If you have employees, you may have the misfortune of running up against a situation where an employee is stealing from your company. The Fireman’s Fund Insurance Company has released a list of tips to both prevent fraud and theft, and be able to pinpoint when it might be happening to your small business.

According to Fireman’s Fund Insurance Company, employee fraud and theft contribute to over 30% of business failures. One way to protect yourself: know the people you’ve hired:

Know your employees. Be alert to the following characteristics of
employees that are key indicators of potential theft:

• Sudden, apparent devotion to work and working late
• Lifestyles well above salary levels
• Strong objections to procedural changes related to financial,inventory or supply matters
• Drugs and alcohol abuse
• Moonlighting jobs which use materials available from their employers
• Evidence of compulsive gambling, persistent borrowing, bad check writing and consistently requesting advances

Read the whole press release (pdf format) for more theft/fraud tips.