Shoplifting Penalties, Preventing shoplifting, and Background Screening

How was 2016 for you?  Was it a winning year or one full of loses?  Were the personnel helping you during the holidays everything you expected?  Many businesses forgo the employee screening process due to the cost associated with it, not knowing the cost is only a fraction of what a bad employee would cost them in a very short period of time.  Read more by following the links below.


Changes in Shoplifting Penalties Make It Tougher for Retailers

Retail shoplifting penalties are undergoing changes. They aren’t all good.

Most readers of the LPM Insider are probably pretty familiar with shoplifting, its definition, its negative impact on retail operations and profitability and the shoplifting penalties for their state. It would be a lengthy process to learn the laws of every state and their shoplifting penalties because of the vast differences and constant change. Shoplifting laws have changed significantly in recent years—but rarely to the benefit of the retail industry.

Shoplifting and petty theft are criminal offenses that are frequently thought of as interchangeable, as they share common elements. Each crime requires the perpetrator to take something valued at or below a certain dollar amount, with the intent to permanently keep it, usually constituting a misdemeanor crime. The taking of something valued over that predetermined amount (as described by law) constitutes grand theft, which is a felony. State laws vary on the cutoff between petty theft and grand theft, and the shoplifting penalties assigned to those crimes vary by the amount stolen and by state. But, in general, to qualify for petty or grand theft, certain criteria must apply:

  • The victim of the crime had a “possessory interest” in the stolen item
  • The property was “taken away”
  • The victim did not agree to the taking

The defendant intended to permanently deprive the victim of their interest in the property.


Businesses rally to prevent shoplifting

Tucson, AZ — Serial shoplifters cost business owners in Pima County $5.91 million a year. On Wednesday, the Pima County Attorney, law enforcement, and local retailers partnered together for the new “We Watch, We Prosecute” campaign to stop thieves.

2016 was the first year ever that 100% of retailers say they were victims of organized retail theft, according to a study by the National Retail Federation.

Police say 80% of organized shoplifters steal because of drug addiction.

The Tucson Metro Chamber brought together retailers, law enforcement and prosecutors to form the Coalition Against Retail Theft (CART).

CART’s “We Watch, We Prosecute” campaign will:

Educate retailers and consumers on protecting themselves from organized theft through workshops.

Increase tools for retailers to identify and help prosecute organized retail thieves by working more with law enforcement.

Resources like signs warning thieves of surveillance cameras to deter theft.


Background Screening As a Commitment to Public Safety

The need to hire the most qualified candidate has never been greater. Companies that utilize background screens demonstrate their commitment to ensuring safety.

The need to hire the most qualified candidate, and the inherent risk in hiring the wrong candidate, has never been greater.

What’s at stake

Workplace violence, unethical business practices and misleading résumés are on the rise. The costs of fraud, embezzlement, theft and violence are a multibillion-dollar drain on our economy, bleeding organizations both large and small.

Furthermore, negative publicity associated with negligent hiring — especially as the result of a less than thorough background check, or worse, no background check — can devastate the very foundation of a trusted organization. Now more than ever, companies should be using regulated, professional background screeners.

Less expensive than you think

The most common reason among employers for not conducting background screens is cost. That background screen cost, however, represents a fraction of the cost involved in turnover, termination, re-recruiting, re-hiring and re-training. And that’s best-case scenario for a bad hire.


 

Protecting Yourself After The Holidays

The busiest shopping season of the year is almost done.  The gains  and loses of the year will be accounted for, and if you had a good year, it will show on the gains column.  Preventing shoplifting or minimizing shrinkage in your store does not end at the end of the year.  Shoplifting is a continuos problem for retailers, and the loss prevention team in your store.  The beginning of the new year though, offers you a unique opportunity to start over, study the loss prevention team’s effort, and make the necessary changes for a better year.

Read the following articles for more about this and other stories.


Could Amazon Go Eliminate Shoplifters? Customers ‘Just Walk Out’

Amazon Go is a new idea in retailing, now being tested at a store in Seattle, that eliminates the need for customers to go through a checkout line. The so-called “just walk out” experience depends on “the world’s most advanced shopping technology.” Customers simply enter a retail store, choose the goods they want, and leave. The checkout process is automated: The selected goods are charged to the customer’s account automatically.

Solving Shoplifting

Most of the information I have read about the system emphasizes its benefits in terms of customer convenience. However, another huge benefit would be to essentially “solve” the problem of shoplifting. Anyone – criminal or not – who enters the store, takes items and leaves will be charged for the goods.

Shoplifting has been a huge and intractable cost for retailers for decades. Solving it is no small feat, and the potential money savings could help to pay for wider use of Amazon Go technology. After all, the high costs of the system are cited as one obstacle to wider implementation.

Amazon Go Smart Phone App

The Amazon Go system involves a smart phone app that identifies the customer as he or she walks into the store (presumably through a turnstile). In addition, there are computerized systems in place that automatically identify which customers pick up which items from the store shelves, and keep a running, real-time tally of who buys what. No need for check-out lines; it’s all automatic. Customers only need an Amazon account, a supported smartphone, and the free Amazon Go app.


Tips for avoiding holiday theft after the gifts are opened

Joplin Police officers say you can keep your holiday gifts from getting stolen by not putting those empty boxes in your trash, alerting people what you just opened. Instead, go to a dumpster and dispose your trash, especially those in bigger boxes like a TV or a laptop.
You can also use a generic-looking box or a black trash bag to hide your gift trash.

“Every day, citizens can be a target or a victim of identify theft or anything like that, so you want to do everything you can to prevent the prevent that likelihood that you become that target,” explained Sgt. Dan Haskins of the Joplin Police Department.


BBB: Ten consumer tips for the upcoming year

Better Business Bureau is proud of our mission: to be the leader in advancing market place trust. In order to fulfill that mission, every year BBB offers thousands of tips for consumers to help them find a business they can trust.

BBB helps people find and recommend business, brands and charities they can trust. Better Business Bureau serving Central, Coastal, Southwest Texas and the Permian Basin compiled the top 10 consumer tips to help you fight scammers, prevent identity theft and save money in 2017:

  • Do your research. Always check a business out with BBB before you buy. For any business, visit bbb.org to view their BBB Business Profile, which includes contact information, complaint details and customer reviews.
  • Protect your identity. Always shred paper documents that include sensitive financial data and dispose of computers, cell phones and digital data safely. Safely store all personal documents, such as your Social Security card. Pull your credit report at least once a year, and check your credit and debit card statements frequently.

Tips To Secure Your Home And Family

This magazine is dedicated to helping you, the business owner/manager secure your business from threats to your bottom line. However, since the holidays are over, I want to help you with some tips to secure your home and family. I live, eat and breathe this kind of stuff. It is another of my long term experiences.

We tend to look for solutions from technology but in many cases we need to get back to basics. Here are a few quick items to review:

Light-When someone is looking to do no good to your property, they feel more secure if it looks like no one is home. The key is to confuse them and make them feel unsure. Remember, most burglars are lazy. If they are not sure about your house, they will move on. So you should have at least two light timers (three is better) set up and running seven days a week. These should be in different areas of the home and should come on and off at different times. Use the random or security feature found on most timers. This will vary the on/off time every day just a little in case someone is watching the house for a pattern.

This also has another benefit. It is an elegant look for a home. It also is convenient. For example, if you have a small table lamp in your foyer or stairway, you can have that lamp come on in the evenings until past the time you go to bed normally. The light does not need to be really bright. Maybe just a 40 watt bulb. Or use an LED bulb in these lamps instead. Your energy consumption will be almost nothing in the overall picture.

Sound-You may want to hook a timer up to a TV or Radio. A TV’s changing screen/light and sound will cause someone that is outside your home and maybe close enough to hear to have pause. This works best if the window coverings are closed or it is on the second floor. You may not want this option on all the time but it is a great idea for when you are on vacation or gone for a few days.

Mail/Newspaper/Flyers/Trash cans left at the curb-NOTHING says “I am not home” like these accumulating. Have a neighbor pick them up or put them away DAILY.

Safe-Mount a small in-wall-safe in the master bedroom closet behind your hanging clothes and below shoulder level. You can pick up a good little safe for around $100. These safes are mounted between two studs. They only require that you cut the sheet rock (usually a paper template is supplied) and screw the side into the studs on both sides. This allows you to keep cash, jewelry and more, secured and very well hidden.

Water-This really does not have anything to do with security. But if you are going to be gone for a few days or more, shut off the water supply to all toilets, sinks, washing machines and outside faucets (if possible). The average washing machine hose has a life span of five years. You really do not want to come home to a flooded house and an astronomically high water bill.

Alarm Systems-On the higher tech side a basic home alarm system is a great investment. When you have a system, you should cover every outside door and the door from the garage to the inside of the house. Install several motion detectors in areas such as hallways. You do not need to overdo it. What you are trying to do is create a trap effect. The bad guy should not be able to move very far without tripping a motion detector.

Basic alarm monitoring for your home system should be no more than $19/month. If it is more, you should shop around.

I strongly suggest that you have your alarm control send its signals to the Central Station via cellular not over wired phone lines or the internet. Most troubles with an alarm system are usually as a result of wired phone line problems. Cellular (GSM) resolves most of that. Also there is no wire for the burglar to cut. There will be an added monthly cost for monitoring for GSM (cellular).

Newer alarm controls have the ability to be connected to your PC or hand held smart device. This can only happen if your alarm control is connected with GSM (cellular). This is a very nice feature. It allows you to do almost anything remotely that you can do at the alarm keypad in your home. Arm/disarm, bypass….. This feature will also add to your monthly cost.

Cameras-Several cameras mounted around the outside of your home give you the ability to check in via your PC or smart device at any time. This used to be costly with traditional CCTV systems. Now you can put up Wi-Fi cameras that have long life batteries by yourself for a very reasonable cost. Shop around for quality units. A few things to consider when purchasing:

  • Battery life should be measured in years. You do not want to be on a ladder any more than necessary.
  • Is there a battery low indicator that will be emailed to you? The last thing you need is a dead camera when you need it the most.
  • Get cameras that have Infra-Red (IR) illuminators. This allows you to see in total darkness.
  • Be realistic on what you want to see. No camera is as good as the human eye. Two cameras may be needed to see what you want to see in one area.

In An Economy Predicted To Improve Here Are Some Things You Can Anticipate

After a long and contested election cycle, a new president will be inaugurated and with this result, some experts are predicting the economy will begin to improve significantly.  If the rebound is as strong as these experts are predicting retailers will be one of the beneficiaries, with an increase in customers and sales.  Likewise there may also be more shoplifting activity that takes place.  An increase in sales would seem to make sense given that there would be more people with jobs and potentially more money in their pockets, but why would there be an increase in shoplifting?  There are a couple of possible explanations, for example during those periods when the economy is slumping retailers tend to order less merchandise.  The result is shelves may stay empty longer or there may be fewer high ticket goods available for criminals to steal.  Less product displayed can translate to less opportunity and opportunity is one of the necessities for a theft to take place.  There is also the chance that with fewer customers in a store, employees are more readily available to offer customer service to shoppers and this is certainly a deterrent to shoplifters.  One of the first recommendations I always make for improved shortage results is for a store to focus on customer service.

Along with increased sales and the potential for more shoplifting, what are some other things you can anticipate with an improving economy?  You may find you are in need of more employees to help in your store.  Cash stands that may not have been very active could start to see new life as lines begin to increase.  Customers don’t want to wait for service so it is important to have enough staff to meet the demand.  Sales floor coverage will likely be stretched thin again impacting shopper perception of wait time.  Hiring could be crucial and in an improved economy you could be fighting for talent.  Don’t settle on a warm body, ensure you conduct pre-employment screenings so you can be confident that the person you hire is the right fit for your team and has no hidden skeletons in the closet.

An improving economy means more transactions and that means cash registers have more money in them and credit card swipes.  Make sure credit cards are the only thing being swiped and then only during the customer transaction.  More cash in a register is a tempting target to an employee who may be experiencing a personal financial crisis.  Make sure your front end or cashier supervisors are doing random cash drops at the registers, taking most of the money and leaving enough in to continue ringing sales.  Watch for cashiers who may be tempted to swipe a credit card and forget to hand it back to the customer.  If you see credit cards lying beside a register, question where it came from and pick it up and retain it in a lost and found.

Anticipate the need to replenish shelves more quickly.  During slow economic times merchandise doesn’t always sell quickly and so filling empty spaces on shelves and fixtures may have been able to wait until the next truck load of freight arrived.  If sales improve as predicted it is important to have plans in place to address “holes” more quickly.  Prepare to monitor for out of stocks during the day and get it refilled from your stockroom quickly.  If you are selling a lot of vendor supplied product, such as soft drinks, bread, cereals and snacks, etc., partner with your vendor representatives to increase deliveries and representative visits.

If you require an increase in floor replenishment, don’t forget to protect product with retail anti-theft devices before it gets to the selling floor.  Remember I mentioned there could be increased shoplifting with an improving economy.  It is easy to overlook the protection of merchandise as it flows from the stockroom.  I should note that I would prefer to see merchandise protected as it arrives to the store, but some stores do wait until it gets sent to the sales-floor before applying Checkpoint tags and labels.

The potential for growth in sales is exciting for retailers.  Don’t miss the boat by not being prepared for it.  Have a plan to meet the needs of an expanding customer base. Be ready to fill your sales-floor and don’t forget to prevent shoplifting by protecting your merchandise before it gets to the floor.  Going green will take on a whole new meaning in the coming years!


     

     

     

Preventing Shoplifting This Holiday Season; Inform Your Employees

Many stores, public places, and government  buildings display firearms law posters on the wall where everyone that enters their place will undoubtedly see it.  Some retail stores display their shoplifting policy where customers can see it.  But, many of these places though, fail to educate their employees as to their store policy when stopping a shoplifter.  Who is responsible of making sure every single employee knows the policy of the store? When is this supposed to happen? At the time of hiring?  For many retail stores, preventing shoplifting begins by educating their employees about the policies and procedures they need to follow when stopping a shoplifter.

For more about this and other  stories, follow the links below.


Home Depot employees fired after following suspect

– Four former employees at a Home Depot in Florida were fired after they attempted to stop a shoplifter in November.

Jeffrey Miller, 59, George Ippolito, 56, Joe Spector, 29, and Jazmin Kelly, 27, all worked together at a Home Depot in Palm Coast, Florida. On November 19, the 4 employees attempted to track down a customer who appeared to be shoplifting at the store.

However the co-workers did not know that their act to prevent crime went against company policy.

The Home Depot released a statement in regards to the incident: “Pursuing shoplifters in the store or in the parking lot is extremely dangerous and risks the safety of everyone, which is why we only allow trained security personnel to do so. We’ve had instances of serious injury and even fatality in our stores. No amount of merchandise is worth risking the safety of others.”

The employees expressed shock by their termination as Fox 35’s Kelly Joyce reports from Flagler County in the video above.

The suspect has been identified as 22-year-old Brandon Charles Edward Mullins Lowe of Hastings, Florida who allegedly admitted to stealing close to $1,000 worth of tools from the store. Lowe was being held in the Flagler County Jail on grand theft charges.


Police: Shoplifting doubles near holidays

As shoppers hit area stores for the impending holidays, so will shoplifters, say area police.

“It probably doubles during the peak of the holiday shopping season,” said Logan Township Police Chief Tim Mercer, referring to the number of retail theft calls the township’s officers will handle.

Mercer said officers typically get one to two calls each week, and with the increase in retail thefts also comes increases in other crimes related to shopping, such as identity theft, where people are opening up credit cards in other people’s names, and thefts from vehicles.

Most of the incidents of retail theft and other thefts occur at two highly concentrated shopping areas — Logan Town Centre and the Logan Valley Mall, Mercer said.

Stores are reluctant to talk about shoplifting, either out of a fear of calling attention to their stores and becoming targets or because they don’t want to divulge exactly how they deal with retail thefts.

One store manager of a longtime township store, who spoke only if his name of business wasn’t published, said stores take two approaches to dealing with shoplifters — either they try to catch them or they try to prevent them from stealing in the first place.


Five Steps to Recruiting the Right Loss Prevention Professionals

The success of any organization is determined by the talent of its people. In his book Good to Great: Why Some Companies Make the Leap…and Others Don’t, Jim Collins put it this way: “People are not your most important asset. The right people are.”

Whether it’s a company, a loss prevention and safety department, or a sports team, the more talented people within the organization, the greater chance it has to succeed. Loading any organization with talented loss prevention professionals requires a comprehensive five-step people strategy.

Want an awesome LP career? Download this FREE Special ReportHow to Find the Best Loss Prevention Jobs and Build a Successful Loss Prevention Career.

Recruiting. The first component of this strategy is recruiting. It all starts with a sound recruiting strategy to ensure there is a sufficient pool of applicants.


 

How To stop A Shoplifter?

Police Departments across the nation are busy this holiday season launching operations aiming at catching shoplifters.  Serial shoplifters go from store to store stealing hundreds of dollars worth of merchandise from each store.  Police and retailers alike have been working together to stop this vicious and financially crippling crime.  Shoplifters are not necessarily from the area where they commit their crime, there are serial shoplifters that go from state to state, and from store to store, stealing as much as they can.  For a retailer, the hundreds of dollars stolen from their store is a financial burden, and jeopardizes their ability to stay open for business.

For more about this and other stories, follow the links below.


How local law enforcement are working to stop organized retail crime

BUFFALO, N.Y.–

Organized retail crime is rising across the country, according to the National Retail Federation. In Western New York, local law enforcement said they’re constantly working to stop it.

“They’ll steal goods and products from various stores, sometimes taking orders,” Officer Craig Johnson, field intelligence officer for the Amherst Police Department, said. Johnson said organized shoplifting rings operate locally and even statewide.

“[They’ll go] down the thru way through the major cities, Albany, Syracuse, Rochester, Buffalo, even to Erie, Pennsylvania,” he said. HE said the thieves use stolen ID’s and credit cards to rent cars. They’ll even sometimes steal a license plate from another car to put on their rental. Then they spend hours stealing from stores, including items like clothing, medication, baby formula and even appliances. They then move on to another city by the time law enforcement is notified.

“They could be from different states. They could be from downstate New York. It’s very hard to find out that information of who these people are,” Johnson said.


Serial Shoplifters Target Burlington Stores 

It was a busy day for Amanda Bean. First, she stole several hundred dollars’ worth of merchandise from a store that shares her surname — L.L.Bean. Burlington police cited her for retail theft and released her. Two hours later, Bean allegedly stole goods valued at several hundred dollars from the Skirackon Main Street. Bean was again charged with retail theft and let go.

Since that day in April, Bean, 33, of St. Albans, pleaded guilty to the L.L.Bean theft, but her stealing apparently hasn’t stopped. She has been arrested on similar charges twice — including on October 22, while she was serving a community-based furlough for the L.L.Bean theft. All told, Bean has been arrested more than 20 times and has at least nine retail theft convictions, along with convictions for other crimes.

Downtown merchants are frustrated with frequent fliers like Bean. While other crimes such as burglary are declining in Burlington, retail theft is escalating, police say. Between 2012 and 2015, annual retail theft calls to Burlington police increased from 341 to 423. This year, the trend continued. The number of calls between January and November 1, 2016, totaled 404, compared to 374 over the same time period last year.


‘Operation Blitz’ To Target Professional Shoplifters

MINNEAPOLIS (WCCO) — As we look to get started on our holidayshopping lists, police will be looking for professional shoplifters.

Beginning on Black Friday, more than 30 Twin Cities law enforcementagencies will launch “Operation Blitz.”

The first-of-its-kind partnership in the state will target organized retail theft and financial fraud.

Police showed WCCO how these professionals do their best to avoid detection.

Take what police say happened at a St. Paul CVS two weeks ago, when a man walked in with a gym bag and loaded it with cleaning supplies. He was out of the store in under 40 seconds.


 

Be an Effective Manger This Holiday Season – Prioritize Sleep

meetingpic.The holiday season is officially under way and your stress level is about to go into overload.  When we’re overly stressed bad things happen to us mentally, emotionally and physically: headaches, digestive issues, eating too much, concentration problems, decreased impulse control, increased emotional sensitivity, poor planning ability and sleep disturbances.

The goal for a lot of people in retail is to “just get through the holidays” with the least amount of difficulties and stress, which is a reasonable objective.  So, what can you do to achieve your objective?  The number 1 thing you can do for yourself and your employees (as well as family, customers and friends) is to prioritize sleep. 

Getting enough high quality sleep is a crucial biological need.  A short term sleep deprivation of just 2 weeks can lead to memory loss, inability to focus and poor decision making skills.  A long-term deficiency can cause an increased risk of heart disease, obesity and depression.

There are many things you can do to make a difference in the quality and quality of your sleep.  But, one of the biggest is to stop your harmful electronics’ habits — starting now to relieve holiday stress.  Poor management of electronic devices is one of the biggest problems people have in falling and staying asleep.

Our bodies produce melatonin at night to help us fall and stay asleep.  A cool, quiet and dark room triggers your body to release it.  The light and noise from computers, Kindles, TVs, phones and other devices interferes with this process. 

The guideline is — don’t use any device 1 hour before bedtime.  It gives the melatonin time to work by eliminating all the light, stimulation/aggravation and noise.  It’s estimated that people who leave on even 1 device get at least 30 minutes less sleep a night than those who turn them all off.  Also, they wake up more often and are more restless. 

It’s important to create a good sleep routine and getting control of your unhealthy electronics’ habit is a place to start.  In fact, it might be all you need to have increased energy, a better memory, improved physical well being, stronger coping skills and a calmer mood.

After all, your employees won’t care or remember what cookies you baked for the holiday party.  But, they will care and remember that you were short of temper and long on criticism because you stayed up too late searching on-line for the perfect recipe.


Nicole Abbott is a professional writer who’s had over 200 articles published.  She’s a business consultant and former psycho-therapist with over 20 years of experience in mental health, business and addiction.  She’s a coach, lecturer, trainer and facilitator.  She has conducted over 200 workshops, trainings, presentations, seminars and college classes. 

Shoplifting During The Holidays

womensAs a retailer, your holiday season has started.  During this time of year, retailers big and small profit from a big and busy holiday season.  With the honest shopper, this is a season that retailers look forward to.  It means more sales for the retailer, and hopefully more profits as well. For every retailer, preparing and training their loss prevention personnel during this holiday season is also paramount, it can mean thousands of dollars lost to shoplifting if personnel are not properly in place, or trained. Knowing what items are most likely to be stolen can help your loss prevention team take preventive measures to ensure they are not easily snatched.

For more about this and other topics, follow the links below.


10 Things Shoplifters Love to Steal During the Holidays

It’s a $6 billion problem for retailers.

Retailers like to call the holiday season the Super Bowl of shopping. Shoplifters feel the same way.

According to a recent forecast by Checkpoint Systems, shoplifting as a percentage of sales spikes during the holiday season as thieves (including many retail employees) gravitate to pricier items as more shoppers come into stores.

The holiday season, which kicked off last week, generates 34% of annual sales for retailers, but 37% of their annual “shrinkage,” which is inventory loss for whatever reason—from supply chain inefficiency to employee theft to shoplifting. The latter two account for the bulk of shrinkage.

Shoplifting is $6 billion problem for retailers during the holidays.

According to Ernie Deyle, author of the Checkpoint Systems report, shoplifters are more apt to rationalize their theft during the holiday season. “It’s much easier to do so when a child’s Christmas present is at stake rather than an extra bathing suit for the summer,” he wrote.


It was likely back in the teenage years and little more than a pen or something of similar value, but many people have shoplifted at least once in their life. It’s one of those crimes that, while far from victimless, is undertaken by a large swath of society because it’s seen as no big deal (which, of course it is for the shopkeeper) and can be done swiftly and spontaneously.

It’s also undertaken for various reasons, perhaps a mini act of rebellion against consumerism; or a product of self-assessed entitlement; sometimes it’s just for thrill-seeking; and for some it’s thought of as a desperate act of necessity. It’s also the subject of a new show from British artist Lucy Sparrow, a.k.a., the Queen of Felt,at London’s Lawrence Alkin Gallery. Known as Shoplifting, the show features some of the most frequently shop-stolen items in the UK, including luxury products like Chanel No. 5 perfume, Creme de la Mer moisturizer, a Chanel handbag, and a Fabergé egg—all of them crafted in felt and displayed behind glass cabinets, to entice but prevent would-be thieves.


How stores plan to fight organized retail crime during the holidays

With Halloween over, retailers are in full-fledged holiday season mode. Which means they’re gearing up for Black Friday, holiday staff schedules, stampedes of customers… and theft. That’s right — the holiday season might bring stores a nice sales bump, but it also brings an increase in shoplifting. And retailers are stepping up efforts to crack down on the crime.

We’re not just talking about customers stealing a pack gum in the checkout line. Loss prevention specialists have their eyes on a much bigger target.

Organized retail crime (ORC) is a strategic and highly sophisticated brand of shoplifting where a network of professional thieves work together to rip off retailers. According to a survey from the National Retail Federation (NRF), organized retail crime is on the rise, with 100% of retailers saying they have been a victim in the past 12 months. Furthermore, 83% said ORC activity had increased in the past year.


 

How The Changes To Shoplifting Laws Affect You

We have begun to see a breakdown in the protection we used to be able to depend on. Recent decisions in California and other areas are basically decriminalizing shoplifting.

These changes in the law by out of touch Legislatures are having a devastating impact on retailer’s and society as a whole. Law makers are not addressing the real problems, only the results. People are able to get away with crime and this will have a further reaching impact on future generations and our society as a whole. pic-1

But today it is causing shoplifting in those geographical areas to rise substantially, impacting the retailer’s bottom line and the consumer’s pocket book.

What are we to do? We can no longer depend on the criminal laws to protect us. The politicians have lost their nerve, their minds and the understanding on why they were elected. But the real problem is that the brave and highly skilled Law Enforcement Officers that are there to protect us all, are barely able to contain violent crime let alone shoplifting.  Budget cuts, Democrats, Republicans…… are all to blame.

But you have solutions.  The first is as professionals, we know that we can only depend on ourselves.  So let’s solve this like any other business problem we face on a daily basis. The real solution has three elements.  The good news is that you do have control of all three.

1. How vulnerable have you made yourself?  

pic-2Step back and take a hard look.  Or better yet ask someone you trust to do that. A friend, another business owner…… they really do not need to have any special skills. You should look at your store from the prospective of the shoplifter. If you were going to steal, how would you do it? Do you have dark areas, high shelving, hidden spots that would make the thief comfortable? Is your store unkempt, dirty and not stocked in an organized way? Shoplifters are attracted to these environments. If you are presenting that look, then the shoplifter probably knows you are not able to keep up or simply do not care. This will also breed more shoplifting as word gets around that YOUR STORE is an easy mark.

2. Equipmentpic-3

I am not going to hit this one hard. You know that we sell and install the finest Electronic Article Surveillance (EAS) equipment made worldwide. Checkpoint Systems must be part of your strategy. That is why you see it in almost every major retailer. 

3. Your Staff

pic-4Are they asleep at the switch? Do they care? Have you trained them how you want the shoplifting deterrence program in your store to work and what their roll in it is? This is not something you can put off. It’s like saving money in an account. You got to start. If you are one of Loss Prevention Systems Customers already, then you know this. That is why we conduct live, personalized shoplifting prevention and loss prevention training for our customers. We do this as reasonably often as you need it, free of charge.

These three elements put and keep YOU in control. But you have to start now before it gets worse. And if the trend continues, it will.


HOLIDAY SALES AND EMPLOYEE THEFT TRAILS

goodsThis is the best time for retailers. We make a good chunk of our profits during the last 3 months of our fiscal year. Walk into any major retailer right now and you’ll already see a litany of holiday themed gifts, home décor and all things red and green. We also tend to beef up our staff this time of year as well. Some of us hire part-time works, some may even add a full-time position or two and a great many of us will employ temporary workers. The threat of employee theft also peaks around this time as well.

I caught a local news story this evening regarding a local store’s employee theft problem. The owner had discovered that one of his part-time employees had been stealing thousands of dollars from him in the form of bogus cash refunds and missing cash sales. So much money was missing, the store was literally on the verge of shutting down. How scary is that thought? One employee had single-handedly brought this man’s business to the verge of collapse. Why? A gambling addiction. So, what can you do to avoid this happening to you? Let’s take a look at this particular fraud scheme, shall we?

Missing cash sales

A dishonest employee can do this in two ways. First, they could legitimately ring up a customer and pocket the cash. They could also fail to ring it through the point of sale and simply accept the exact change from the customer, which would also allow them to pocket the customer’s money, instead of it going into the drawer. So how do you prevent this? First, make sure to reconcile your daily sales with the cash in the drawer. In essence, your POS should be smart enough to tell you how much cash you SHOULD have in the drawer at the end of the night. You count the cash, and it should match up +/-a dollar or two, at most. My dad runs a restaurant with a 10 years old cash register and it has this ability. The only excuse for not doing this is laziness on the manager part. Never assume anything when it comes to your money!

Now, that dishonest employee can take it a step further and never record the sale in the register, just opting to take “exact change” from your customer. Granted, this is very hard to track. Even working for a multi-billion dollar a year corporation with a large LP department with endless resources at my disposal, I still don’t have a magic button that I can press that shows me this fraud. This is where you have to install cameras at your POS. If you think something is suspicious about your sales, or your employee, those cameras can make your case every single time.

Bogus refunds

If you allow refunds, you can open yourself up to “ghost refunds” by your cashiers. This is where the dishonest cashier can simply conduct “refunds” when no one is around, pocketing the cash. On paper, it looks completely legitimate. You know that every day, you generally process x number of refunds, so if the dishonest employee keeps the number of returns they do in line with what’s average, you’ll never suspect a thing. That is until you start realizing that your profits are a lot lower that what they should be. How do you stop it? If your register allows it, require a manger key/password for any return transaction. That way, you, or another manager, has to be involved at the point of sale for any refund. A dishonest employee will not try this route if they know you will scrutinize every refund by physically having to be present.

If your register isn’t that smart, but still allows a refund to be processed, have a policy that states that the cashier must always call a manger for approval. Even if you can’t physically prevent it with a password/key, if you have any refunds on the POS at the end of the night, you’ll be able to see them. If you have a refund where you weren’t called, you can always question the cashier, or look at the transaction on camera, provided you have some installed (which you should) to ensure it was legitimate.

This is just two of the ways that your employees could possibly steal cash from you; there are dozens. Like most LP practices, just a little due-diligence and some common-sense best practices can help save you money and stress if they are implemented. While this isn’t meant to be a comprehensive list, or training guide, it should give you a baseline of where to start, especially if loss prevention isn’t your strongest suit.