Information You Need to Know About Pre-employment Screening

July 6, 2015 by Leave a Comment

shoplifting4

Many employers required drug testing for their employees before they are hired, but the pre-employment screening does not necessarily stop there.  Background checks for possible hires are sometimes a necessity, specially if you are in the retail industry where the smallest profit margin can make a big difference.  What do you need to know before hiring a new employee? Are there any issues that are unlawful for you to pry into?

Follow the links for more information about this topic

Are you an employer who’s hiring? The importance of pre-employment background checks

if you’re an employer who’s hiring, you can’t afford the risks associated with not doing Pre-Employment Background Checks, advises Bay Area Investigations & Protection Services in Burlington, Ontario.

The need for employers to conduct pre-employment background checks for job applicants is now more important than ever before. Background checks can be critical to the safety and welfare of your business, your employees, and even third-parties such as suppliers. Anyone who is unfit to join your firm can jeopardize any part of your company, including its reputation, financial status, or the safety of others.

Background checks provide a company with the means to discover any false information or discrepancies that might not have appeared in a job application or through the company’s employment screening process. Keep in mind: your company could be held liable for property damage, theft, or any harm that comes to another due to one of your hires!

How could pre-employment test be discriminatory?

Q. I am looking to hire new employees. Some applicants who did not qualify for the open positions are now threatening to sue, claiming that my pre-employment tests are discriminatory. What should I know about pre-employment tests?

A. Title VII of the Civil Rights Act of 1964 prohibits discrimination in all terms and conditions of employment on the basis of race, color, religion, gender or national origin. Title VII allows for the use of professionally developed screening procedures and tests, as long as they are not intended or used to discriminate.

However, an employer may use a test that has an adverse impact on protected groups if it can show that the test is job-related and consistent with the employer’s business needs. To prove that a test is job-related, it must require test-takers to demonstrate the knowledge, skill or ability to successfully perform the duties of the job, or it must be tied to the tasks required of the position.

‘It’s legal, but …’ Most municipal employees can use marijuana as long as it doesn’t affect work

“It’s legal, but…”

That was the subject line for an email from the city of Tigard about recreational marijuana use by employees.

“The rules that apply to the work place have not changed,” wrote Dana Bennett, human resources director with the city. “As you already know, it is against policy to be at work under the influence of any controlled substance, whether alcohol, prescription medication or marijuana.”

Employees at metro-area municipalities received similar reminders this past week. Most appear to be on the same footing with their drug use policies: Employees can smoke on their own time, but they can’t come to work stoned.

“It’s no different than coming to work intoxicated from alcohol,” said Cornelius City Manager Rob Drake.

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Warning Signals of Theft by Outsiders

July 2, 2015 by Leave a Comment

theft (2)Last month I discussed the Warning Signals of Employee Theft. Employees account for an average of 45% of a Retailer’s losses. However, shoplifters and vendors account for another 35% on average.

As business owners we work hard to run our business. We deal with a number of liabilities every day and people who have never owned a business rarely understand that. We have to keep a number of balls rolling on the table at the same time: Sales, inventory, ordering, human resources, payroll, insurance and expenses just to name a few of the more common ones.

Contrary to current reports and opinion we see in the news more and more, we business owners are not the evil, money hording ogres that is sometimes portrayed. We work hard for our profits and many times we invest most of that back into the businesses.

So when someone steals from us regardless of the amount or type, it is a huge hit to our bottom line. What many Retailers do not understand is the impact. Theft of toilet paper or cleaning supplies from our restroom has the same impact as the theft of merchandise. It still costs us money and we have to replace it.

Many Retailers do not understand the true impact of shrink or loss. For example: If your store’s shrinkage this year is $100,000, that’s $273.97 in shrinkage every day.  Is that the total impact on the bottom line?

Consider this: For your organization to simply recover or break even on a $100,000 shrink or loss, you would have to sell an additional $13,698.50 every day!  ($273.97 divided by .02% profit margin) This is on top of your normal sales.      

Think about this…how many more items would you have to order, receive, count, mark, prepare paperwork for, stock, and finally sell just to produce these extra sales?

Add to this the fact that shrinkage really cannot be recovered. You then begin to understand why one-third of US business failures are blamed on theft.

The obvious solution is to prevent the theft, errors and abuse that cause loss in the first place. To that end here is a list of early warning signals of theft by shoplifters and outsiders to our business:

1. Unusually large or frequent refunds to a particular customer for returned merchandise.

2. Anonymous phone calls or letters concerning theft.

3. Unusually friendly relationships among employees and outsiders such as truck drivers, repairmen and trash collectors.

4. Frequent contact among employees and visitors (that do not appear to be customers), especially those visitors who carry shopping bags or other containers.

5. Contact by employees with gamblers, drug dealers, gang members, loan sharks, etc.

6. Many customers that always deal with one employee and refuse to buy from anyone else.

7. Your stock being sold in outlets, e-bay…. That never buy from the company.

8. Gifts or favors to accounts payable employees from suppliers or to accounts receivable employees from customers.

9. Reduced purchases by customers who deal closely with warehouse or shipping personnel.

10. Presence of outside personnel (telephone repair, building service, salesmen, etc.) in areas where they have no legitimate business, or in un-business like communication with employees.

11. Newly received items being sold in flea markets, e-bay, on-line….

12. Complaints received from other businesses or retailers.

13. Shoplifters are always blamed for the theft.

14. Gifts or favors from other retailers accepted by your employees.

Remember – It is of greater benefit to us to anticipate losses, procedural defects or lax enforcement of controls, then to concentrate only on resolving losses that should have never occurred.

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DETECTING FAKES – COUNTERFEIT MONEY

July 2, 2015 by Leave a Comment

Money1If you hadn’t noticed, every couple of years, the US Treasury completely redesigns the American currency. Just compare a few Ben Franklins from today and just a few years ago. They are radically different. Just in the last decade, the US has added different colors, designs, watermarks and other highly sophisticated elements into its currency to help reduce the prevalence of counterfeit dollars.

Just today, I was called by one of my stores about some funny money. It seems as if one of our new cashiers had accepted 5 crisp, new and ultimately fake, $100 bills. To say I was a bit frustrated was an understatement. For all the technology out there, it all still comes down to a cashier simply paying attention. You may say to yourself that it’s impossible for a fake bill to pass through your store. Maybe you think this because you have that fancy counterfeit detector pen. Would you be surprised if I told you that some of the better fakes can pass that test with flying colors? Yep, it’s true. I’ve personally seen some exceptionally made $20’s that, when marked, appear to be legit. So if the markers don’t work, how can you stop the madness?

Training. Training. More training. Your cashier is you last line of defense. They are taking in money all day long, so it’s only common sense that they be able to detect a fake quickly. I have friends in the banking industry and there are people out there that can spot a fake blind folded (based solely on the feel of the paper). So what’s your first step? The US Secret Service has a website dedicated to the detection of counterfeit currency. (http://www.secretservice.gov/know_your_money.shtml and http://www.newmoney.gov/). I constantly reference these resources when I’m conducting new store training, or manager training in my stores. You can’t get any better training material out there and the best part is that it’s all free!

Just as any other fraud scheme, the fraudsters will compete with new technology to defeat the controls and new controls will be implemented to fight the fraudsters. Counterfeiting is no different and as technology improves, you can bet that our dollars will get smarter. By staying on top of the latest changes and trends though, you can do your part to save your business the embarrassment of accepting phony tender.

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TIPS FOR PRE-EMPLOYMENT SCREENINGS

July 2, 2015 by Leave a Comment

image3-NEOBIZMAGDid you know that turnover and shrink play hand in hand? Stores that have less turnover, generally speaking, have lower shrink than their counterparts with higher turnover. So what can you do as managers and owners to reduce turnover? There are the standard answers you can easily find like “improve morale,” or “offer a generous salary and benefits package”. Reducing turnover starts with hiring the best candidate for the job. That starts with a solid hiring process.

I can’t begin to tell you just how many times I’ve cringed at the way I’ve seen managers’ interview candidates. They range from the “cookie-cutter” manager who simply asks the questions on the interview guide, to the manager who does all the talking. (Seriously, I’ve been in the office for several of these types. The manager literally will talk for 15 minutes and without so much as peep from the candidate, offer a job). Someone has to train the manager on proper hiring techniques, for starters. This protects you legally (there are some questions you can’t ask)! And it helps shield you from a bad apple (employees never steal from their employer, right)? Here’s a few suggestions of what your managers should be asking.

Can you tell me a little about your work ethic and how it separates you from other candidates?

If your candidate doesn’t know what work ethic is, then chances are, they are not the candidate for you. Take this time to listen to what they are saying. Anyone can show up to work on time and coast through the day. It’s hard to find someone with a strong work ethic these days. It’s not something that can be learned in school.

If hired, how would you sell yourself to the rest of the team?

How will your candidate establish credibility in your organization? Will then lead with an iron fist, or will they be a true leader and gain the respect of the rank and file?

What do you think is worse; a cashier who steals $20k to support her mother’s cancer treatment, or an electronics associate stealing computers to fuel a drug addiction?

Does your candidate possess a bit of empathy? While both scenarios illustrate internal theft, the first can be reasoned some (a little). It’s good to see what your candidate says about employee theft in a general sense here as well. The last thing you want is to hire someone that will steal from you.

How important is confidentiality?

This is a very important question, especially if you are hiring a supervisor, or a manager. Not only are we talking about keeping employee issues confidential, but also your company sales figures, market position and other proprietary information. A good candidate will understand just how important staying tight-lipped is to your business.

Can you tell me about your greatest failure?

This is my personal favorite. I close out every interview with this question. I need to see that my candidate is human. Nobody is perfect and everyone will make mistakes. Find out the biggest mistake your candidate made and then how they reacted to it and moved forward. You’ll be surprised at what you may hear with this one.

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Shoplifting and Employee Theft Report

June 11, 2015 by Leave a Comment

Shoplifting is a crime.  Policymakers, local law enforcement, private retail security, and consumers know that.  Stores acrshoplifting2oss the nation display signs warning the would be shoplifters of the intent to prosecute them if they shoplift. Shoplifting and employee theft cost retailers billions of dollars every year, but the problem persists, and in some communities shoplifting incidents have increased.  So, what can you as a retailer or small business owner do about it?  Is more security the answer? Are more security systems in place the answer? A better trained management team in your store the solution?  Retailers and local law enforcements have team up in states to combat this crime, but  shoplifting and employee theft are problems that retailers will be facing for many more years.

27th Annual Retail Theft Survey Reports Over 1.2 Million Shoplifters and Dishonest Employees are Apprehended by Just 25 Large U.S. retailers in 2014

Wesley Chapel, FL – Over 1.2 million shoplifters and dishonest employees were apprehended in 2014 by just 25 large retailers who recovered over $225 million from these thieves, according to the 27th Annual Retail Theft Survey conducted by Jack L. Hayes International, the leading loss prevention and inventory shrinkage control consulting firm.

“Something has to change, as we continue to report increases in apprehensions and recovery dollars year after year. In 2014, the number of apprehensions and recovery dollars were up again for both shoplifters and dishonest employees. Shoplifting apprehensions rose 7.4%, while dishonest employee apprehensions rose 1.7%. The dollars recovered from apprehended shoplifters and dishonest employees also rose, 7.5% and 18.1% respectively”, said Mark R. Doyle, President of Jack L. Hayes International. “These increases, follow similar increases reported the previous three years!” Mr. Doyle added, “I believe the solution starts with education. Educating the public as to the severity of the theft problem and how it negatively effects them on a daily basis. Educating our elected officials as to the negative impact theft plays on our communities and economy. Also, we need to do a better job educating our school aged children to the consequences of theft and the seriousness of the problem.”

6 Top Items Stolen From Stores

At this point in time, we can all pretty much agree that stealing is wrong. We’ve all witnessed the random teenager swiping a candy bar from the local corner store, or perhaps even been a victim of theft on a grander scale. Theft is all around us even though the act has been vilified throughout history in the Code of Hammurabi, the Ten Commandments, and today, in modern laws.

But desperate times call for desperate measures, and in a turbulent economy, marred by long-term unemployment, drastic upticks in the cost of living, and levels of inequality not before seen in modern America, it’s only expected that some people will resort to theft to get what they want. As unfortunate as it is, people stealing out of desperation, or straight malice or selfishness, costs business owners billions annually. According to one study conducted by Centre College professor David Andersen in 1999, the total aggregate of theft costs the economy more than $1.7 trillion every year. That number has likely gone way up over the past 15 years, giventhe rise of cyber crime.

Local retailers join to combat shoplifting

A recent shoplifting case at Walmart in Sahuarita pointed to possible connections to organized criminal activity that local authorities are now taking steps to combat.

The case involves a man and woman from Sonora, Mexico, suspected of stealing cartfuls of merchandise including boxes of diapers. The woman said they planned to sell them south of the border, according to a Sahuarita police report.

Cases like this are known as organized retail crime, or ORC, and nationwide it’s a $30 billion problem, said Pat Marshall of Walgreens. She was among five representatives from three retailers in Sahuarita and Green Valley attending a meeting Wednesday with Sahuarita police and a Pima County Sheriff’s detective.

They’re part of a new arm of the Arizona Organized Retail Crime Alliance (AzORCA).

Items most stolen
According to the National Retail Federation, these are the items most often stolen: Cigarettes, energy drinks,, high-end liquor, infant formula, allergy medicine, diabetic test strips, pain relievers, weight loss pills, high-end vacuums and other appliances, children’s electronic toys, laundry detergent, jeans, designer clothing and handbags, GPS devices, laptops/tablets, cameras/recorders, cell phones, teeth whitening strips, pregnancy tests and razors.
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How Does Your Store Prevent Shoplifting?

June 11, 2015 by Leave a Comment
Our company pays an outside vendor to come perform our annual inventories.  That keeps the checks and balances system in place, and helps keep the store management honest in their accountability of losses.  (Several instances of managers attempting to fraudulently pad their inventory numbers by filling empty boxes, or fudging pre-counted merchandise have been discovered, but that is a whole other blog for another day!)  We do what we can to Prevent Shoplifting, deter employee theft, and watch for any paperwork and vendor errors all year long, but the actual count of the store is crucial.  
We need this reporting because we have to know where we are losing merchandise in order to stop it in the future.  We are given a “shrink” budget because some loss is inevitable, but if we are getting hit and don’t even know it, then that budget won’t cut it.  The inventory crew found several empty packages during the count: a muscle stimulator, allergy medication, and an over the counter diet drug.  Those three items combined for about a $250 retail loss, and we didn’t even know they were missing. 
It’s not easy to Prevent Shoplifting.  It takes planning, execution, and in many cases Retail Anti-theft Devices.  From now on those electric muscle stimulator boxes will be protected with Alpha Spider Wraps.  I don’t want them locked up because they are truly an impulse item.  People browsing the pain relievers may decide that creams and pills aren’t enough anymore, so I want them to have the option of choosing that product instead.  But if I hide it behind the counter, even if I put a sign there explaining it’s new location, the chances I will sell any become basically zero.  The same goes for the large quantity count boxes of allergy medications.  I need those available on the shelf.  They obviously have a much higher retail than the 30-day boxes, but they also offer a significant convenience to the customers.  So the answer may be to encase these size boxes in Alpha Keepers. 
The idea is to Prevent Shoplifting, not to lose sales.  Sales fixes problems.  When you determine your “shrink”, it is the percentage of loss compared to your sales.  
There are so many choices when it comes to Retail Anti-theft Devices, you have to decide what works best for your merchandise.  If you specialize in cosmetics you will use much different product protection than a store that sells electronics.  Both types of stores have to Prevent Shoplifting or they cannot survive, but they have to know which items are the most vulnerable and which devices to use that will deter theft.  
I do not have the space to put everything up behind the checkout, nor do I ever want to.  Shoppers prefer to choose their items, pick them up, read the instructions, etc.  By utilizing the many tools from Alpha Technology, we are able to protect the items on the shelves while still giving the customers access to the items they came to buy.  
For more information contact us: 1.770.426.0547

Our company pays an outside vendor to come perform our annual inventories.  That keeps the checks and balances system in place, and helps keep the store management honest in their accountability of losses.  (Several instances of managers attempting to fraudulently pad their inventory numbers by filling empty boxes, or fudging pre-counted merchandise have been discovered, but that is a whole other blog for another day!)  We do what we can to Prevent Shoplifting, deter employee theft, and watch for any paperwork and vendor errors all year long, but the actual count of the store is crucial.  We need this reporting because we have to know where we are losing merchandise in order to stop it in the future.  We are given a “shrink” budget because some loss is inevitable, but if we are getting hit and don’t even know it, then that budget won’t cut it.  The inventory crew found several empty packages during the count: a muscle stimulator, allergy medication, and an over the counter diet drug.  Those three items combined for about a $250 retail loss, and we didn’t even know they were missing. 

It’s not easy to Prevent Shoplifting.  It takes planning, execution, and in many cases Retail Anti-theft Devices.  From now on those electric muscle stimulator boxes will be protected with Alpha Spider Wraps.  I don’t want them locked up because they are truly an impulse item.  People browsing the pain relievers may decide that creams and pills aren’t enough anymore, so I want them to have the option of choosing that product instead.  But if I hide it behind the counter, even if I put a sign there explaining it’s new location, the chances I will sell any become basically zero.  The same goes for the large quantity count boxes of allergy medications.  I need those available on the shelf.  They obviously have a much higher retail than the 30-day boxes, but they also offer a significant convenience to the customers.  So the answer may be to encase these size boxes in Alpha Keepers. 

The idea is to Prevent Shoplifting, not to lose sales.  Sales fixes problems.  When you determine your “shrink”, it is the percentage of loss compared to your sales.  

There are so many choices when it comes to Retail Anti-theft Devices, you have to decide what works best for your merchandise.  If you specialize in cosmetics you will use much different product protection than a store that sells electronics.  Both types of stores have to Prevent Shoplifting or they cannot survive, but they have to know which items are the most vulnerable and which devices to use that will deter theft.  

I do not have the space to put everything up behind the checkout, nor do I ever want to.  Shoppers prefer to choose their items, pick them up, read the instructions, etc.  By utilizing the many tools from Alpha Technology, we are able to protect the items on the shelves while still giving the customers access to the items they came to buy. 

For more information contact us at Preventshopliftingloss.com or call 1.770.426.0547

 

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Surveillance And Shoplifting

June 4, 2015 by Leave a Comment

shoplifting4Many retailers already spend millions of dollars to defend themselves against cyber attacks, and millions more to defend themselves against shoplifting and employee theft.  Security cameras are one of the many methods they use to prevent shoplifting, and in big retail stores a security guard is usually walking through the store, but relying in one method of security though is foolhardy, and eventually may prove to be more costly for the profits of your store.

Tips for enhancing the security of your surveillance systems

Nothing beats a security camera when it comes to keeping an eye on your home or your business. The newest surveillance technology can offer a greater range of vision and nearly endless recording durations, guaranteeing protection. Learning about security camera best practices can dissuade intruders from trespassing on your property or hacking your systems. Before buying a set of surveillance cameras, however, take a second to review the steps necessary for truly secure monitoring.

Password unprotected

Isn’t the whole point of a top-of-the-line security system that it’s for your eyes only? No one besides you, your family or a select group of coworkers should have access. Unfortunately, accidentally granting permission for anyone to peek through your cameras can be as easy as checking the Internet.

Is Petty Shoplifting Worth Hiring a Private Security Guard?

It’s obvious why a large store, full of hot-ticket items, needs round-the-clock, top-notch private security. But what about the local, corner store, whose average item’s price is $3.00, and its highest-priced item is $25? Wouldn’t the money spent on a private security guard offset any petty shoplifting?

This question is certainly worth asking, because after all, you would hire a private security guard because it would ultimately protect your assets, not increase your expenses without cost-benefit. Let’s look at the issues at hand, because hiring a private security guard isn’t just about keeping away petty thieves.  What else is it about?

1) Calculating accurately. Most retail stores calculate between 10-20% of their budget for shoplifting. That means up to 1/5 of the budget is dedicated toward theft alone!  Make sure that the cost of a private security guard is weighed against the shoplifting budget .  Even when strictly looking at the bottom line, your calculations could show that a private security guard reduces the need for the so-called “theft budget”.

Alleged shoplifter opens store with security cameras to stop shoplifters

WATCH ABOVE: Police bust an alleged shoplifting ring preying on high end retailers in the GTA. Catherine McDonald reports. 

TORONTO – York Regional Police have announced Tuesday the seizure of $1 million worth of stolen clothing after dismantling a Greater Toronto Area shoplifting ring.

Police say the investigation began in October 28, 2014 following a clothing store theft at Markville Mall in Markham.

Security video obtained at the scene helped police identify several suspects linked to similar crimes in the area.

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Warning Signals Of Employee Theft

May 29, 2015 by Leave a Comment

theft (2)As Business Owners we are “hit” with something that we did not or could not see coming. A piece of equipment breaks, a key employee is in an accident and gone for an extended period of time, etc.  Many times this also applies to employee theft: We simply did not see it coming.

However, there is a difference with employee theft and the first two examples. Employee theft is usually preceded by warning signals. Many Business Owners and Managers simply do not know what they are or do not see the forest for the trees.

When you look at this list, keep something in mind. One of these things, all by themselves probably mean nothing but in my 35 years of dealing personally with 2300+ employee theft investigations, I have found that most of the time two or more of these factors are present in enough time that a responsible party should have seen the warning signals. 

Personal behavior is the key area to watch:

1.Double talk or inconsistencies by an employee who is explaining discrepancies or “errors”.

2.Borrowing, particularly from loan sharks, but also habitual borrowing of any kind.

3.Symptoms of a drug user.

4.Admission of theft from prior employer.

5.Violent temper or other unpleasant behavior, which tends to discourage people from asking questions.

6.Expensive habits such as heavy drinking, drugs, extra-marital affairs.

7.Having more money or spending more than earnings could support:

–  Flashes big roll of money

–  Buys expensive items–jewelry, car, house, boat

–  Has expensive hobby

–  Always picks up check at restaurant

–  Dresses expensively

8.Disgruntled, dislikes boss or company and complains about being underpaid or overworked.

9.Heavy gambling on horses, cards, numbers, sports, etc.

10.Abnormal fear of, or antagonism toward, security or management personnel.

11.Possession of knife, gun or other weapon.

12.Terrorization of one employee by another.

13.Advocating violence as a way to resolve routine problems.

14.Never takes time off or vacation, comes in during vacation or day off.

15.Concealed family relationships among associates.

16.Chronic employee conversations that cease when management approaches.

17.Employees who never make purchases.

18.Employees who are “wary” of members of management.

19.Constant complainers.

Too often, signals pointing to internal theft, even when noticed, are mistakenly ascribed to chance, error, coincidence, or some other benign circumstance…and the signals are ignored.

Remember, a thief, like a magician, depends on you misinterpreting the obvious…or on his or her ability to confuse you.  Don’t be deceived, distracted or misled.

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Who is really running my store? A Strong Case for Employee Background Checks

May 29, 2015 by Leave a Comment

shoplifting4Coming from big box retail, I never realized just how uncommon employee background checks are in terms of smaller businesses, until I worked for one. While it’s standard practice for major retailers to run a pre-employment screening, there are plenty of stores and business out there that simply don’t. This could be a problem. It could be a problem for you, your business, your other employees and your customers. Knowing who you employ shouldn’t be a luxury. It is and should be, a necessity.

One of my first LP jobs was a district manager position for a very small chain of hardware stores. If I recall, they only have about 50 stores. When I first came on, they were building up their LP program and lacked several basic control measures in place. Think EAS, CCTV, exception based reporting and basic physical security measures. Heck, the stores weren’t even equipped with alarm panels. Part of my job was to help build their LP department to better assist the stores in becoming more profitable, assist in inventory reductions as well as limiting a very high turnover rate. After my first couple of weeks, it was clear that in order to help all of those categories, store managers needed to make better hiring decisions and that all starts with a thorough background check. 

It didn’t take much convincing and the company eventually found a company to process the screenings for us for a very competitive rate. Part of our new policy was to run the background checks on all of our current store managers. What we found was very disturbing. Out of 50 store managers, nearly 20 of them had extensive criminal records. Records that including prison time, drug and weapons charges, assaults, counterfeiting, forgery, fraud and even murder. These were our store managers! Not surprising, these 20 or so managers all had some of the worst performing stores. Literally, every one of those stores had shrink, turnover and moral issues. Coincidence? I think not. 

It took almost two years to fully implement and turnover some of those managers, but eventually the company was able to start with a clean slate. Now, every employee, prior to being offered a position with that company is required to submit to a background check. Anything other than simple misdemeanor traffic violations results in a disqualification of employment. I can tell you that those stores operate more efficiently, there is less shrink and turnover and employee morale high. If your company is not reviewing the backgrounds of your employees, ask yourself, “Who is really running my store?”

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Shoplifting and the Law

May 18, 2015 by Leave a Comment

theft (3)

Some have called shoplifting the silent crime that is plaguing the US. Shoplifting for some people is considered their full time job, and retail organized crime is abundant in this country.  Shoplifting affects small business owners tremendously and  the retail industry as a whole lose millions of dollars yearly passing the loss to the consumer and therefore affecting you financially.

Shoplifting is a serious crime ,and some states are taking strong measures to make sure the penalties applied to the shoplifter are harsh. To read more follow the links below.

Retail merchants fear theft bill will increase crime

HONOLULU (HawaiiNewsNow) –

Retail Merchants of Hawaii president Sheri Sakamoto said a bill to raise the threshold for felony theft from $300 to $750 will encourage shoplifters to steal more.

“It will really affect retailers specifically. They now can steal up to $749.99 and have less consequences to their crime,” she said

Rep. Karl Rhoads is chairman of the House Judiciary committee. He said the bill targets agricultural theft, and shoplifting is considered separate but prosecutors do have leeway. “Even if the Governor signs this bill it’s still a crime to steal amounts between $300 and $750, it’s just the penalty is not as high,” he said.

Theft is a Class C felony, punishable by up to five years in prison. Advocates for raising the dollar threshold say $300 is way too low, and it costs taxpayers about $49,000 a year to incarcerate an offender. “So when we’re talking about property crime that’s under $1,000 and we’re paying $134 a day, you’ve got to start looking at that and saying, That really doesn’t pencil out,” Community Alliance on Prisons advocate Kat Brady said.

Shoplifting gangs operating on ‘industrial scale’

PROSECUTORS have vowed to smash serious organised crime groups who are using “steal to order” shoplifting to fund their illegal activities.

The Crown Office said shoplifting was happening on an “industrial scale”, with some groups travelling from overseas to target Scottish retailers.

More than 200 people have now been identified as being involved in what prosecutors called “professional shoplifting”.

The details emerged as the Crown Office published figures showing £8.6 million has been seized in 2014/15 under the Proceeds of Crime Act (Poca).
The money includes assets seized from the gangs, as well as from brothel keepers, money launderers, and drug dealers.

Solicitor General Lesley Thomson said specialist prosecutors had worked closely with a dedicated police inquiry team during the past year to dismantle shoplifting groups, who specialise in targeting expensive clothing and designer handbags.

Battling The $36 Billion U.S. Problem Of Retail Shrinkage Losses

The financial cost of retail shrinkage is huge. The latest Annual Shrink Report issued by Dr. Richard Hollinger and Dr. Read Hayes at the University of Florida puts the total at $36 billion annually.

Shrinkage has several causes: customers shoplifting , employee theft, supplier fraud and administrative errors.

Frequent inventories and accounting audits counts can catch administrative errors and supplier fraud. But stopping shrinkage caused by theft is a larger undertaking.

“There are two kinds of thieves,”says Keith Aubele, CPP, president and CEO of the Bentonville, Ark.-based Retail Loss Prevention Group. “First, there is the opportunistic non-pro. Second, there are professionals working in Organized Retail Crime Syndicates (ORCS) — vast organizations that buy stolen goods from professional thieves for pennies on the dollar and then repackage and resell the goods to mom-and-pop stores, back into the retail pipeline, internationally — through any of a number of markets for stolen goods.

“Employees are the front line of defense — as well as the most economical defense — against shrinkage losses.”

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