Causes, Consequences, and Prevention of Asset Theft
25 Nov 2024Asset theft is what happens when an employee or third party steals something from a company.
Asset theft can refer to both physical and non-physical theft and in some definitions, asset theft
can even include things like time theft.
Regardless of the type of business you run, asset theft can happen, and it can cost you millions
if you’re not careful. In this article, we’ll discuss the causes, consequences, and prevention
methods of asset theft, specifically physical assets.
Causes of Asset Theft
When we talk about what causes asset theft, we’re really talking about risk factors. The fewer
precautions you take to deter asset theft, the higher the risk of asset theft.
Some causes of asset theft include:
● Unsecured assets. Unsecured assets are any assets that can easily be walked away
with. An unsecured asset is generally one that is not locked or stored away or protected
by security guards.
● Unmonitored assets. Similarly, unmonitored assets are at risk of theft because there is
nothing to deter thieves from stealing them. If thieves think they might be caught, they’re
less likely to steal something. Monitoring assets can involve a number of strategies
including security guards or other employees, CCTV, or GPS tracking.
● Employees. Poorly trained or unvetted employees can also pose a risk of asset theft.
They have access to your company’s assets during the workday and may be able to
easily steal under the radar.
Consequences of Asset Theft
Financial loss is the first and major consequence of asset theft. When your assets get stolen
you lose out on the money it took to buy or develop said asset. You may also lose out on
customers if your loss prevents you from providing goods or services to customers.
Other consequences include increased downtime and, in the case of non-physical asset theft,
leaked data.
Prevention of Asset Theft
1. CCTV: CCTV cameras will help deter thefts and help you identify and recover any thefts
that are made.
2. Locks: Locking and immobilizing assets also serve as a deterrent, making it much more
difficult for thieves to break in or make off with an asset. Locks and immobilization tools
can be used on storage room doors, truck doors, or on the vehicles or equipment
themselves.
3. Asset tracking: Asset tracking is a great way to deter employees from stealing and
catch any thieves that make away with your assets. With asset tracking you can quickly
locate your equipment for recovery. Plus, asset tracking has a whole list of other benefits
your business can take advantage of.
LVGPS is a trust source for asset tracking, as well as GPS tracking for vehicles, fleets, and
more. Call us at 1-888-544-0494 if you have any questions.
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