Employee Theft and Shrinking

It is not surprising that employee theft and shoplifting increases every year.  With online “chat rooms” where shoplifters share their “methods” and the many ways they can get away with shoplifting, it is not surprising the losses across the globe are reaching staggering amounts. 

In 2013, the losses due to shoplifting amounted close to $16 billion globally, a 34% increased over the previous year.  The National Retail Security Survey revealed that in 2015 retail lost an approximate $45 billion due to shrinking, up by more than a billion from the previous year.

What are the expectations for 2016, and 2017? What will the losses amount to this year?

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


Employee Theft on the Rise According to Latest Retail Survey

Major retailers lost over $44 billion in thefts by customers and employees according to Jack L. Hayes International’s annual Retail Theft Survey.

Wesley Chapel, Fla. — Jack L. Hayes International, a leading loss prevention and inventory shrinkage control consulting firm, has released its 29th Annual Retail Theft Survey.

According to the survey, 438,000 shoplifters and dishonest employees were apprehended in 2016 by 23 large retailers who were able to recover over $120 million from the thieves.

“In 2016, dishonest employee apprehensions increased almost 10%, with the dollars recovered from these dishonest employees up nearly the same amount (9.3%). While shoplifting apprehensions and the dollars recovered from these shoplifters decreased ever so slightly, 0.2% and 0.9% respectively”, says Mark R. Doyle, president of Jack L. Hayes International.

According to the survey, one out of every 27 employees was apprehended for theft from their employer in 2016. The total number, 53,786, is an almost 10% increase compared to last year.

Over $42 million was recovered from dishonest employees in 2016, up 9.3% from 2015.

Survey participants apprehended 384,296 shoplifters in 2016, a slight decrease of 0.2% from the prior year. The average shoplifting case value in 2016 was $203.18, a slight decrease from 2015 when the value was $204.57.


C-stores may suffer from a bundle of cash-related issues, but tech-driven solutions are on the way.

One of the show-stopping numbers from the musical “Cabaret” includes the famous refrain, “Money makes the world go ’round.”

But money also makes the world of convenience retailing complicated. And problems such as cash miscounts, sticky-fingered employees and lack of data around dollars can stop the show for eager-to-perform operators who have to devote valuable time and resources to solving these snags.

To help shine a spotlight on the currency concerns c-store retailers face, CSP and Technomic conducted their seventh-annual cash-management report, commissioned by FireKing Security Group (complete results below). Finalized in March, the study surveyed 175 convenience operators who make or influence choices related to cash flow, banking and cash management in their stores. Thirty-seven percent of respondents operate one store, while 63% operate two or more locations.

Results from this year’s study reveal big concerns—and opportunities—for retailers’ cash-handling practices.


The Amazon Approach to Groceries Won’t Replace Stores

It’s a model that could thrive in dense, affluent areas. Most areas are neither dense nor affluent.

For a certain kind of urban professional, Amazon and Whole Foods are brands that define the consumption of staple goods: the weekly trip to pick up cheese, produce, maybe some pasture-raised organic beef; and the nice UPS man dropping off everything else, from toilet paper to truffle oil. On Friday, those folks learned that they are facing a future of truly one-stop shopping: Amazon.com Inc. plans to acquire Whole Foods Market Inc. for $13.7 billion.

But what about the rest of America? Well, if you happen to work for rival grocery chains, the news is not good. Competitors from Costco to Kroger to Dollar General saw significant chunks knocked off their market capitalization. Other casualties may include Walmart, the $15-an-hour minimum wage (Amazon is aggressively experimenting with cashierless stores), and the rather unique corporate culture that drives Whole Foods.


 

Do You Know What a Shoplifter Looks Like?

 

  1.  A French Historian is accused of stealing American war heroes’ dog tags to sell on eBay. 
  2. Colorado publisher accused of stealing money from authors

  3.  Store clerk accused of stealing thousands in lottery tickets

The retail industry is not the only one dealing with theft in the United States.  The retail industry looses more than $35 million dollars  to shoplifting every day in the United States. But, theft does not seem to restrict itself to retailers, theft occurs in every place where the opportunity arises.  The shoplifter can be a member of a shoplifting ring, or a regular shopper who has a job, a family, or even financial stability.

There is not a profile of a typical shoplifter.  The shoplifter can be a government representative or a store clerk, a policeman or a French Historian, a shoplifter can be a member of your family or a neighbor.  Many of these people often times feel ashamed or are unable to talk about this issue with other people and are unable to seek help, but the problem does not go away, and everyone looses.

If you are in the retail industry and believe what a shoplifter looks like as they enter the store, then you have already lost against shoplifting. Training the management and employees of a store to combat shoplifting is an important aspect of any store that wants to be profitable.

Read more about this and other issues by clicking the links below.


Exactly What Is a Shoplifter and How Much Do You Know?

Industry veterans may find it odd to ask ‘What is a shoplifter?’ after years of experience. But it’s always good to revisit the fundamentals.

When asked “What is a shoplifter?”, most readers of the LPM Insider probably have a pretty good idea of how to respond. I do too, but it’s interesting what you learn (or re-learn) when you actually do some research on the subject. If you look up the definition of shoplifting, you will find different variations in wording. Some reference larceny, some concealment, and others talk about intent. But the basic definition boils down to this: shoplifting is the “theft of merchandise from a store or place of business.”

The terms “shoplifting” or “shoplifter” are not usually defined by law. The crime of shoplifting generally falls under the legal classification of larceny and can be a misdemeanor or felony, depending on the dollar amount stolen. State by state, larceny laws vary greatly.

For the average person, shoplifting is sometimes confused with burglary or robbery. However, all three are different. Burglary refers to unlawful entry into a building with the intent to commit a crime, especially theft. If a burglar is successful, they will not come in contact with another person.


Shoplifting girl sparks compassion from Atlanta police officer

Atlanta (CNN)In a rough part of this city’s northwest side, the call about a shoplifter at a discount store should have been straightforward.

For Officer Che Milton, it was the first call of his shift — on his fourth day on the job.
Inside the store, Milton met a sobbing 12-year-old named Heaven Staples.
“She’s crying, bawling. Tears everywhere,” Milton told CNN. “She was upset she was caught stealing.”
Heaven told him that she was stealing shoes because her 5-year-old sister needed them.
“I couldn’t put her in the system, being 12 years old, for stealing some $5 shoes,” Milton recalled. “I’d rather just take her home and see what’s going on.”
The ride was short. Heaven cried. Then, they walked in the door.
“That’s when I saw the conditions — how the conditions were in the house,” Milton said: five children and their big sister, Heaven, without much food or furniture.


 

Alpha High Theft Solutions Blending With The Checkpoint Label

As many of you know Alpha High Theft Solutions was acquired by Checkpoint Systems many years ago. Checkpoint has encouraged Alpha’s brand growth and innovation. Alpha has produced the best high theft solutions, hands down in the industry. Innovations like Spider Wrap, Keepers, Bottle Locks, Cable Locks, Shark Tags, specialized hard tags literally protect billions of retail products worldwide.

As the largest nationwide Checkpoint Dealer we have watched and even helped with the research and development of some of these products.

It comes as no surprise to Loss Prevention Systems and many of you, that the Alpha High Theft Solutions name is being blended into Checkpoint High Theft Solutions. From the inside, the accounting and management functions have been the same for some time. But this has been accomplished slowly and carefully over time. The Alpha DNA is still there, stronger than ever.

When we at Loss Prevention Systems met recently with Checkpoint High Theft Solutions, we clearly saw the Alpha DNA. In fact to us it seems that it is even stronger than ever. We were shown new products, some we cannot discuss yet, as they are still in development with R&D and will be real game changers. The scientists and product specialists at Checkpoint overwhelmed us with the new items they are working on.

These are concepts that are becoming reality other companies have never even thought of. The application of science is, well, amazing. As soon as they give us the green light we will begin rolling them out to you. Maybe even a few lucky LPSI Retailers will get to test and evaluate some of these new game changers.

Checkpoint has evolved into inventory control solutions not just shoplifting electronic article surveillance solutions. When we couple that with Loss Prevention Systems actual loss prevention experience in both the shoplifting and employee theft arenas, you have a powerful partner to help you achieve the profitability you want and deserve. Our real world live training is included on every system we sell, as often as you need it, for the life of your Checkpoint System, FREE of charge.

Loss Prevention Systems includes even more. We are there to help protect you from the bad guys. Shoplifters, employee theft, robbery, burglary, pre-employment investigations, pre-employment interviewing, vendor fraud are threats to your very livelihood. We have personally dealt with all of these for large and small companies alike. A single store owner can have the same loss prevention programs that the big box stores have with Loss Prevention Systems and Checkpoint Systems High Theft solutions.

But rest assured the Alpha brand is alive and well and living in Checkpoint High Theft Solutions. It courses through everything we do and stand ready to help you with. There are exciting times ahead for retail loss prevention and security so stay tuned for more information.  

And remember that if you hate shoplifters and theft as much as we at Loss Prevention Systems, please share this with your retail friends.


Too Small A Store For A Loss Prevention Department? Loss Prevention Systems Inc. Is The Solution To Your Dilemma

Shortage control and theft prevention for small retailers which have no Loss Prevention Associates in the store was the topic of a recent article in an online loss prevention magazine. The points were well made and much of it was directed at stores that may have district or regional Loss Prevention Managers. But the truth is there are many small, independent retailers with no affiliation to a larger company. How do these stores cope with reducing shrink and preventing theft? It could be a tough problem but Loss Prevention Systems Inc. (LPSI)has the solutions that can keep small stores keep shortage down and profits up.

     So what are the solutions for those smaller retailers and how can LPSI help?

  • LPSI offers business owners advice through the blog posts on its website. The blogs are written by professionals who have years of experience in retail management and retail Loss Prevention. They give helpful insights from their personal experiences and knowledge of how shortage occurs. These insights can often be applied to any retail environment from a local “Mom and Pop” shop to a big box retail store.
  • LPSI posts videos on YouTube. Bill Bregar, owner and President of LPSI regularly posts videos to the web site, sharing stories from his extensive Loss Prevention experiences and tying them in with tips and strategies business owners and managers can employ in their own buildings. The videos are short yet informative and interesting as Bill includes anecdotes from his time in the field.
  • LPSI’s Facebook account provides additional videos and information on merchandise protection tools like Checkpoint and Alpha security tags and electronic article surveillance towers.
  • Small business owners may not have all of the information they need on how to prevent theft from employees or from shoplifters. While they are knowledgeable on the aspects of ordering products, replenishing the stores, running point of sale terminals they may not be equipped or even aware of all the various methods that can impact shortage. LPSI offers training seminars for business owners and managers that will give them the knowledge and information they need to prevent shoplifting, dishonest employee activity, and fraud.  A store may not be able to afford its own Loss Prevention department but this does not prevent them from proactively deterring or stopping thieves. LPSI has provided training both nationally and internationally to give business owners the tools that will allow them to defeat thieves even without a Loss Prevention Department.
  • Were you aware that hiring the wrong people to work for you can lead to internal theft and fraud, poor employee morale or worse, they could be a legal liability? LPSI offers professional background check services. They can look at an applicant’s criminal history, driving record, verify academic records, check on prior addresses, and verify employment history. Will the employee be working around children or other employees? The background check services offered by LPSI can check on sex offender registries to make sure your other employees and customers are safe and secure. Our company can make sure your hiring practices are optimizing your investment in staffing your store(s).
  • Consider that retail anti-theft devices and EAS pedestals can significantly deter shoplifting crime and even internal theft. You might be thinking about investing in it but you’re not sure how much you should invest or what the impact of your investment will be? LPSI offers a Free ROI Calculator on its website. There is no obligation to use it but simply entering the amount of money you are thinking about investing in Checkpoint equipment and how much your annual sales are, you can get a quick estimate of what your savings from shortage reduction would be.

Shortage reduction and theft prevention does not necessarily require a Loss Prevention Department.

     By using all of the resources available through Loss Prevention Systems Inc. you can effectively reduce merchandise shortage. We can also assist you in making the right investments in merchandise protection that will best suit your store size and the type of merchandise you carry.  Spend some time reviewing the LPSI website and social media posts and see if WE can be meet your Loss Prevention needs.


What Are You Doing To Prevent Shoplifting In Your Store?

In some regions, police departments warn retail stores and home owners of an increase in shoplifting and burglaries during the summer months.  Many of the burglaries and shoplifting accidents committed during these months are from young adults that are out of school with nothing better to do.

The problem-although serious- is nothing compared to the thousands of dollars that are stolen by organized retail crime rings in some cities.  

People in an organized retail crime ring can enter a store and leave it within minutes with thousands of dollars in stolen merchandise. They are professionals and their goals is simple: Steal as much as you can in the least amount of time. 

Training to prevent this kind of shoplifting is paramount to the well being of your store.

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


Shoplifting plagues Portland retailers

SHOPLIFTING IS A CONSTANT PROBLEM FOR PORTLAND RETAILERS, BUT POLICE DON’T HAVE THE RESOURCES TO CRACK DOWN ON MANY OF THE THEFTS.


Rise in organized retail theft is costing you

RALEIGH, N.C. (WNCN) – They’re fast, they’re sneaky – and their crimes are impacting your wallet.

Organized retail thieves are costing retailers billions of dollars each year, which inevitably ends up costing you.

But it’s more than just shoplifting. Organized retail theft includes:

  • Receiving goods that are believed to be stolen, even if they’re not
  • Shoplifting goods ($200+ value) through an emergency exit door
  • Theft of infant formula more than $100
  • Credit card/gift card fraud

International Super-Heist Cost Retailers Billions Last Year

One woman in El Segundo stole $10,000 of clothes from a shop in about 20 minutes during the course of three visits.

Retailers ready to launch their new fashion lines can bet some of that apparel will be stolen the minute it hits their shelves, according to private investigators.

The products are being shoplifted, in some cases, thousands of dollars at a time, by thieves committing organized retail crime.

A private investigator, speaking to NBC4 on the condition of anonymity, helped detectives with the El Segundo police department, tie two Colombian nationals to an international theft ring.

The two were arrested after police discovered $67,000 worth of stolen merchandise in their Hawthorne apartment.


How To Prevent Shrinkage With Technology

It is true the retail industry losses are staggering.  Losses due to shoplifting and employee theft are a problem that seems to have no solution.  Small mom and pop stores close their stores for good because of the losses they encounter and cannot recover from.  Big national retail stores have the capability to withstand losses from shoplifting and employee theft that other smaller stores cannot.

New technologies have been a help for many of these giants in the prevention of shoplifting and employee theft. The new technology has helped these retail stores prevent the crime before it happens or when they are happening.  Two of these technologies are: Video analytics along with video cameras and Face recognition software. They have played an important role in shoplifting prevention in the retail industry.

For more about preventing shoplifting and employee theft


Here are a 20 ways to make more money and boost your profit margins by minimizing loss in your business: – Modest Money (press release) (blog)

There’s an old saying that “you have to spend money to make money,” but it’s also true that one of the best ways to make money is to avoid spending money in the wrong places. If your business is spending too much money on unnecessary business expenses – or worse, if your business is losing money due to theft by customers or employee fraud – you are letting good money go out the door. And this makes it harder for your business to be profitable because you have to work that much harder.

Here are a 20 ways to make more money and boost your profit margins by minimizing loss in your business:

  1. Reduce Administrative Errors: Many businesses make seemingly simple mistakes in their pricing, paperwork or bookkeeping that lead to big losses over time.
  2. Prevent Employee Theft: Employees stealing from their own companies is a major cause of “shrinkage” or business profit loss. According to RetailNext, employee theft makes up almost half of the $42 billion in retail shrinkage each year.

How to tackle employee theft with real-time inventory

Minna Nurmisalo, project & marketing manager at MariElla Labels, takes a look at how real-time inventory can help deter employee theft.

No retail business wants to believe that they might be subject to theft from their own employees. Unfortunately, it is a very real problem. It might be stealing items on their person, or exploiting employee discount privileges to significantly reduce the price – either way, employee theft can account for as much as 28% of unexplained inventory loss globally, according to the recent Global Theft Barometer Report.

In order to prevent it, it is first important for employers to be aware why employees might feel the temptation to steal – from financial pressures in their personal lives, to general disgruntlement with their employers.

But irrespective of the emotional reason that causes employees to consider stealing, it all boils down to something very simple: they think they can get away with it.


Beat The Shrink: How Inventory Management Can Help Reduce Shrinkage

Retailers ate losses of more than $45 billion thanks to shrinkage in 2015, a $1 billion jump from the 2014 total. If this trend continues, the 2016 figure could exceed $47 billion!

How can so much inventory just walk out the door? According to the National Retail Federation, there are five main ways for your supply to disappear.

Sometimes it doesn’t even make it to the store. Roughly seven percent of shrink comes from the vendors in the form of overcharges or undersupply. Small businesses can be especially vulnerable to this if they operate on more informal bases with their supply companies. Check your contracts and make sure expectations are clear.

Human errors count for another 16 percent. Maybe someone ordered too much product to move in a realistic timeframe. A stocker accidentally slapped the wrong price on an item and led to an impromptu sales event. It could be something as simple as poorly-inventoried stockrooms that harried employees tally by physical count and tally marks.

Other times, though, goods may get a helping hand out the door.

Shoplifting counts for 38 percent of loss. People may steal for personal use. They might need to make fast money from a resale. It could be nothing more than they steal because they can, but the end result remains the same: Lost revenue and unbalanced books.




 

The Habit of Shoplifting

The National Association for Shoplifting Prevention studies have shown that there is not a profile for a typical shoplifter.  Women and men shoplift as frequently, and the majority of the shoplifting is done by adults.  And although, shoplifting has been shown to start early in a person’s teenage years, as teenagers become adults, the tendency to shoplift stays with them.  Drugs, poverty, and mental illness have been factors for people who shoplift.  In other cases, the reasons are still unclear.  People from all walks of life shoplift.

Studies in the United Kingdom have shown that people who shoplift will do so again within the year.  That is the case in most developed countries.  Shoplifting can be a way of life for many of these people, and if retail stores across the globe do not find measures to mitigate the damage these shoplifters do, the profits these retail stores can count on at the end of their fiscal year diminish tremendously.

To learn more about this topic, follow the links below.


One in four criminals re-offend within a year

More than a quarter of offenders are re-convicted within a year, according to official statistics.

Figures from the Scottish Government show that in 2014-15, 28.2 per cent of the 43,634 people released from prison or given a non-custodial sentence such as a community payback order or fine had a further conviction within a year.

The overall re-conviction rate has fallen 0.3 per cent from 2013/14, continuing an 18-year downward trend.

But of those given a custodial sentence of six months or less, 57 per cent were re-convicted within a year and 39 per cent were back in prison 12 months later.

Offenders released from jail in 2014/15 had a higher re-conviction rate at 43.9 per cent than for any other type of sentence except drug treatment and testing orders.

Statisticians highlighted that offenders who receive short sentences typically commit “low level” crimes such as shoplifting, but often in higher volumes and are more likely to be re-convicted.

Sex offenders had the lowest re-conviction rate at 12.1 per cent, while people committing crimes of dishonesty such as theft or shoplifting had the highest out of the crime classifications at 42.5 per cent.

Justice Secretary Michael Matheson said the figures showed that community sentences, including community payback orders (CPOs) brought in to replace community service, were more effective at cutting re-offending than short jail terms.


Former State Rep. Hurley pleads guilty to three shoplifting incidents

ROGERSVILLE – Local businessman and former State Representative Bruce W. Hurley, 83, entered guilty pleas in Hawkins Co. Criminal Court on Friday, April 28, to three counts of theft of property valued at less than $500.

Court records indicate that Hurley, who pleaded guilty before Criminal Court Judge John F. Dugger, Jr., will serve no jail time as a result of his pleas of guilty to what amounts to three shoplifting charges.

Judge Dugger imposed a sentence of 11 months and 29 days, but ruled that all but 120 days of that sentence is to be served on probation. The remaining 120 days is to be served on community corrections (house arrest), court records indicate.

In addition to a $50 fine on each count, Hurley was ordered to pay $4.02 in restitution to Walmart, one of his two theft victims. The other theft victim was the Rogersville Food City supermarket. All three charges were brought against Hurley by the victims, according to a Rogersville Police Department spokesman.

Court records indicate that the thefts took place on Aug. 25, 2016; Sept. 29, 2016; and Nov. 16, 2016.


Have Fun With Shoplifters, Yeah Really!

Okay we know that shoplifters are one of the lowest forms of life. Stealing from people is not noble or right in any situation. I believe that shoplifters are a strong competitor for the oldest profession in the world. After all, I bet a cave man was able to steal a rock from another before prostitution even existed and politicians didn’t even exist yet. Even though some in Congress seem to have been around much too long.

So if we can’t get rid of them, we might as well have a little fun with them. In the process make them very frustrated and uncomfortable. All the while your staff is being entertained. This provides a great break to the normal retail grind for your folks, ultimately sends the shoplifter packing with an empty bag and the best part of all saves you money. And let’s not forget this sends a signal to the shoplifting community to go elsewhere and leave your store alone.

So what’s the secret????? Customer Service! Once you know how to spot a shoplifter customer service them to death, overtly and openly. If you don’t know how to spot shoplifters even before they steal, contact us, we can teach you how to do that.

You see the one thing that all shoplifters need is privacy or at least the perception of it. If you or your staff is customer servicing them, they can’t do the dirty deed and they get the message. Typically they simply go elsewhere and don’t bother you further.

Entertainment is great but try to avoid getting the popcorn and 64 ounce drink out and watching. That would just be rude.

CC Intro:

I bet you never thought that shoplifters could be a form of in-store entertainment did you? Why not! These bottom feeders are not exactly the sharpest tools in the shed so let’s drive them crazy and have some fun at the same time. That is what our Feature Article is all about this month. ENJOY!!!!


Theft And Fraud Can Bankrupt A Business; Contact Us For Training Seminars That Will Help You Reduce Shortage And Remain Profitable

 According to the Jack L. Hayes Annual Retail Theft Survey, released June 2016:

  • 1,170,056 shoplifters were apprehended in 2015 resulting in over $150 million recovered from apprehended shoplifters
  • 75,947 dishonest employees were apprehended in 2015 resulting in over $55 million in recoveries
  • One out of every 38 employees was apprehended for theft from their employers in 2015.

This survey was based on information from 25 large retail companies with 21,228 stores and over $700 billion in retail sales (2015). Combine this with information from the 2015 Global Retail Theft Barometer (GRTB) Report that placed shrinkage in North America at 1.27% or $36.79 billion dollars (pg. 50) and you have some scary statistical data if you are a small business owner. The 2015 GRTB also reported that shoplifting was the cause of 36% of retail shrink and dishonest employees were responsible for 45% of shortage (pg. 53). According to statisticbrain.com 37.5% of employees have stolen from their employer at least twice. The same website reports 33% of all business bankruptcies are the result of employee theft. THAT is a lot of theft! What is an employer supposed to do? If the 25 large companies surveyed by Jack L. Hayes are being impacted like this and they have access to Loss Prevention resources, how can a smaller retailer prevent this kind of theft? Is there a way for small to medium stores to address theft and fraud, reduce shrinkage and improve profitability?

     The answer to the question is yes, there is a way for small businesses to reduce shrinkage due to shoplifting and employee theft. Loss Prevention Systems, Inc. has training seminars available that will provide information on various forms of employee theft and the real impact they have on a business. The seminars don’t simply instruct on how the activity occurs but also on how it can be prevented. Additional seminars are available on shoplifting and the methods you can use to protect your merchandise and your profits. How do you detect shoplifters? Do they all act the same? Should you approach them and attempt to get your merchandise back? All of these questions will be answered by Bill Bregar, President of Loss Prevention Systems, Inc. 

     Bill’s extensive background in Law Enforcement and Loss Prevention gives him the expertise to ensure you and your staff receive solid training that can make an immediate impact on shortage reduction in your store(s). Bill’s career in investigations began when he served in the U.S. Army as a Military Policeman and in the U.S. Army Reserve as a Military Intelligence Officer. He worked for 2 years as a Police Officer for Central City Colorado. Bill has held positions of increasing responsibilities starting as a Security Manager for a grocery store chain, advancing to two different Regional Loss Prevention Manager positions, working as a Director of Loss Prevention for two different companies before becoming the President of Loss Prevention Systems, Inc. Bill’s professional competencies include being an “Expert Witness,” a Licensed Private Investigator in the State of Georgia and a Private Detective and Security Agency Training Instructor since 1998. Bill also holds a Bachelor of Science Degree in Criminal Justice and Criminology, Private Security Administration & Management from Metropolitan State College, Denver, Colorado. Finally, as someone who has conducted over 2300 employee theft investigations, Bill has the proven field experience that is a testimony to his ability to speak on issues of retail theft and fraud.

        If you want your business to be successful you have to ensure you are prepared to address all areas of shrinkage, especially those areas that impact you the most, employee theft and shoplifting. Ignoring these factors or trying to manage them without the proper knowledge and training is a recipe for disaster and you may find your store(s) in that 33% that declares bankruptcy due to employee theft. Contact Loss Prevention Systems, Inc. and schedule your training seminars with one of the premier experts in the industry today. 

Cash Handling Tips That Can Prevent Cash Losses

Have you ever noticed that when a convenience store robbery takes place the crook never demands all of the credit card slips? I have never heard of a bank robber pulling out a gun and yelling for the teller to give them all of the checks in the drawer. What is it the bad guys are always trying to get their hands on…CASH! While Loss Prevention departments do work on credit card and fraudulent check cases our bigger concern is cash theft and fraud. It has been my experience that in many incidents involving a stolen credit card or check, I have been able to work with bank investigators and police detectives to identify and in some cases resolve those crimes. In those situations there is usually a victim as well as a perpetrator of the crime. When it comes to cash loss cases it becomes another matter altogether, the victim is the store. While we may have video of the crime there may not be any other means of tying in additional information. Another issue with cash losses is that the stolen money cannot be tracked further. Stolen credit cards tend to leave a trail of locations where they are used which can lead to greater opportunities to pick up on additional evidence. The same can be true with fraudulent check writing cases. With a cash loss case, once it’s gone you don’t see it again, money is not traced.

     What kind of situations can lead to cash losses? The first thing that comes to mind is internal employee theft. A cashier may steal directly from a register till and pocket the money. You could also have a cashier stealing from customers by short-changing them. I recall at least one case I had in which the employee was keeping back a dollar every so often from a customer’s change they were due back. Until a customer complained to the supervisor rather than going back to the cashier, I had no idea it was taking place.

     External causes of cash loss can include:

  • Robbery
  • Short change artists
  • Till Tappers
  • Counterfeit and fraudulent cash (fraudulent bills may be a $1 bill with two $100 corners pasted over two of the $1 corners. The other two corners are pasted on another $1 bill giving the bad guy $200 of value for a $100 bill and yes, it does happen when a bad guy tries to hurry a new or young cashier).
  • Grab and Runs

In all the cases of external cash losses there are cash handling tips that any store can use to minimize the risk of loss or the amount of exposure to loss:

  • Be sure to do daily bank deposits. Preferably contract with an armored car service to pick up money or drop off change orders. If you choose to conduct your own deposits vary the time of day and the route to the bank. Storing excess money in your cash office only increases the amount you could lose in a robbery.
  • Train cashiers to call a manager or supervisor for any transaction that is $20 or less and the payment is a $100 bill.
  • Train cashiers to never allow someone to put their hand in the till. Slam the drawer closed if necessary. If a customer is taking too long to look for change, the drawer should be closed.
  • Have cashiers place all large bills under the till and call for a pick up when the transaction is complete or have a cash drop at the register that can only be opened by a supervisor. This keeps bills from being seen by customers when the drawer is opened and prevents a grab and run.
  • Use locking till covers for registers. When a register is not in use but has money in it, the till cover prevents someone from getting to the cash even if they have a register key to open the drawer.
  • Cashiers should each have their own till. When multiple employees work from one register it is more difficult to pinpoint who may be causing cash shortages and dishonest cashiers know it.
  • Conduct register skims when they are over a pre-determined dollar amount. There is a temptation for dishonest employees to feel that the more money in the register the less likely a $10 or $20 bill will be missed. Lesser amounts in a register drawer also take away incentive for a potential robber.

There is always going to be risk of loss when cash is an accepted form of tender for your business. Minimizing that risk can be done through training and a few commonsense security measures.