.

• Administrators – cards only work for online payments for subscriptions.

  
  

If someone tries to pay elsewhere, the transaction is immediately declined. And even if they make a personal expense that fits the category (e.g., buying cigarettes for themselves while on business), the system administrator can quickly verify it, view the attached document, and, if necessary, immediately block the card.

Detecting anomalies in transactions

Such systems also allow for automatic detection of suspicious operations:

• payment at an unusual time,

• unusual amount,

• transaction with a seller with whom the company has never worked before.

For example, if someone suddenly tries to pay at a liquor store and the company has never made such purchases, the system will immediately detect and report it. This allows us to react faster before losses escalate.

What to do when an employee steals from the company?

Theft in a company is something no one wants to experience. Frequent monitoring and transparent policies are always the best approach, but fortunately, tools are already available that significantly reduce the risk. Verification of key individuals for debt, separate accounts for employee cards, and systems like Sparados that block undesirable transactions and detect anomalies – all of this keeps a company several steps ahead of potential fraudsters.

Interested in this topic? Contact us and learn how the Sparados system can help you take full control of your company finances and effectively prevent employee theft.