How to Catch Employees Stealing from the Cash Register — and Stop It for Good

No business owner wants to believe their own team might be stealing. Yet, cash register theft is one of the most common and costly forms of internal loss in retail and hospitality. Whether it's a cashier quietly skimming bills, voiding sales after the customer leaves, or abusing refunds, it can go unnoticed for months — and cost far more than the dollar amount stolen. This guide explains how to catch employees stealing from the cash register , how to prevent a cashier from stealing money , and the best tools and practices to protect your business. Why Cash Register Theft Happens Employee theft is both a behavioral and systems problem. Most people don't start a job intending to steal — but when opportunity, pressure, and rationalization collide, even a small gap in oversight can invite theft. The Association of Certified Fraud Examiners (ACFE) calls this the "fraud triangle" : Pressure: Financial hardship, addiction, or personal debt. Opportunity: Weak controls or lack of supervision. Rationalization: "I deserve this," or "the company won't miss it." Cash-heavy environments make opportunity hard to ignore. A 2022 National Retail Federation (NRF) survey found U.S. retailers lost $112.1 billion to shrink , with 29% of that caused by internal (employee) theft . The ACFE's 2024 Report to the Nations found a median occupational fraud loss of $145,000 , and most schemes last 12 months before being discovered . That means every month you don't detect the issue, the cost quietly multiplies. The Most Common Ways Cashiers Steal from the Register Understanding the patterns helps you spot the signs early. 1. Skimming The simplest and most common. A cashier collects cash but doesn't ring up the sale, then pockets the money. These usually happen during busy times when oversight is minimal. 2. Voids and Canceled Transactions A sale is rung up, the customer pays, then the cashier voids the transaction after the customer leaves, making the drawer "balance" but pocketing the cash. 3. Fake Refunds Refunds issued to a personal card, gift card, or cash drawer when no merchandise was actually returned. 4. Discount Abuse Unauthorized use of manager codes or discounts, often disguised as "loyalty" perks for friends — or for themselves. 5. "No-Sale" Drawer Opens Frequent drawer openings with no corresponding transaction. Sometimes used for legitimate reasons — but often a red flag for theft. 6. Over/Short Adjustments Some employees deliberately misreport overages or shortages to mask skimming over time. Warning Signs of a Cashier Stealing Money Here's what to watch for: Higher than average refunds or voids per shift Frequent cash drawer discrepancies or "shorts" Suspicious behavior — e.g., rushing customers, blocking camera view, avoiding receipt printing Sales recorded but no receipt issued Unusual "no-sale" openings logged in POS Increased comps or discounts late at night or right before close If you see these trends, it's time to look deeper — with data. How to Catch Employees Stealing from the Cash Register The goal isn't paranoia — it's prevention through visibility and data . Here's how to do it. 1. Use Exception-Based Reporting (EBR) EBR systems automatically flag suspicious transaction patterns: Refunds without receipts High void percentage by cashier No-sale frequency per shift Refunds issued outside normal hours Cash payments with no corresponding inventory reduction Retailers who use EBR catch internal theft faster and with lower total losses than those relying on manual checks. 2. Pair POS Data with Video Surveillance The single most effective method to catch a cashier stealing money from the register is linking POS data to camera footage. You can click on a suspicious transaction in your report and instantly view the video from that moment — transforming suspicion into proof. 3. Conduct Surprise Cash Counts Unannounced cash drawer audits during the shift (not just at close) are one of the strongest deterrents. The ACFE found that surprise audits reduce median fraud losses by nearly 50% . 4. Track Cash Over/Short by Employee Don't just track totals per day — track by employee, shift, and terminal. Over time, you'll see patterns that expose who consistently comes up short. 5. Implement Unique Login Credentials Never allow shared logins or PINs. When every transaction is tied to a unique user, accountability skyrockets — and theft drops. 6. Require Dual Control for Refunds and Voids Require a manager's code or second approval for all refunds or voids above a certain dollar amount. Prevent the same employee from both initiating and approving a refund. 7. Monitor No-Sale Activity Set your POS to flag no-sale activity. Investigate cashiers who exceed the average threshold for drawer openings without transactions. 8. Leverage Analytics Dashboards Build a dashboard showing refunds, voids, discounts, and no-sales by employee. Visualizing data makes anomalies jump out — and can quickly identify repeat offenders. 9. Install Survei