Stop Equipment Theft and Loss in 6 Steps

Theft of equipment in companies has serious consequences, going far beyond the simple cost of replacing materials. On average, companies lose 5% of their annual revenue due to fraud and internal theft (source) . The most common damages include:

• Direct financial losses: Stolen equipment must be replaced, which immediately impacts the company’s budget. For example, in the industrial sector, the disappearance of specialized tools can amount to several thousand euros per year.
• Delays and decreased productivity: When essential equipment goes missing, it can lead to production or service interruptions. A construction company, for instance, may see a project delayed due to the theft of an expensive machine.
• Increased security costs: To compensate for these losses, some companies have to invest in additional security systems (cameras, reinforced locks, access badges, etc.), representing an extra cost.
• Atmosphere of distrust and impact on staff: When a theft is detected, it can create doubt and suspicion among teams, leading to a less healthy and less productive work environment.
• Loss of sensitive data: Some stolen equipment, such as computers or business phones, may contain confidential data, endangering the security of the company and its clients.

The 6 Steps to Reduce Thefts and Losses

1. Implementing an Equipment Management System

✅ Inventory all equipment

List all equipment with details such as model, serial number, purchase date, and assignment.
Use software like GearTracker to centralize this information.

✅ Assign each piece of equipment to a responsible person

Each employee should be responsible for the equipment entrusted to them.
Have them sign a loan or usage document.

✅ Labeling and traceability

Use RFID, NFC, QR codes, or barcodes to identify each piece of equipment.
Ensure that every equipment movement is recorded.

For this, you have two alternatives:

Excel Management	Software Management
Can be done very quickly but requires regular updates	Automates equipment management and traceability
May be limited in functionality if you need to manage users and more than 100 pieces of equipment	Offers advanced features such as maintenance and inspection management
Can be shared on a local network or in the cloud	Allows precise control over equipment access
Example of an Excel file	Example of software

2. Physical Security of Equipment

✅ Access control

Limit access to sensitive areas using badges, secure keys, or biometric locks.
Ensure that only authorized personnel can enter areas where equipment is stored.

✅ Surveillance and security cameras

Install surveillance cameras in storage and usage areas.
Regularly review recordings.

✅ Secure storage for high-value equipment

Store expensive or sensitive equipment in locked cabinets or secured rooms.

3. Employee Awareness and Engagement

✅ Train employees on equipment management

Explain the importance of traceability and following procedures.
Raise awareness about the consequences of theft for the company and for themselves.
For example, you can ask your employees to declare equipment when it is taken to a worksite.

✅ Implement a reporting system

Encourage employees to report any anomalies or suspicious thefts.
Ensure anonymity in reporting to prevent retaliation.

4. Communication and Regular Reminders of the Issues

✅ Annual Employee Awareness

Take advantage of the annual inventory to remind employees of the importance of equipment management and the consequences of theft. Clearly explain the impact of losses on the company and working conditions for everyone. Present the measures implemented to prevent theft and hold teams accountable.

✅ Distribution of an Official Annual Communication

Send an email or post an internal memo reminding employees of the concrete consequences of theft and equipment loss. Encourage employees to report any suspicious behavior.

Here is an example of an awareness letter you can send to your employees:

Subject: Annual Inventory and Reminder of Equipment Management Rules
Dear Colleagues,  

As every year, we are conducting our equipment inventory to ensure proper tracking and condition.  

We also want to remind you that good equipment management is a collective responsibility. Unfortunately, this year, we have noticed unexplained disappearances of numerous pieces of equipment. These losses have serious consequences for the company and for each of us:  

- Additional costs to replace stolen or lost equipment.  
- Delays in production and reduced efficiency for all affected employees.  
- A climate of mistrust within teams, harming our work environment.  

We count on you to immediately report any missing or damaged equipment and to follow the procedures for equipment check-out and use.  

Important Reminder: Any suspicious disappearance or confirmed theft may result in disciplinary action, including termination for gross misconduct and legal proceedings.  

Thank you for your commitment and collaboration in preserving our resources.  

Best regards,  
[Name of the Manager]  
[Company Name]  

5. Strengthening Controls and Audits

✅ Conduct Regular Audits

Perform random inspections to check equipment presence. Use your equipment management software to identify anomalies.

✅ Verify Equipment Check-Outs and Returns

Ensure that every equipment check-out is documented and signed. Conduct random checks on returns.

6. Actions in Case of Theft

✅ Investigation and Cause Analysis

Check records (cameras, access logs, equipment tracking). Analyze whether the theft is opportunistic or organized.

✅ Sanctions and Corrective Measures

Apply internal sanctions according to company regulations. Strengthen security measures if necessary (adding cameras, changing access, etc.).

✅ Filing a Complaint if Necessary

If theft is confirmed, consider filing a complaint to deter recurrence.

Consequences for Those Who Commit Theft

In the United States, employee theft is considered gross misconduct and can lead to immediate termination without prior warnings. Such actions violate the trust integral to the employer-employee relationship.

Beyond employment consequences, criminal penalties for theft are significant. Under federal law, theft or embezzlement can result in fines and imprisonment, with penalties varying based on the value of stolen property and the offender’s role. Source : US Code

These cases underscore the serious legal ramifications of employee theft in the U.S., encompassing both employment termination and substantial criminal penalties.

It should be noted that each case is unique, and sanctions may vary depending on the specific circumstances of the situation.

A Software to Reduce Equipment Theft and Loss

You can create a free account on GearTracker to ensure equipment traceability and reduce theft.

Our software is used by associations, small businesses, and large industrial groups. They drastically reduce losses and theft since all equipment movements are tracked. You know who lost or stole an item and when.

Additionally, you can also manage maintenance and inspections of your equipment to ensure proper operation and the safety of your teams.

Create your account to try the free plan !