From the simplest of pilfering to the grandest of embezzlements, businesses suffer a loss because an employee unlawfully takes something from an employer. Finding the culprit is not easy, as it is usually takes years to find the erring employee, and most employee theft comes to the attention to the employer either by another employee or is revealed by accident.

More often than not, it’s the long-trusted employee who is the thief. In other words, the person you least suspect is usually the one who commits the crime.

Here are measures that you can do to prevent employee theft.

Screen job applicants thoroughly – Before hiring a person, do some background checks on him or her, including a check on criminal history, violations, as well as verification of education, past employment, and references.

Consider running a credit check – People with financial difficulties are more prone to fraud. So before hiring a person, you are legally required to notify the job applicant in writing that a credit report may be requested. You also need to receive the applicant’s written consent.

Apply zero tolerance – The more employees believe they will be caught, the less likely they are to steal. Do not tolerate employee theft of all sorts, not only including outright stealing, but also on things like taking a long lunch break without approval, using sick leaves when not sick, doing slow or sloppy work, or coming to work late or leaving early.

Distribute your company policy – Write and circulate a company policy that outlines exactly what constitutes stealing. And if you do discover an incident of employee theft, contact your local police immediately. This sends a message to your employees that stealing will not be tolerated.

Be a role model – Business owners and senior management must themselves be role models of honesty and integrity, or they risk setting-up a work environment that justifies illegal and criminal activity.

Avoid having your finances controlled by only one person – Separation of duties is critical, and no employee should be responsible for both recording and processing a transaction. Do not allow the same person who sends out bills to collect the mail and prepare bank deposits.

Run irregularly scheduled surprise audits – Or you can have a third party audit your books once a year. Insist that your bookkeeper or any employee who has access to the finances take a yearly vacation so you can examine their records.

Check all documents – Make sure that all checks, purchase orders, and invoices are numbered consecutively, regularly check for missing documents. Also, unopened bank statements and canceled checks should be received by the business owner or outside accountant each month and they should carefully examine for any red-flag items such as missing check numbers. Look at the checks that have been issued to see if the payees are legitimate, and make sure that the signatures are not forgeries.

Safeguard all incoming checks – Use a “for deposit only” stamp on all incoming checks to prevent an employee from cashing them.

Look into customer complaints – Personally look into customer complaints that they have not received credit for payments.

Set up a protection system for whistleblowers – Most incidents of employee theft are revealed by coworkers, but many still are hesitant to report these incidents to their employers. That is why you can set up a system where employees may report instances of employee theft anonymously. You may also want to consider offering rewards for informants while keeping their identities confidential.

Safeguard your signature – Require all checks above a nominal amount to have two signatures. Never ever sign a blank check, and sign each payroll check personally. Avoid using a signature stamp.

Get an insurance policy – That policy should cover outside crime, employee theft, as well as computer fraud. This serves as a safety net in case your fraud prevention tactics do not work.

Review all accounts – Owners should take the time to review accounts payable by checking, cash disbursements, and payments. A very common scheme to look out for is billing-scheme fraud where are employee sets up fictitious “phantom” vendors.

Be alert to problem employees – Be on a lookout in case your employee is either disgruntled or stressed, as well as those who have indicated that they are facing financial difficulties. Also look for any unexplained significant rises in an employee’s living standards.

Create a positive work environment – Doing so deters employees to commit fraud or theft. Open lines of communication, positive employee recognition, and fair employment practices will assist in the reduction of occupational fraud.