Tech That Combats Employee Fraud

Tools that monitor Web use and computer keystrokes can help companies cut down on worker malfeasance but can't catch every would-be crook

Thomas Vanderbilt Communications employees like to kid each other that they're being watched by Big Brother. But the software used by their employer to monitor their computer use is no joke. The Atlanta marketing and advertising company makes no secret that it's keeping tabs on every Web site they visit, every keystroke they tap, every instant message they send—even the contents of the messages on their personal Hotmail or Gmail accounts. "I don't feel like I'm spying on my employees," says Thomas Vanderbilt, president and chief creative officer of the firm, whose past and current clients include high-profile brands such as Coca-Cola (KO) and Starbucks (SBUX).

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