Employee Theft: Creativity That Costs You Money

Running a restaurant or convenience store is tough enough without playing detective. Unfortunately, while you’re focused on operations, some employees are focused on their own side hustle—on your dime.

Employee theft isn’t just a problem—it’s an evolving art form. As businesses adopt new tools to prevent loss, dishonest employees find new ways to exploit them. Fraud isn’t disappearing; it’s just getting smarter.

Here’s a look at some of the most common transaction-based theft tactics happening today—and why they’ll continue as long as there’s a register, a POS system, or a free sandwich to be had.

The Greatest (Fraud) Hits: Transaction-Based Theft Tactics

1. Fake Refunds & Voids

Nothing says “easy money” like processing a refund for a transaction that never happened. Employees issue fake refunds, pocket the cash, and leave inventory counts unchanged. Some do this in small amounts, hoping it won’t trigger alarms—kind of like skimming Wi-Fi from a neighbor, but way more expensive for you.

2. Skimming from the Till

A dollar here, a dollar there—who’s really counting? (Well, you should be.) Employees pocket small amounts of cash from transactions, knowing minor register shortages often get brushed off. Even in an increasingly cashless world, this old-school scam refuses to die.

3. Sweethearting

This isn’t about workplace romance—it's when employees give away products for free. They ring up a $20 meal for $2, apply unauthorized discounts, or “forget” to scan an item altogether. If a cashier’s friends and family seem unusually loyal customers, they might not be paying for what they’re getting.

4. Overcharging & Pocketing the Difference

Charge the customer more than the actual price, process the sale, and keep the extra cash. Simple, sneaky, and effective—especially when customers don’t ask for receipts. If an employee suddenly prefers cash payments like they’re running a side business, something’s up.

5. Under-Ringing

Think of this as the reverse of overcharging. An employee rings up a $15 item as $5, typically for a friend or accomplice. If the same customers keep walking away with suspiciously cheap meals or merchandise, congratulations—you’re giving out unauthorized discounts.

6. Fraudulent Discounts

Some employees hand out discounts like Oprah hands out cars. Employee perks, senior discounts, happy hour specials—if there’s a discount button, someone will find a way to abuse it. Bonus points if they invent their own discount category, like the “Monday Sadness Special.”

7. Gift Card Fraud

A classic con: employees activate gift cards without payment or reload them using fraudulent transactions. Some even print duplicate activation receipts for future use. If gift card sales are climbing but revenue isn’t, something’s off.

8. Loyalty Program Exploitation

Loyalty programs are great—until employees start cashing in on them. Some credit customer points to their own accounts, while others create fake accounts to rack up rewards. If one employee keeps winning every giveaway, it’s probably not luck.

9. False Chargebacks

A “customer” (usually an accomplice) makes a purchase, then disputes the charge, claiming it was unauthorized. The business issues a refund—but the transaction was legitimate. If this keeps happening, your store isn’t haunted; it’s being scammed.

10. Tip Adjustment Fraud

A customer tips $2, but by the time the transaction clears, it’s magically become $10. Employees who adjust tips after customers leave are basically giving themselves a raise—without permission. If tip percentages start looking unusually high, it’s worth investigating.

Fraud Isn’t Going Anywhere—It’s Just Getting Smarter

Think about it: every time businesses adopt new loss prevention measures, employees figure out ways around them. It’s a never-ending game of cat and mouse—except the mouse is really good at finding loopholes.

• Businesses invest in technology to reduce loss, but without expert oversight, those same tools can be manipulated. A POS system tracks transactions, but without the right analysis, fraudulent voids, refunds, and discounts slip through. Video surveillance captures events, but without correlation to transaction data, key theft indicators go unnoticed. AnchorPoint combines transaction monitoring with expert-led video analysis, ensuring fraud doesn’t hide in plain sight.

• AI-powered fraud detection is improving, but employees are learning how to make fraudulent transactions look “normal.”

• Cash transactions are declining, but digital theft—through refunds, chargebacks, and loyalty fraud—is on the rise.

What Can You Do About It?

You can’t stop people from trying to steal, but you can make it a whole lot harder for them. Here’s how:

• Use expert-led transaction monitoring – Spot patterns of fraud before they become costly.

• Integrate video surveillance with POS data – When a suspicious transaction occurs, AnchorPoint helps tie it to video evidence.

• Run frequent audits – Randomly check refunds, discounts, and voids to catch trends early.

• Train employees (and let them know you’re watching) – Sometimes, knowing there’s oversight is enough to deter theft.

Final Thoughts: Stay One Step Ahead

If employees put as much effort into their jobs as they do into stealing, business would be booming. But as long as there’s opportunity, theft will continue—evolving with technology and finding new ways to slip under the radar.

At AnchorPoint, we make sure you see what’s happening before it hits your bottom line. With real-time insights to act on and expert-led analysis, we help businesses shut down fraud before it becomes a costly problem.

Because while creativity in the workplace is great, we’d rather see it in customer service—not in theft schemes.