Workplace Theft/Stealing

The Computer Fraud and Abuse Act: Employer FAQs

Did an outgoing worker copy client data files and use them for his or her new job? Has an employee accessed a company database to obtain a fellow employee’s home address? If a worker taps into business data without authorization or exceeding the authorization they’ve been granted, the Computer Fraud and Abuse Act may give you recourse for legal action.

What is the Computer Fraud and Abuse Act?

Also called the CFAA, this federal law prohibits individuals from accessing computers without authorization or in a way that exceeds authorized access. The law was passed in 1986 and has been amended numerous times since.

Can employers use the CFAA to bring action against employees who access data without authorization?

Yes. In fact, a number of recent court decisions have supported employer use of the Computer Fraud and Abuse Act:

A Social Security Administration employee was accused of using SSA databases to access information about women he knew. For instance, he looked up data regarding his ex-wife’s earning history. The worker also used the databases to locate the address of a woman he was interested in so he could send her Valentine’s Day flowers. The man was convicted of 17 counts of violating the Computer Fraud and Abuse Act, and the the 11^th Circuit Court of Appeals upheld the conviction.

An IT employee in a Michigan advertising firm accessed confidential information regarding the company’s CEO. When the worker shared the files with company management, allegedly to reveal the firm’s computer security weaknesses, she was fired and the police were notified. She was later convicted of Computer Fraud and Abuse Act violations and was ordered to pay the company restitution. The conviction was upheld on appeal.

The 9^th Circuit Court of Appeals has ruled that “any person who obtains information from any computer connected to the internet, in violation of [an] employer’s computer-use restrictions, is guilty of a federal crime.”

How can I protect my business from employees who steal data?

Don’t take it for granted that workers know what they can and cannot do with information collected and maintained by the business. Take time to review and update the company’s computer and data use policy. Examples of what to include in a computer and data use policy might include guidelines that prohibit:

Obtaining access or hacking into systems the employee is not authorized to use;
Using another employee’s log-in or password to access information;
Breaching or monitoring computer or network security features.

The Computer Fraud and Abuse Act may provide the recourse you need when an employee accesses company data without or exceeding authorization. Give the company the best chance of success in those cases by having a clear computer and data use policy in place and ensuring employees are aware of the policy.

Dianne Shaddock is the President of Easy Small Business HR, Employee Hiring and Managing Tips and the author of the ebook “How To Supervise: What Your Boss Never Told You Before You Took the Job“, A Step-By-Step Guide For New and Seasoned Managers.

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Is It Really Stealing? Petty Theft In The Workplace

Here’s a post that I pulled out of the Easy Small Business HR Archives from over a year ago. It still proves to be a popular topic– stealing in the workplace.

An employee puts a pen and notepad in his bag on the way out of the office because he’ll need something to write with so that he can make a “things to do list” on the way home.

Another employee needs to make copies of her bank loan paperwork and uses the office copy machine along with the office copy paper to make copies of a 12 page document in triplicate. The pen, notepad and copy paper were purchased by the company for company business, yet these items are being used for personal use. Are these employees stealing from the company?

Workplace theft is an issue that can’t be ignored. Businesses lose untold amounts of money each year through employee theft; from laptops, computer monitors and company cell phones, theft is a real issue for many businesses.

I can say with some certainty that your employees who are using office supplies for personal use do not believe that they are stealing. For most employees, taking office supplies is really just a matter of convenience and not given a second thought.

But should you consider this behavior stealing? Does the taking of office supplies that don’t belong to you fall under the same net as the taking of more costly workplace items? It depends on your definition of stealing, how rigid or loosely applied your definition of stealing is, and how you would like to apply your definition to the workplace.

According to the “Merriam Webster” dictionary, to “steal” means:

~To take the property of another wrongfully and especially as a habitual or regular practice

~To take or appropriate without right or leave and with intent to keep or make use of

~To take surreptitiously or without permission

~To appropriate to oneself or beyond one’s proper share

Using the literal interpretation of what constitutes stealing, taking anything that doesn’t belong to you is stealing, period. I would argue that when it comes to removing items from the workplace, that there should be a less rigid definition of what theft means. Employers have the responsibility of defining what actions in the workplace constitutes stealing; especially if an employer’s position is that taking even a small office supply such as a pen is stealing.

Yes, taking property that is not yours can technically be considered stealing, but do you really want to label an employee who removes a pen from company property, or who uses copy paper for personal use as a thief?

Replacing office supplies is costly for an organization, especially if the supplies are not being used to further advance the work of your company. You can minimize these types of losses by making it clear to your employees both verbally and in writing what your expectations are regarding company property.

Let your staff know that in order to curtail expenses, employees should be mindful not to use office supplies for personal use at any time, or minimally without prior permission.

It’s a best management practice to have a general policy that addresses what the consequences are if an employee is caught stealing, but use common sense when determining which actions should be used as a teaching moment versus actions that should be addressed swiftly given the severity of the infraction.

What do you think? I welcome your general comments or your experiences with workplace theft.

Dianne Shaddock is the Founder of Easy Small Business HR, Employee Hiring and Managing Tips. Through the Employee Hiring and Managing Tips podcast, blog, and weekly ‘quick tips’ e-newsletters, Dianne offers expert advice on how to make better hiring decisions, manage difficult employees, develop employee policies, motivate staff, and so much more. No stuffy, corporate HR policy lingo; but straight forward, easy to understand and implement advice for businesses just like yours. Stay ahead of the curve and go to Easy Small Business HR for more tips on how to hire and manage your staff effectively.

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Tips On Preventing Employee Theft In The Workplace

In my last blog post, “Stealing In The Workplace– Statistics and Impact For Small Businesses“ I shared with you a number of eye opening statistics on the impact of workplace theft for small businesses.

The articles highlighted below are helpful reads for business owners who don’t know where to begin in terms of identifying and preventing workplace theft.

“Eight Tips To Prevent Employee Theft and Fraud”

“How To Stop Employee Theft In Your Small Business”

Whether employee theft is a real issue for your business, or you just want to be proactive in thinking about how to prevent stealing in the workplace, reviewing these articles will help you to put this costly issue into perspective as you begin to develop an approach that suits your business needs and workplace culture.

**Small Business Resource**

Is that job candidate who he says he is? Do a background check now! Our Comprehensive report includes arrest and warrant records

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Stealing In The Workplace– Statistics and Impact For Small Businesses

Statistics show that workplace theft is a serious issue and the impact of theft on small businesses in particular can be devastating.

According to “Employee Theft Solutions” a division of the Shulman Center which specializes in employee theft:

The FBI calls employee theft “the fastest growing crime in America!”
The U.S. Chamber of Commerce estimates that 75% of employees steal from the workplace and that most do so repeatedly.
One third of all U.S. corporate bankruptcies are directly caused by employee theft.
The Boston Globe and Denver Post newspapers recently reported that U.S. companies lose nearly $400 billion per year in lost productivity due to “time theft”
or loafing.
The American Society of Employers estimates that 20% of every dollar earned by a U.S. company is lost to employee theft.

As you can see, employee theft is a very serious and widespread issue that can cripple an organization.

In an upcoming blog post, I’ll share with you several helpful resources that focus on tips for preventing workplace theft.

**Small Business Resource**

Is that job candidate who he says he is? Do a background check now! Our Comprehensive report includes arrest and warrant records

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