Anyone Can Do It- Employee Theft

August 15, 2015 by Leave a Comment
Anyone can do it. Employee theft happens with every demographic of employee, and every level of employee from janitor, to manager to CEO. Employee theft is basically taking an asset, or resource that holds some kind of monetary value, and depriving the company (the rightful owner) of that asset and financial benefit.
In the news just the other day, a merchandising executive for a popular mall-store clothing brand was sentenced for taking onwards of 25 million dollars in kickbacks from a vendor. Let that sink in for a second. 25 MILLION dollars. That’s a lot of money, even if it was taken over a period of several years.
The basic story goes, this particular merchandising executive entered into a deal with a particular manufacturer. With the agreement to buy a particular amount of merchandise exclusively from this manufacturer, the executive would receive 50% of the profits. The executive’s company lost out on possible profits by using other manufacturers that had better process, or better quality of products offered. 
The primary reason that the executive was caught, was due to the manufacturer’s other illegal dealings- leading a trail to this executive and their partnership.
While it is very unlikely that the majority of small businesses would be put in a position to have 25 Million in kickbacks, that doesn’t mean a trusted employee might have their own kickbacks and under the table partnerships with vendors.
For more information on employee theft, employee theft investigation or internal theft contact us or call 1.770.426.0547 – Atlanta Georgia
Visit the Loss Prevention Store to purchase CCTV Systems that can help you stop Employee Theft and Internal Theft problems and help with your Employee Theft Investigation.

Anyone can do it. Employee theft happens with every demographic of employee, and every level of employee from janitor, to manager to CEO. Employee theft is basically taking an asset, or resource that holds some kind of monetary value, and depriving the company (the rightful owner) of that asset and financial benefit.

In the news just the other day, a merchandising executive for a popular mall-store clothing brand was sentenced for taking onwards of 25 million dollars in kickbacks from a vendor. Let that sink in for a second. 25 MILLION dollars. That’s a lot of money, even if it was taken over a period of several years.

The basic story goes, this particular merchandising executive entered into a deal with a particular manufacturer. With the agreement to buy a particular amount of merchandise exclusively from this manufacturer, the executive would receive 50% of the profits. The executive’s company lost out on possible profits by using other manufacturers that had better process, or better quality of products offered.

The primary reason that the executive was caught, was due to the manufacturer’s other illegal dealings- leading a trail to this executive and their partnership.

While it is very unlikely that the majority of small businesses would be put in a position to have 25 Million in kickbacks, that doesn’t mean a trusted employee might have their own kickbacks and under the table partnerships with vendors.

For more information on employee theft, employee theft investigation or internal theft contact us or call 1.770.426.0547 – Atlanta Georgia

Visit the Loss Prevention Store to purchase CCTV Systems that can help you stop Employee Theft and Internal Theft problems and help with your Employee Theft Investigation.

 

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Managerial Isolation = Fraud Opportunities

August 14, 2015 by Leave a Comment

theft (13)There’s been a lot of research conducted, Dilbert cartoons drawn and articles written about the isolating effects of the cubicle culture in business.  This conversation has expanded lately to include increasing awareness of and concerns about the growing trend toward group management — managing people as a group rather than as individuals.

Proponents of this style suggest that supervising people as a group is a more contemporary, efficient way to allocate time and money.  Communication is primarily done via emails, memos, texts, social media, conference calls and meetings.  The thinking behind this concept is that people will become more independent with less oversight.

The premise that employees will step up and become more responsible through limited leadership or leaderless teams is actually an old one, which has been tried with limited or no success.  The idea that people are just waiting for and will happily seize the opportunity to be honestly self-determining is flawed, because it ignores basic human nature.

Isolating managers from employees doesn’t take into account that, depending on the study, 75% — 85% of people say that given the right circumstance they have or would commit occupational fraud.  That they have in the past and/or would in the future steal time, money and property from their employer, even one they like working for.

Occupational fraud is something most businesses have had, are having or will have.  Involved, aware and reasonable management is the first and best line of defense in making sure the right circumstances (motive, means and opportunity) don’t occur.  Good management requires knowing your people, a well thought-out and monitored security plan, and consistent checks and balances.

It’s common for employees to talk about how they “would do things better” if they had more power, don’t be fooled by it.  Only 34% (CareerBuilder, 2014) want to be bosses, and many of them aren’t doing anything to make it happen.  The reality is that most people want to do their jobs without increased responsibility for themselves, just for others. 

Nicole Abbott is a writer and psycho-therapist with over 20 years of experience in the fields of mental health and addiction.  She’s an educator, consultant, lecturer, trainer and facilitator, who’s conducted over 200 workshops, trainings, presentations, college classes and seminars. 

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Can Bottle Locks Help Curb Thefts of Goods in Transit?

August 14, 2015 by Leave a Comment
RL-172 
bottle locks-5 , bottle security-3 
Can Bottle Locks Help Curb Thefts of Goods in Transit?
If you own or manage a store that sells wine or liquor, you should already know that the best way to ensure bottle security is to use bottle locks.   But sometimes the theft occurs before the liquor even makes it to the store.  Many trailers containing merchandise are now equipped with GPS to locate the stolen trailer, but you may be locating an empty trailer if the thieves work fast enough.  Very recently, I read a news story about a trailer theft of liquor totaling $100,000. That is a huge loss for even for a large company.   Knowing this, wouldn’t it be a good idea to protect the liquor bottles from the point of origin?  That’s right, I’m talking about protecting merchandise against cargo theft, or the theft of goods in transit.  The company buying the merchandise would likely be responsible for the cost of securing the merchandise, but who exactly would be responsible for actually placing the devices onto the products.   
One way to do this is to have the bottle locks placed onto the bottles when they reach the distribution center, and that would help keep your merchandise safe until it reaches its final destination.  But this wouldn’t protect the merchandise before it reached the distribution center.   In a perfect world, the best time to attach bottle locks to the merchandise is before they leave the manufacturer.   This would ensure that the merchandise was immediately secured before being transported anywhere, by any means of transportation.   Regardless of which point the bottle security devices are attached, the likelihood of them being stolen will decrease at that point. 
Think of it kind of like manufacturers that offer source tagging, only with bottle security.   With source tagging, the security tag is already inside or attached to the merchandise packaging when it leaves the manufacturer.   This allows the items to be protected from the manufacturer to the store shelf.   I would like to think that if thieves know that a trailer contains merchandise protected by security devices, and that it will take a huge amount effort to remove all of them, they would think twice about stealing the merchandise from the trailer or shipping container.   One problem with this would be that the thieves probably won’t know what exactly is in the trailer until it is opened, unless the shipping container is branded or contains some kind of advertising on the outside.   
If this is the case, you could always add a notice that the merchandise is protected.   Why not? This would be similar to the way that signs on homes with alarm systems are used to make burglars think twice before attempting to break into your house.   There’s no guarantee that a thief still won’t try to break in, but if given the choice of a home without a security system, and one without one, I’m betting they will choose the one that isn’t secured.  If you think it sounds expensive to have your shipment of liquor secured with bottle locks, imagine how much it will cost you if you lost a whole shipment of your merchandise.   You might not have an order as large as $100,000 coming in, but even if the shipment is worth $1,000, it would likely be a huge blow to a small business.   How much time would it take you to recoup that kind of loss?   I think it’s always a better idea to be prepared, and make sure that your merchandise is protected, instead of wishing you would have done something before it was too late.
For more information about bottle locks, contact us or call 1.770.426.0547

If you own or manage a store that sells wine or liquor, you should already know that the best way to ensure bottle security is to use bottle locks. But sometimes the theft occurs before the liquor even makes it to the store. Many trailers containing merchandise are now equipped with GPS to locate the stolen trailer, but you may be locating an empty trailer if the thieves work fast enough. Very recently, I read a news story about a trailer theft of liquor totaling $100,000. That is a huge loss for even for a large company. Knowing this, wouldn’t it be a good idea to protect the liquor bottles from the point of origin? That’s right, I’m talking about protecting merchandise against cargo theft, or the theft of goods in transit. The company buying the merchandise would likely be responsible for the cost of securing the merchandise, but who exactly would be responsible for actually placing the devices onto the products.

One way to do this is to have the bottle locks placed onto the bottles when they reach the distribution center, and that would help keep your merchandise safe until it reaches its final destination. But this wouldn’t protect the merchandise before it reached the distribution center.   In a perfect world, the best time to attach bottle locks to the merchandise is before they leave the manufacturer. This would ensure that the merchandise was immediately secured before being transported anywhere, by any means of transportation. Regardless of which point the bottle security devices are attached, the likelihood of them being stolen will decrease at that point. 

Think of it kind of like manufacturers that offer source tagging, only with bottle security. With source tagging, the security tag is already inside or attached to the merchandise packaging when it leaves the manufacturer.   This allows the items to be protected from the manufacturer to the store shelf. I would like to think that if thieves know that a trailer contains merchandise protected by security devices, and that it will take a huge amount effort to remove all of them, they would think twice about stealing the merchandise from the trailer or shipping container. One problem with this would be that the thieves probably won’t know what exactly is in the trailer until it is opened, unless the shipping container is branded or contains some kind of advertising on the outside.

If this is the case, you could always add a notice that the merchandise is protected. Why not? This would be similar to the way that signs on homes with alarm systems are used to make burglars think twice before attempting to break into your house. There’s no guarantee that a thief still won’t try to break in, but if given the choice of a home without a security system, and one without one, I’m betting they will choose the one that isn’t secured.If you think it sounds expensive to have your shipment of liquor secured with bottle locks, imagine how much it will cost you if you lost a whole shipment of your merchandise. You might not have an order as large as $100,000 coming in, but even if the shipment is worth $1,000, it would likely be a huge blow to a small business. How much time would it take you to recoup that kind of loss? I think it’s always a better idea to be prepared, and make sure that your merchandise is protected, instead of wishing you would have done something before it was too late.

For more information about bottle locks contact us or call 1.770.426.0547

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Shoplifting Prevention and Your Store Policies

August 13, 2015 by Leave a Comment

shoplifting4

Video surveillance has been considered for many stores a way to stay abreast criminal acts against their businesses.  Shoplifting is crime that is constantly jeopardizing profits for many stores across the world, video cameras and other means to prevent shoplifting have helped stores fight this crime, but is always a battle that is changing with new technology coming into play.  Posting and knowing the policies and procedures that govern your retail stores concerning shoplifting, can help keep your employees safe and your store from becoming a hang out place for shoplifters.

Read more about this and other topics by following the links below.

Macy’s employee stabbed trying to stop shoplifting at D.C. store, police say

A Macy’s employee was stabbed in the shoulder Tuesday afternoon as he tried to prevent a suspected shoplifter from leaving the store’s downtown location near Metro Center, according to D.C. police.

The worker was not seriously injured and the suspected stabber was arrested, police said. The incident occurred about 3:30 p.m. near the store’s entrance in the 1200 block of G Street NW, along a street lined with stores four blocks from the White House.

Lt. Sean Conboy said police could not immediately provide any information about the person who was arrested.

Taking steps to prevent shoplifting

In early July, $3,000 in designer dresses, slacks and jackets were stolen from ADORE Designer Retail Boutique in Cary, one of Nancy Alinovi’s two consignment shops in the Triangle. She still feels sick about it.

“It’s just this feeling in your chest,” she said. “It’s not a victimless crime.”

Alinovi said it will be two months before everything returns to normal at the family-owned boutiques, which cut prices in order to stay afloat after the theft. Her experience shows the toll shoplifting takes on small businesses, where margins are small and business is personal.

There were 582 calls to the Raleigh Police Department regarding shoplifting in the past year, said Jim Sughrue, department spokesman. They run the gamut from family-run gas stations to department stores, he said.

According to a National Retail Federation’s security survey, shoplifting accounted for 38 percent of the $44 billion in retail inventory loss due to crime in 2014.

Focus on shoplifting

Police nab thief with aid of video

Video surveillance was a key factor in the arrest of a Grand Falls-Windsor man Aug. 9 after he was caught on film on three separate occasions stealing from local businesses.

Grand Falls–Windsor RCMP arrested and charged the 27-year-old with theft under $5000. He was released from custody, placed on conditions and scheduled to appear in court at a later date.

Grand Falls-RCMP also dealt with a number of assault and disturbance cases among the 68 calls for service fielded at the detachment between Aug. 3 and Aug. 9.

On Aug. 4, the Grand Falls–Windsor RCMP arrested and charged a 30-year-old Grand Falls–Windsor resident for uttering threats. The male had written a letter threatening to kill a local female.  The male is scheduled to appear in court at a later date.

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Shark Tags And The Online Retailer

August 13, 2015 by Leave a Comment
Refunds and exchanges can really open your store up to fraud and theft. That’s why it’s increasingly more and more important for retailers, especially online retailers, to have policies and controls in place to minimize their exposure to these losses. With brick and mortar stores, refund fraud is climbing higher and higher every day. Stores are fighting back with more sophisticated analytics and some of the bigger retailers even fight back by suspending store gift cards that are suspected of fraud, or meet certain criteria that could be fraud. These fraudsters, just as the LP industry, have to constantly change and adapt to new climates in order for them to perpetuate their schemes. They are more and more frequently moving into the e-com platform to conduct their fraudulent acts, and if your company doesn’t have some simple controls, they can bilk you for thousands. 
It’s a fact that more consumers are seeking online shopping as an alternative to the traditional retail settings. In fact, your bigger box retailers have all but embraced this fact, making it easier for the customer by providing a countless array of options to order online, in store in addition to returning merchandise at a local store. The possibilities are seemingly endless. So is the opportunity for fraud.  You should have a strong return policy and it should include something as simple as the Alpha Shark Tag. 
No one likes to purchase something through an online retailer, only to find that it doesn’t fit, or it wasn’t what you expected. I’ve been there and chances are you have too. You also don’t want to fight with a store to take back their product. They didn’t fight to take your money in the first place, right? Enter the Alpha Shark Tag. These small, bright red, tools make it easy for you to stop theft and refund fraud. 
The tag is a visible deterrent and can be placed in an obvious location. This allows the customer to try on the product, but would not allow them to wear it out for any occasion (think a prom dress, or expensive outwear). With a clear return policy that states once the Shark Tag is removed (which can be done at home with some scissors), the item cannot be returned. You’ve now eliminated the chance for someone to essentially rent your products. This technique can be used on a whole host of merchandise, and not just apparel. So do yourself and your business a favor; get on board with this simple device and leave the thieves out to dry!
For more information, contact us: Shark Tags, or call 1.770.426.0547

Refunds and exchanges can really open your store up to fraud and theft. That’s why it’s increasingly more and more important for retailers, especially online retailers, to have policies and controls in place to minimize their exposure to these losses. With brick and mortar stores, refund fraud is climbing higher and higher every day. Stores are fighting back with more sophisticated analytics and some of the bigger retailers even fight back by suspending store gift cards that are suspected of fraud, or meet certain criteria that could be fraud. These fraudsters, just as the LP industry, have to constantly change and adapt to new climates in order for them to perpetuate their schemes. They are more and more frequently moving into the e-com platform to conduct their fraudulent acts, and if your company doesn’t have some simple controls, they can bilk you for thousands. 

 It’s a fact that more consumers are seeking online shopping as an alternative to the traditional retail settings. In fact, your bigger box retailers have all but embraced this fact, making it easier for the customer by providing a countless array of options to order online, in store in addition to returning merchandise at a local store. The possibilities are seemingly endless. So is the opportunity for fraud.  You should have a strong return policy and it should include something as simple as the Alpha Shark Tag. 

 No one likes to purchase something through an online retailer, only to find that it doesn’t fit, or it wasn’t what you expected. I’ve been there and chances are you have too. You also don’t want to fight with a store to take back their product. They didn’t fight to take your money in the first place, right? Enter the Alpha Shark Tag. These small, bright red, tools make it easy for you to stop theft and refund fraud. 

 The tag is a visible deterrent and can be placed in an obvious location. This allows the customer to try on the product, but would not allow them to wear it out for any occasion (think a prom dress, or expensive outwear). With a clear return policy that states once the Alpha Shark Tag is removed (which can be done at home with some scissors), the item cannot be returned. You’ve now eliminated the chance for someone to essentially rent your products. This technique can be used on a whole host of merchandise, and not just apparel. So do yourself and your business a favor; get on board with this simple device and leave the thieves out to dry!

For more information, contact us: Shark Tags, or call 1.770.426.0547

 

Filed Under: Uncategorized

It Takes A Well Rounded Manager To Prevent Shoplifting

August 11, 2015 by Leave a Comment
We all work with difficult personalities, right? If you’re out there reading this and you don’t, well you should consider yourself very lucky. There hasn’t been a job, office, or store that I’ve worked in where I didn’t have at least one difficult personality to work with. One that stands out involved a store manager who was tired of shoplifting in his store. He would call me every week it seemed to complain about the theft problem and tell me that my department (LP) wasn’t doing enough to prevent shoplifting in his store. Being is that preventing losses was literally, all I did, I took it just a little personal. To make matters worse, this same store manager would resist every LP initiate that came down. 
This particular store was having a huge issue with electronics being stolen at the store. As a way to prevent shoplifting of these items, I had our offices send him a few cases of Alpha Spider Wraps. A few weeks later, I was conducting some visits in stores and found that the cases were still sitting in the warehouse. The store manager told me that he didn’t have the payroll budget to spend in order for his employees to put those devices on the products that he, himself, was complaining about being commonly shoplifted. Would’ve taken 10 minutes and he could’ve saved thousands of dollars in shrink. 
There are in fact some of you, right now, sitting at home, or in your office reading this, saying to yourself, “Wow… I’m kind of like that manager.” Even though you’ll never say it to anyone but yourself, you know it. It’s not because you want to battle, but it’s because you’re thinking too much like a manager. I used to think that a good LP professional had a background in law enforcement, or degrees in criminal justice. What I’ve learned is the opposite. Some of the best people that work for me now have MBA’s, degrees in marketing and even Human Resource management. I bring this up for one reason. In order to prevent shoplifting, you have see if from not only an LP perspective, but also from a business view as well. 
You own your business. Someone comes to you and says, “Here’s this tool. If you implement this tool today, you will increase your profits.” Chances are, you’re going to use that tool. That exactly what EAS devices are to retailers. Tools to reduce losses, thus increasing your profits. Don’t be that manager anymore. Accept the tools available to you and prevent shoplifting losses before they ever happen. 
For more information, contact us: Prevent Shoplifting, or call 1.770.426.0547

We all work with difficult personalities, right? If you’re out there reading this and you don’t, well you should consider yourself very lucky. There hasn’t been a job, office, or store that I’ve worked in where I didn’t have at least one difficult personality to work with. One that stands out involved a store manager who was tired of shoplifting in his store. He would call me every week it seemed to complain about the theft problem and tell me that my department (LP) wasn’t doing enough to prevent shoplifting in his store. Being is that preventing loss was literally, all I did, I took it just a little personal. To make matters worse, this same store manager would resist every LP initiate that came down. 

 This particular store was having a huge issue with electronics being stolen at the store. As a way to prevent shoplifting of these items, I had our offices send him a few cases of Alpha Spider Wraps. A few weeks later, I was conducting some visits in stores and found that the cases were still sitting in the warehouse. The store manager told me that he didn’t have the payroll budget to spend in order for his employees to put those devices on the products that he, himself, was complaining about being commonly shoplifted. Would’ve taken 10 minutes and he could’ve saved thousands of dollars in shrink. 

 There are in fact some of you, right now, sitting at home, or in your office reading this, saying to yourself, “Wow… I’m kind of like that manager.” Even though you’ll never say it to anyone but yourself, you know it. It’s not because you want to battle, but it’s because you’re thinking too much like a manager. I used to think that a good LP professional had a background in law enforcement, or degrees in criminal justice. What I’ve learned is the opposite. Some of the best people that work for me now have MBA’s, degrees in marketing and even Human Resource management. I bring this up for one reason. In order to prevent shoplifting, you have to see it from not only an LP perspective, but also from a business view as well. 

 You own your business. Someone comes to you and says, “Here’s this tool. If you implement this tool today, you will increase your profits.” Chances are, you’re going to use that tool. That exactly what EAS devices are to retailers. Tools to reduce losses, thus increasing your profits. Don’t be that manager anymore. Accept the tools available to you and prevent shoplifting losses before they ever happen.

For more information, contact us: Prevent Shoplifting, or call 1.770.426.0547

 

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Real Time Anti-Shoplifting App For Your Mobile Devices

August 8, 2015 by Leave a Comment

LPSI EVOLVE-Store Mobile AppWhen I look at the Electronic Article Surveillance (EAS) marketplace there are two very distinct offerings: Checkpoint Systems and the “other guys”. I realize that this is a bold and maybe arrogant statement. Despite the fact that we are the largest nationwide Checkpoint Dealer for the small to medium size retailer in The United States and yes, I do favor Checkpoint Systems, it really is a true statement.

I wish I could take you on an inside tour of Checkpoint’s facilities from R&D to Manufacturing to Support to Service and everything in between. What you would learn is that there really is only Checkpoint Systems and the “ring the bell, light the light” crowd. Checkpoint Systems is so far advanced beyond the other guys, it is mind boggling.

So now Checkpoint has moved the EAS industry further again. EVOLVE-Store puts your Checkpoint Systems in your mobile device. An app delivers real-time information through a smartphone or tablet, providing real-time visibility and engagement with your EAS & ORC theft prevention systems.

The EVOLVE-Store app will also help to improve your consumer conversion rates through real-time visibility of the number of shoppers in your store and measures your policy compliance by managing response times to alarm events.LPSI EVOLVE-Store Mobile App 2

Combine this with Checkpoint Systems VisiPlus which is retail people counting at its best and you have a substantial retail theft management system available to you regardless of where you are. Seeing theft-related events that are affecting your store in real time gives you an edge.

I have been a retailer in the loss prevention world for over 30 years. I have personally apprehended hundreds of shoplifters, investigated over 2300 retail employees for theft, built and directed the Loss Prevention program for several major retailers. But I have never seen such significant advances in such a short period of time in the loss prevention field. But what make Checkpoint Systems so different is that all of this is not just designed for the major retailer. EVOLVE-Store is an affordable program for the small single store and medium sized retailer.

If you are interested in learning more about Evolve-Store and Checkpoint Systems EAS, please contact me, Bill Bregar at 1-770-426-0547.

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TIPS TO PREVENT SHOPLIFTING

August 8, 2015 by Leave a Comment

shoplifting1I’m constantly asked on ways to prevent, or stop shoplifting by store employees and managers. They see the empty packages every day and some of them are just tired of dealing with the problem. I have some managers that think by increasing the LP headcount will make a difference, while others want to lock everything up behind glass. How do you prevent shoplifters from targeting your store? Do you lock everything up and use the newest EAS devices to battle the growing shoplifting problem? What if I told you that while EAS devices are a great resource, you can implement several programs in your store that wouldn’t cost you a single penny? Interested yet?

First and most importantly, you have to build an awareness culture in the store. You employees need to be engaged and pay attention to what’s happening around them. Look at your store tomorrow. Are you team members being unproductive, are they failing to greet and assist your customers, are they task oriented? You’re probably going to answer yes to each of those questions and that’s OK. Those are all behaviors that can be addressed and corrected. How do you make them care?

It starts at the top. From the store manager on down, there needs to be clear expectations set in terms of customer service and store standards. Employees that don’t meet these expectations should be weeded out. Customer service is the greatest tool you have. If a customer knows that they can’t walk 10 feet before being assisted by your store, they will most likely return to your store. Likewise, a thief isn’t going to want that much attention and it will drive them away.

Second, start discussing shrink and loss prevention at every store meeting, morning meeting and department meeting. Give your team the knowledge of what is being lost and when. Discuss the top 5 stolen items for the month and the top shrinking department. Talk about known shoplifters and any specific products that are being targeted. This is also a great time for department employees to share new “hot” items that the rest of the store should be aware of.

Third, have a “LP communication station”. In my store, I have a large message board in the break-room. Here, I display the month/week shrink numbers, highest shrink department and top shrink skus. I also include different shrink topics each week so the team members can always gain some knowledge. I also feature an employee each week that has done something that positively impacted shrink. Maybe it was a cashier that caught a price switch, or maybe a sales team member that deterred a shoplifter. It’s a great place to recognize their behavior so they constantly strive to continue their actions to get “featured” again.

Lastly, you need to have a good cashier training program. So much fraud happens on the front end, it’s almost unbelievable. You have customers stuffing merchandise, altering prices, using fake credit cards, phony checks, counterfeit currency, hiding product under baskets, quick change artists and the list can go on and on. A well trained cashier team is your last line of defense against fraud. I constantly hold training sessions with my cashier team. It doesn’t matter if they’ve been with me for one week, or three years. There is always something they can learn to be more aware of how losses occur at their registers. Personally, I hold a contest each month with my cashiers to see who can catch the most amount of theft/fraud. You’d be surprised the results you can get if you offer up a free meal☺.

The greatest part of all of this is that it’s completely free. You can spend thousands of dollars on a camera system, EAS devices and/or a dedicated LP team in your store and still not see the same results as you would by just implementing some of these steps. There is absolutely no substitute for a well-trained and focused employee to prevent theft.

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WHAT CAN EAS TAGS DO FOR YOU?

August 8, 2015 by Leave a Comment

shoplifting3The technology placed in retail anti-theft devices seems to change and evolve every month. Every time I go to an expo, or browse online, I always find new and exciting tools to reduce shrink and protect the financial investment I have in my inventory. Most people assume that EAS devices are there to stop a shoplifter, and while that is absolutely true, they can also be used for training your employees.

In a perfect world, I would hire a cashier and they would be familiar with every item that I sell in my store. They would know the difference between a $20 fishing pole and a $200 one. They would be able to tell the difference between a $250 paintball marker and a box of paintballs. In reality though, they do not. So how do I get my cashiers to think like an LP? It’s easy… I make it dummy proof.

My store carries a good selection of offshore fishing rods that are easily over 6 feet long. Nobody is putting these bad boys down their pants and walking out the store. I still secure them with an EAS device. Same goes for those big expensive coolers. Those aren’t simply walking out of the store, but I’ve got EAS tags on those too. To some, this may be unnecessary and a waste of the resource and tools. To me, though, it’s one more way I make it easy for my cashiers to know what they are scanning.

Just the other day, one of my cashiers called me over for a customer that was trying to purchase one of those big fishing reels. Problem was it was scanning at the register for $14. These retail for $199. How did the cashier identify the fraud? It’s because she was trained to identify the retail anti-theft device placed on the rod. She doesn’t have to know a single thing about offshore fishing, but she sure as heck knows that if it has that security device, it will cost more than $100!

While EAS devices can and will deter a shoplifter, that doesn’t always account of all the other types of theft that criminals will come up with. Price switching is a very common fraud scheme and with inattentive and untrained cashiers, you could be opening yourself up to substantial losses. While it’s highly unlikely that someone will attempt to conceal a tennis racquet, there will be those who will attempt to alter its pricing indicator. Be ready for them next time with this simple, easy and effective way to leverage your EAS assets in a way that you may not have considered before.

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EMPLOYEE THEFT MOVES INTO ONLINE MARKETPLACES

August 8, 2015 by Leave a Comment

theft (13)This past month, I closed out one of the biggest employee theft cases of my career thus far. While it was quite exciting and a huge win for my team, it left a lot of questions about our internal controls, that after this case, surely must evolve. Lots of people that I come into to contact with really misconstrue the facts regarding employee theft. You’ve heard the phrase before… “You have more internal theft than external theft.” Every time I hear this phrase, I find myself trying to educate the manager on this. While most people assume that 75% percent of their employees steal, realistically, only a very small percentage of employees engage in this behavior. Those that do though, create a substantial financial loss to the company.

As part of my investigative routine, I normally check online sale sites for possible stolen merchandise. Selling stolen product online is most likely to quickest and easiest way to get rid of goods in a hurry. As I was browsing through I noticed a pair of wireless headphones that had just hit our stores. Interesting enough, the item still had our company markings on it. From there I was able to quickly identify the geographical area and before long I was able to identify the owner of the page. That owner was a warehouse supervisor at one of my stores.

Well, it didn’t take long for me to find quite literally, hundreds and hundreds of items either that had previously been sold, or were up for sale on this website. Lots of these items were electronics such as cameras, headphones, accessories, phone cases and other large bulk product such as coolers and outdoor furniture. Looking at the store’s inventory I could tell that some of the product had in fact come from that location. Over the course of several weeks, I initiated several online purchases. Most were for electronic devices that had a serial number. Once received, I was able to determine that the items did in fact belong to that store and those particular items were not accounted for. I had made my case.

How was this associate getting this much product out the door without anyone noticing him? I still didn’t have that piece of the puzzle. Without enough ammunition for prosecution, I interviewed this supervisor to determine how he was obtaining this much product. I knew it was stolen, I just didn’t know by whom and in what manner. What I uncovered during this interview was one of the most sophisticated and organized theft operations I have seen in my career.

That particular store was also a hub warehouse. This means that online purchases made by customers in a certain geographical area would be sent to our store and warehouse to fulfill. This of course gets the item to the customer much faster than going through our centralized distribution center. Once the order was filled for a customer, it would be packed and set in a designated area and a private mail delivery service would pick up once a day.

The supervisor had gained access to the shipping account, so he was able to ship product out without anyone second guessing the boxes. At first, according to our records and his online account, he was shipping merchandise directly to his customer’s houses. He said that he thought that was a bit risky and ultimately began shipping massive quantities of merchandise to a vacant home close to his. Each day, he would pass by and take the packages from the porch. From there, he would run his online store. This had been going on for the past two years. This one employee, working alone had taken nearly $250K worth of merchandise over this time period.

With the dishonest employee out of our store, we focused on what went wrong. We began a program of inspecting all boxes and shipments prior to them being sealed and implemented a system that a number of shipping boxes each day could be verified. We also set up exception style reports that showed any time a delivery was sent to the same address more than 5 times a month. This was a costly lesson for us to learn and hopefully with better controls and more oversight, it will never happen again.

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