Low-cost Loss Prevention Tips and Suggestions

The retail industry loses an approximate $45 billion a year due to shoplifting, organized retail crime, merchant, and clerical errors. For the small retail owner, any loss due to shoplifting puts a financial strain on their ability to do business, hire more personnel or invest and grow their business.

The competition in every industry is brutal, and the retail industry is no different.  The online option the customer has of buying whatever they need or want with the click of a button is especially hard for a small retail owner.  Their inventory and profit margins they’re dealing with are nothing compared to the big-box chains’, and any loss they suffer is particularly painful for their profits.

There are many businesses that cannot afford to invest in new technology to deter or prevent shoplifting, and they are left with the option of losing more cash and inventory or close their doors permanently, all due to this crime. But, if they cannot invest in technology, and they cannot hire more personnel, what are some low-cost options they can implement in their store to deter or prevent shoplifting?

  1. Customer Service

One of the great assets these small retail stores have compared to the big chains or online stores is the customer service they can provide to their customers.  Providing the customer with a greeting when they walk into your store and offering them great customer service has shown to decrease shoplifting and increase customer satisfaction.

A satisfied customer is also more likely to promote your business.  In today’s social network platforms, a bad experience can potentially reach thousands of customers with disastrous backlash for you and your store, but a good experience can also do the same, it can reach many potential customers that want to do business with you.  Treat your customers as a business ambassador for your business, and you will see the results in your profits.

2. Inventory

Keeping a good inventory of what’s selling and the number of items you are missing-whether they were sold or stolen-from the shelves can help you keep an accurate count of the merchandise.

Do you know at a minute’s notice what inventory you have on hand? There are software solutions that help retailers keep track of such matters, and allows them to have reports daily and online to help them make adjustments, order more inventory if necessary, and know at a moment’s notice the state of their inventory.

3. Organization

The design, cleanliness and how well your product displays are kept are important in keeping shoplifting at a minimum.  Well lit aisles, merchandise displayed properly and organized can make the shelves look pretty and the items displayed can allow you and your employees to account for the merchandise with a quick look to the shelves.

4. Diligence

Your employees are your best bet to deter and prevent shoplifting.  Research has shown happy employees are the best asset your company has for success, and in this case to deter and prevent shoplifting.  Salaries are not the only incentive your employees look for when entering a new business, treating them with respect and allowing them the ability to prove and express themselves are key to the success of any business.

Shoplifting affects every citizen and every member of society. The way you respond to a shoplifting accident and the way you treat shoplifters reflect on how you conduct yourself and your business.


Is There A Real Difference: EAS Tags & Labels?

You think that you may be scoring a great deal on cheap, knock-off Electronic Article Surveillance (EAS) hard tags and labels, however, over time you find that you are missing shoplifters due to poor pick rates or hard tags that are easy to defeat. Why? To make real, quality EAS hard tags and labels it takes more effort and time. The materials and sophistication of the circuit is not something that can be easily done by a slave laborer in some dark factory in a third world nation. The labels we sell are all high-quality EAS labels and tags that are both Sensormatic and Checkpoint Systems compatible.

For example, we see hard tags that can be simply pried apart with a screwdriver. Or labels that fall off when the adhesive dries up. So what standards should you be applying to both EAS labels and hard tags?

LABELS:

  • High-quality labels have a high pick rate (sensitivity) at your EAS system. Our labels have some of the highest pick rates around.
  • Quality control is critical! Not every label manufactured meets the high standards that we set. That’s why Loss Prevention Systems’ labels that do not pass QC are marked. Those labels will probably work but we suggest that you do not use them. However, every roll of our labels has 2000+ labels. How do we do that? See the next point.
  • Better value! Because the QC mark does show up from time to time, we want to make sure that you get at least 2000 labels on a roll. To achieve that target we actually add approximately 2% more labels to each roll. It is rare to have 2% marked labels on a roll and so you end up with more good labels.
  • Aggressive adhesive! When you put our label on your merchandise, it is there to stay. After about an hour the adhesive sets up and that label is not going to fall off.
  • Variety! We stock many sizes and shapes labels that are Sensormatic or Checkpoint Systems compatible. One type of Checkpoint compatible RF label you should check out is our clear label. It can be applied directly over your merchandise barcode and your scanner can scan right through it. This helps disguise the label and it does not cover up vital information such as directions on your merchandise packaging.
  • Our labels will not reactivate after they have been deactivated! When you pass our label over a quality deactivation unit, it kills the label and the label stays dead. It will not reactivate after your customer leaves the Point-Of-Sale (POS) cash register and before your front door. Cheap labels can and will do this in many cases at an alarming rate. This causes an unnecessary alarm that you have to deal with, embarrassing your good customers.
  • Most of our labels are faced with Thermal Transfer (TT) paper. That means you can print on them with your TT printer which you use to print your store pricing labels. This also helps disguise the EAS label.

HARD TAGS:

  • Look at the seams of a hard tag. Are the seams welded together so that they are smooth and cannot be pried apart with a tool? Our hard tags have a tightly welded seam.
  • Snag clothing? Poorly made hard tags can have a rough seam that will snag your clothing merchandise.
  • Our hard tags come in a wide range of unique styles, sizes, and colors.
  • The clutch mechanism in our hard tags grabs the pin and does not let go easily. The best hard tag in the world is useless unless the tag can securely hold the pin.
  • We have some of the smallest hard tags on the market. They can not only be used for protecting many types of jewelry but can be used on any other product that you can clip it onto.

So don’t cut yourself short. You paid for and installed an EAS system; do not let your investment give you an inadequate return because you use cheap labels or tags. Interested in samples of Loss Prevention Systems’ labels and hard tags? Contact us for a free sample pack.


Make Inventory Preparation Fun For Everyone

     “It’s INVENTORY time let’s go have FUN!” There’s a phrase you will never hear. Let’s face it anyone who has been through an inventory knows that it is drudgery. Aside from the counting of merchandise, there is all the preparation that leads up to it. If done properly it is time-consuming and tedious. You and your team are standing on ladders looking on top of fixtures, digging through boxes, in cabinets, and behind fixtures for items that have been misplaced. There is also kneeling to look under gondola base decks, cashier stands or under soft drink coolers for that one little piece of merchandise that rolled under there months ago. Then there are the painstaking tasks that need to be completed such as going through merchandise to make sure everything is properly ticketed. Someone should be spending some time contacting vendors with cut-off dates for bringing in a new product or providing credits for merchandise they are removing. Store managers have to make sure all of the tasks are being planned out, assigning who will complete them and follow up on them. ALL of this is BEFORE inventory night even takes place. Oh did I mention you still have to keep your store operating while you get these projects done? No, it really is not a fun prospect and if your employees get grumpy or dirty and dusty while doing these things they may not be thorough in their assignments. Do your inventory overnight and employees get tired and frazzled and you could wind up having more shortage than you should. Finding methods to get your team on board and keeping them fired up requires making inventory fun.

     How do you make inventory fun and interesting for your employees? There is a variety of ideas store managers can introduce to make the process more engaging for their staff.

  • Almost every business has that one person who is creative and let’s face it super-energetic about fun activities. Find that person, make them your inventory “Fun Captain” and cut them loose. You may even give them a small budget to work with so it is more fun for them too and they feel empowered to make decisions. It will be a load off of your plate. Just be sure that there are brief status meetings you two hold so you can help keep things on track. Sometimes these folks can have grandiose ideas that can be tough to reign in if you don’t stay a little involved.
  • FOOD! Everyone loves food and it can pump up the mood of a team. If you have a “Fun Captain”, ask them to come up with a week of food ideas for each day of prep and inventory night. It doesn’t have to be fancy maybe “Doughnut Monday”, “Candy Corn Tuesday”, “Pretzel Wednesday” and so on, you get my drift. Inventory day should be a bit more special. I have seen everything from fruit, coffee, and soda brought in for energy overnights to sub sandwiches and chips. One place I worked for the store manager brought in breakfast foods at the start of the day and pizzas that afternoon. Be creative!
  • Music. I saw one store that did inventory overnight and since there were no customers they played upbeat music over the P.A. system. Someone from that store would occasionally get on the microphone or phone and pretend to be a DJ. It was lively, it didn’t cost anything and the “DJ” was entertaining and funny.
  • Hold contests. Who doesn’t enjoy being part of a contest? It may be giving a prize to the person who can find merchandise stuck in the oddest location. Maybe it is retail trivia questions focused on shortage and safety issues. A correct answer can be rewarded with a “fun-sized” candy bar. You can purchase those bags in any grocery store and if you sell them then requisition a bag.

There are other ideas you or your “Fun Captain” will come up with, the key is to make it enjoyable for your team. Remember, the more engaged your team is and the more they understand why they are preparing for inventory the better the overall results will be when shrinkage numbers come back.


Preventing Shoplifting The Right Way

The laws in the United States concerning shoplifting undergo changes that in some instances put the strain on the retailers and their profit margins.  The shoplifting law changes in 2014, in California, for example, let retailers in the state feel a sense of vulnerability and hopelessness.  They expressed concerns about the fact that the laws allowed individuals to feel empowered to go into a store and shoplift without getting into too much trouble. 

Those losses are not only detrimental to the profit margins of the store but can mean an increase in the number of shoplifters that can enter the store feeling embolden to steal. Such an increase comes with an increase in violence, and retailers are feeling the change. Proposition 47 passed in 2014 that reduce the penalties for many crimes, shoplifting included a law change that has left many retailers feeling vulnerable.

On the other hand, big retailers such as Wal-Mart, Bloomingdales, and Krogers are being sued for extorting customers.  They accuse customers of shoplifting and then charging them money for the “courtesy” of not calling the police. The customers are bullied into paying for an online class by a company called Corrective Education Company and then the company pays Wal-Mart, Bloomingdales, and Krogers a cut of what they are charging these accused customers.  The practice is insidious and wrong according to the legal company carrying the lawsuit, and customers and retailers have to be aware of this insidious and amoral practice.

Shoplifting is a crime, and retailers are arguably upset by the law changes that make it for them more difficult to do business. But, accusing customers that do not have the financial means to hire legal counsel is preying upon the poor and defenseless, and that is morally wrong.

Protecting a business from shoplifters is the responsibility of the owner and the management team, and no one understands the travail the loss prevention team goes through every day when the store opens its door for business. If, as a store owner, you are asking yourself what is a good solution for the prevention of shoplifting, we have to tell you, you have many.

But, one of the most effective solutions you have at your disposal for the prevention of shoplifting in your businesses is training your personnel and management team.  Research has shown time and again that having trained personnel in your store or business decreases your losses thus increasing your profits.


How Abused Return Policies Can Hamper Customer Relations

Having to balance a customer friendly environment that makes patrons feel like you want their business and keeping a structure in place that ensures the store is profitable can be difficult. This is especially true when it comes to customer returns. At times, return policies even seem to put store management and loss prevention teams at odds with each other. On one hand, stores are afraid that a strict return policy will turn off regular customers and result in a loss of business. On the other hand Loss Prevention teams in their efforts to…well…prevent losses have a tendency to want to tighten procedures on everything. There is an argument to be made for both sides but there may also be a happy middle ground where both can come to an agreement.

Customers can and do lose receipts and in many instances, this hinders the person’s ability to get a refund and in some stores, it may even prevent an exchange of merchandise. In some of these situations, the customer may only be seeking to exchange an item for a different size, color or design and yet the manager sticks to the policy regardless of circumstances. This hardline approach can and does anger many shoppers and it will result in lost business. Yes, the policy is in place and the intentions of it are good but the lack of flexibility in not permitting even an even exchange or a trade for a similar item can be a poor choice. A store will pay for that decision through the loss of future sales.

Many stores have gone to the extreme of allowing an exchange or return giving the shopper up to 365 days to make a return! In a cbsnews.com article, “15 Stores With The Best Return Policies”, by Maryalene LaPonsie, Nov. 22, 2017, they reference 15 stores that have some of the best (read easiest) return policies. The article points out that even among these stores a bit of tightening up on the policies had to be done due to return fraud and abuse. Still, consumers will find that even without receipts they can at least receive store credits towards future purchases. Not too bad for losing a receipt and keeping merchandise for a year.

From a Loss Prevention perspective, this seems far too excessive and an abuse of a retailer’s goodwill. Taking back a return that is a year old or even 90 days old means that item has dropped in value due to markdowns or because it is out of season and no one is going to purchase it. Loss Prevention departments are concerned with profitability just as are store managers but tend to see things in more immediate terms. Taking that winter coat back in July means that it is either going to take up valuable stockroom space or will have to be marked down. Is there some way to come to an understanding between Loss Prevention concerns and store manager concerns?

Shoplifters do abuse store return policies often on repeat occasions. A May 14, 2018 article by journaltimes.com staff, “Racine woman charged for Walmart thefts”, reported on a woman who was caught on camera entering a Walmart store, selecting an airbed and taking it to the return desk and receiving a gift card. She was caught on camera committing the same type of theft about three weeks later at the same store. The story reported that the suspect had a history of shoplifting in the county dating back to 1991. In a related story from Houstonherald.com, May 21, 2018, a woman entered a Walmart store and “placed several items into a cart including DVD’s, floor mats, jeans, household goods and groceries.” The story relates that she went to the service desk and made returns for items she hadn’t bought and was able to get about $64 cash. This offender also had a history of 10 prior theft convictions.

Store owners and Loss Prevention officials need to devise clear-cut policies that provide fair returns and refunds to honest customers while putting roadblocks in place for criminals. Once policies are hashed out and agreed upon, consistency in administering those policies is required. Deviating and making exceptions only opens up the door to return fraud and abuse and takes you back to square one and career shoplifters will continue to abuse your goodwill. 


A Checkpoint System Is Now More Important Than Ever

Shoplifters seem to be getting bolder than ever. Much of this is greed. Many people simply want stuff and have no moral compass. Others are emboldened by lax law enforcement or Politicians that pass laws that do little to protect you. Whatever the case be, it has a negative impact on Retailers. We are expected to open our stores, compete, pay employees, pay expenses, taxes…. And make a profit. Shoplifting theft is yet another pressure on us.

The key to stopping shoplifting is prevention! You have to keep the losses from occurring. Once the shoplifter has stolen merchandise, even if you catch them, you lose money in labor, unsellable merchandise, sales and the like. This is where a Checkpoint System shines. This is high-quality commercial grade equipment that works 24/7. However, like anything else, you must get as much value out of any equipment you have. A piece of equipment that can pull double and triple duty for the same investment brings a better return on investment. Consider what Loss Prevention Systems offers.

First, when our customers purchase a system from us, they get FREE anti-shoplifting training for the life of the system. This is live training by a Loss Prevention professional as often as you reasonably need it. I actually spend a fraction of that time on the Checkpoint System itself. Most of the time is spent teaching you and your staff how to detect and dissuade shoplifters from even entering your store. You can actually have fun with shoplifters. Drive them crazy and they will get frustrated and simply leave you alone.

Next, there is a whole world of new innovations in the Checkpoint Systems line. People/Customer counting is one. Your system can count customer traffic. You then receive a weekly report that details your traffic by the hour of the day, day or the week. This data can be merged into your sales data to give you a more complete picture. Customers use this data to help with decisions on staffing levels, open/close times and more. The system will also report on the Checkpoint System alarms. How and when they occur. This further feeds into your decisions about staffing levels. You may say that my cash register tells me traffic. Not so, as not every customer that comes into your store makes a purchase. Why is that? Possibly because you do not have enough staff on at the times when you really need it.

How about remote control of your Checkpoint System from your mobile device while inside your store? This feature notifies you of alarms, maintenance issues, and real-time stats. You can be in your office, stock room or anywhere in your store and the system will notify you of an alarm. Immediately. This also gives you control of the system itself. Checkpoints systems are already ECO-friendly in their power consumption. But you can set up a schedule that tells your system to power down during the hours you are closed. Over a year that money adds up.

Marketing? Our systems have AD Panel capability either built-in or as an add-on. The antennas are there at the front door anyway, why not have them greet your customers with signage that you can change out as often as you wish. Promote an item, a sale, a special or simply say “welcome”. Print whatever you want and slide it into the clear acrylic frame. Now you get double duty without taking up any more floor space.

How about control of items you do not want to leave the store under any circumstances? Key rings, customer hand baskets, notebooks, documents, tools, equipment or supplies. Simply put a tag or label on them.

Contact Loss Prevention Systems today and we will help set you on the path to higher profits!


May is the month to prepare for your summer sales season

March is known for coming in like a lion and going out like a lamb. April showers bring May flowers but what in the world does May bring? May ushers in the summer sales season! Spring is wrapping up and now is the time to be getting your store ready for all of the shoppers looking for the items that will make the long, warm days of June, July and August a memorable time. The big stores are rolling out grills, picnic wares and yard games.  They are loading up with tons of bathing suits, beach towels, sunscreens and sunglasses. The big boys appeal to all of the summer trends in almost every department. They are also preparing for criminal activity and preparing to prevent it.

     With the end of May families start to travel and take vacations, children and teens are out of school and so there is just more free time on people’s hands. No, I’m not advocating doing away with summer vacations from school (I remember my school days and my break times could never get here fast enough). The simple fact is that with more people coming and going into stores theft will increase as will sales. Big box retailers prepare for this influx of traffic. Store Managers are setting planograms and endcaps to encourage the sale of those items that are relevant to the tourist, vacationer and outdoor-minded families. Loss Prevention Managers are evaluating product placement and the appropriate retail anti-theft devices for the particular merchandise in question. They may also be reviewing camera coverage to ensure thieves will be discouraged from trying to steal. Electronic Article Surveillance Systems will be tested for functionality and that tagging standards are met. The small business retail owner could have to do such things on his/her own. If you are that owner you may not even think you have a store that lends itself to seasonal merchandise sales. Take a look again, you may have more items that can be season specific than you think. You may also be able to take advantage of Loss prevention measures you have not implemented yet.

     If a store specializes in jewelry sales it may not occur to an owner that there is a seasonal element to it. Jewelry would seem to be a year-round item to sell but think about your merchandise in terms of accessorizing summer dresses or casual watches for a man preparing to go on a trip. Someone on a cruise may need jewelry that will accentuate an evening dress for formal dinners. How about the small corner grocer? What kind of impact can summer have in that store? Think about the traditional things we do during the summer days. We load up coolers with soft drinks and beer. We have cookouts with hot dogs, burgers, marshmallows, buns, condiments etcetera. Put the dry goods at the front of the store in high traffic areas to impact customer interest. Running a hardware store means putting lawn and garden care tools and supplies in front of the customers. Maybe you carry drink coolers or gas containers for boaters. Product placement is key to reminding customers what they need for the season.

     As you begin strategizing about how the merchandise you carry can have a seasonal component you also want to think about whether those goods will be stolen. Retail merchandise anti-theft devices are available for nearly every single item that is sold. It is simply a matter of finding the correct tag or label for the item. If you are going to promote meat for summer cookouts you have to know that there are going to be shoplifters who will try to steal some of it. Using food-safe Checkpoint EAS labels will prevent pilferage while allowing you the freedom to fill your meat freezers with the items that will increase sales. Having a grill display may be an opportunity to use an Alpha Security cable lock to keep it from being rolled out the door. Condiments on that display can be protected with EAS soft tags.  An end cap with bathing suits near the front of the store will drive sales and theft but clothing security tags will deter shoplifters. Jewelry store owners, you will be happy to know there are jewelry locks available to permit open-air display which can increase sales.

     Be ready for summer. Sales will sizzle as the days heat up if you use May to get your merchandise in front of the shoppers. Prepare displays that will mesmerize your customers and entice them to make purchases. In the process, don’t forget to use merchandise protection strategies. Increased foot traffic does not have to mean increased theft if you protect your products with the appropriate devices.


      

MAYDAY!  What are the steps you take in response to a crisis?

What do you do when a crisis occurs? Many people would say they take steps to address the crisis. Initially, that may sound like a good response unless you never planned on how you would react if that crisis were to take place. Think about it for a moment. If your business was on fire would you want firemen pulling up in their cars without the right gear or a plan of action of how they will take care of the fire? Sure it’s good to have the firemen there but if they don’t have the resources they need or a strategy on how to put out a house fire then the response is pointless. Police officers train on how to respond to a bank robbery in progress but the reality is many officers will never face that situation. According to a Cleveland Clinic Survey, 54% of Americans say they know CPR but the vast majority of us will never be called upon to use that training. So why do we do it? Why do we train for circumstances that are unlikely to ever confront us? We do it so we will be prepared for that one-in-a-million chance that we might have to apply that knowledge. President John F. Kennedy once said, “The time to repair the roof is when the sun is shining.” Attempting to play it by ear should an emergency happen is not a plan and may even make a problem worse.

    There are those who would choose to argue that it is not feasible to plan for every contingency or crisis. There is a hint of truth in that statement. I may not be able to plan for something I have no knowledge of. I could not plan for what to do for a patient losing blood pressure during a surgery. That is an extraordinary event that I would have no idea how to address. It is beyond the basic first aid training I had as a Boy Scout and refresher training I have had in my job. I think I can stop bleeding. I believe I can apply a tourniquet if it were absolutely necessary. Much more than that and I am way beyond my capabilities and the training I have received. You as a store manager would never be expected to stop a robber as he holds your business up at gunpoint. You CAN plan beforehand how your team should react and the steps they should take during and after the robbery. Pretending you and your staff will just deal with it should the situation arise is foolhardy. Plans that have been made and are reviewed on a regular basis help people stay calm if and when the crisis happens.

     When pilots call a Mayday, they may be nervous or even scared but it is a controlled fear. Fear is not controlling their behaviors and actions. Training takes over and they use their training to solve the problems. Sometimes the scenario has been practiced and other times it takes reasoning to sort out the situation. Emergencies rarely proceed in a textbook manner so they don’t lend themselves exactly to the plans that were made. Planning for contingencies makes a team ready for the eventuality a crisis does arise.

     So what is a manager to plan for? There are so many bad things that can happen it seems inconceivable to cover all of your bases, right? Wrong. Start with the basics looking at the most likely eventualities. Injuries will require first aid. Do you have a first aid kit? Who is trained to use it? Is there an emergency contact list? Can you arrange for certified first aid training for some or all of your employees or managers? Robberies could happen. What steps are you taking to minimize the chances of a robbery? Are employees trained to give a robber what they demand? Do they know not to touch anything and not to follow a robber out of the store? Do your managers know how to respond to weather emergencies? Does your store have a safe location in the event of a tornado? Do all of your employees know where that is?

     Plan for emergencies and review those plans with managers and employees. Be open to improving on plans. Don’t allow them to sit on a shelf and gather dust. Review emergency procedures on a regular basis and when you do have to make your own Mayday call you can be like that pilot who stays cool and calm and ensures the safety of all souls on board. The plan may be useless but the planning will be indispensable.


 

Cashiers Stealing?!?!? Yes They Do! From You Also!

Recently, I conducted an employee theft investigation for a client. I want to share some of the findings from that investigation in the hopes that you can use it to review your own potential for losses.

A Cashier had befriended a frequent customer. This Retailer sells merchandise to Contractors. The customer in question had an outstanding credit on their account of a few hundred dollars. As they went through the Point Of Sale (POS/cash register) the Cashier looked up and then applied the credit to the current sale. This is normal practice for this particular Retailer. The customer then said to the Cashier “if you have more of those, I will take them”. So the Cashier looked up some other credits, from other customers that were quite aged and never used. She found that she was able to reassign the credit to this customer and applied another credit to their current purchase.

As you can imagine this became a regular occurrence. However, no one caught on. This went on for some time. It was not discovered until a recent credit was used and raised a red flag. The CFO began an investigation and revealed that there had been thousands of dollars stolen this way. The POS activity is recorded with video cameras but the full extent could not be confirmed because the video recorder hard drive did not have the capacity for more than about three days of video.

I was asked to investigate. After review of the evidence and information, I interviewed the Cashier. She is a 21-year-old single mother of 3. She has no property, car or house. Her Mother brings her back and forth to work. An Aunt watches the children.

The first thing I do when I talk to an employee under investigation is what is called a Behavioral Analysis Interview (BAI). A BAI tells me two things: first, if the person is involved in the loss (not if they did it or not) and second what they do when they lie. Some refer to this as body language. It is a comparison of verbal and non-verbal responses to a structured set of questions. Once I have both of these pieces in place, I am in control of the conversation. If they lie to me I know it. I should add that I have conducted over 2300 of these interviews/interrogations.

I then switched to interrogation mode. An interrogation is a structured conversation. My voice stays level and calm. There are no threats, promises, abuse, bright lights, rubber hoses….. (no, you can’t use your antique thumb screw collection). After a while, she “broke” and confessed to what she did. She told me that she had been doing this for 10 months totaling over $11,000. The customer was paying her off outside of work. I then went through the evidence which up to this point is never shown to a subject. She confirmed what we had. She then incorporated her admissions into a written statement.

After reviewing the facts with the Senior Management of the company, I was instructed to contact the Police. Officers responded and took her into custody. She was charged with felonies both theft and embezzlement. Needless to say, she was terminated at that time. The company will decide at a later point whether to file a civil suit against her or not. You may be asking yourself right now “why would the company waste time/money filing a civil suit against someone that has no assets?” There are actually very good reasons to do this. In most cases, it is about ensuring that everyone else understands what will happen if someone steals from YOUR business.

You should ask these questions about your operation:

  • Does your POS system allow a Cashier to reassign customer credits without Manager approval and signature?
  • Do all customer returns require a Manager to review and sign off at the time of the return (customer & merchandise present)?
  • Are all credits, returns, voids, and no-sales reviewed at end of the day by a Manager?
  • Are any discrepancies reviewed with the Cashier that day or the next day to gain an explanation? Is corrective action taken right away if the Cashier is not following policy/procedure?
  • Is someone else then reviewing what the store turned in? Managers can be involved in theft also.
  • How much video can your DVR hold? Hard drive space is cheap. You should have at least the last sixty to ninety days of activity. You do record Cashier activity….Right?
  • Do you REALLY know your employees? Does their lifestyle fit their circumstances? Do they live above their means? Are they struggling to survive? I teach this in my live Employee Theft Seminar (in-person or webinar).

Employee theft occurs every day. It happens at your business also, whether or not you see it is up to you. Don’t bury your head in the sand. Be proactive to PREVENT losses. If you need help, contact us. Loss Prevention is what we specialize in!


Employee Theft Cases: Should You Prosecute Or Not?”

 You may be fortunate and have never had to address a problem of an employee stealing from your store. Be in business long enough and chances are you will have to confront the issue one day. As a small or medium-sized retail owner or manager you probably won’t have the benefit of a Loss Prevention Department to investigate suspected dishonest employees. That means it will be up to you or a company such as Loss prevention Systems Inc. which specializes in theft and shortage reduction to identify and catch the thief or thieves. Once you catch the employee who has chosen to steal from your business, be it cash or merchandise, what will you do with him or her?

It seems like it should be an easy question to answer for someone like myself who has spent many years in the Loss Prevention field catching criminals like this. The reality is it is not such a cut and dry question for many people. There are pros and cons as to whether a dishonest employee should be prosecuted when caught. This article is meant to give you the perspective from both sides so that you will be prepared to make an informed decision should the situation ever arise for you.

The pro’s for prosecuting a dishonest employee who has been caught stealing:

  • A clear message is sent to the employee and anyone working in your store that dishonest activity will not be tolerated.
  • It can serve as a deterrent to other employees who may otherwise consider stealing from your store.
  • An employee who is prosecuted and found to be guilty will have a criminal record. If this person attempts to work for any company that conducts pre-employment background checks it is likely their record will be found. It prevents the person from perpetrating crimes against other retailers.
  • A court can order restitution to be paid back to the store. This is not just the amount that was stolen but often includes additional money for the time and effort required of the victim to resolve the issue.

As you can see the list is not extremely long but it does serve practical purposes. But what about the other side of this dilemma?

There is a case that can be made for not terminating an employee who has stolen from their employer. These cons may be something you have not previously considered:

  • The most compelling reason not to prosecute a worker who has been caught stealing is that it does mean they will have a criminal record and this has a direct impact on their ability to gain employment. If you send someone to jail and they struggle to find a new job afterward you may not receive restitution even if the court ordered.
  • The expense associated with prosecuting a case. Having an employee charged with theft means the store owner or manager will have to appear in court to testify against the former worker. There is also the chance that a lawyer for the defendant could request a continuance and then you have to return to court at a later date. Some employers would prefer not having to go through all of the steps required by the judicial system.
  • You may be able to get a promissory note from the person more easily if they know they will not be prosecuted (remember though if a promissory note or restitution is not ordered through a court you may still not see any money).
  • Extenuating circumstances. You may know of recent hardships this employee started going through or have compassion for them because they are a single parent trying to raise their child. In certain instances, the employee has also been a long-time friend or family member.

The decision of whether or not to prosecute an employee you have caught stealing is entirely up to you. There is no right or wrong choice since there are legitimate points of view on both sides of the argument.

A final thought on the subject. If you find you are wavering on the issue of prosecution talk to the prosecutor’s office for your area. You may find that there is a way to prosecute a case and the person can be offered a way to clear their record so they can still seek employment. In some instances, there is something called pre-trial intervention (or an equivalent).  In these cases, a first-time offender pleads guilty and is offered classes and community service. Once complete their record is expunged so that a background check will not find a record. Failure to complete the requirements and the record stays. It is a good alternative to address both sides of the issue.