Antishoplifting Or Court: You Make the Choice

July 15, 2015 by Leave a Comment
There is nothing I truly hate to see more than the deputy coming in to serve me with a subpoena for shoplifter court.  It’s not that I don’t like the man; he’s nice enough and it’s not his fault.  I know deep down it is my own fault for not having any Antishoplifting tools and measures in place when the thefts occurred.  In the reactive world we live in, we are more apt to fix theft problems after they happen the first time.  So just this week I looked up to see my deputy friend walking in the door with that dreaded paper in his hand.  I haven’t had any issues in a while so I actually thought he must have been looking for someone in the pharmacy.  (I’m the front end manager of a small retail pharmacy, and we do have the occasional fake prescription or some other issue back there.)  But to my dismay, I was the intended receiver of his summons.  
This particular one is for superior court, instead of the usual lackluster criminal court shoplifter proceedings.  Apparently, one of our incidents was bigger than we thought.  A couple came in a year and a half ago on a night near closing, pushing a baby stroller.  It was November so the fact that there was a blanket covering “the baby” was no red flag.  My staff paid no mind to them, and continued vacuuming and other nightly recovery duties they were assigned to.  Unfortunately, when I came into work the next morning I discovered a huge empty space in my razor section.  On reviewing the camera footage, I had that gut feeling that the couple were the culprits in the near $1,000 theft.   I got a call a month or so later that they had been caught in another state using the same method.  The detective called me because my stores labels were found on some items in their trunk.
That was the  only Antishoplifting tactic I was using on the razor cartridges at that time.  I did not get back near what I lost, but at least it was something.  Of course, as previously stated, I reacted to the theft and after brainstorming with my staff, chose a different course of action to stop it from happening again.  We now utilize Alpha Keepers to display the cartridges, so they are still available for the customer to see and choose from.  For simple peace of mind, we also still attach the store identification stickers to the outside of the boxes.   Now my inventory is safe and secure, without discouraging my honest customers, by making them jump through hoops figuring out some complicated dispensing system or “beg” for them at the checkout counter.  Anthishoplifting should never impede your sales.  
So in a month or so, I’ll have to go to court and get on the witness stand to testify about what I discovered that morning.  All I have to go on is my camera footage, so there are no eye witnesses to the crime.  This is usually not a good thing in criminal court, so I do wonder how it will pan out in superior court.  The camera does not lie, but judges seem to prefer someone actually being there and swearing out what they saw with their own eyes.  Who knows why?  Well, wish me luck, and know that it taught me and my staff that Antishoplifting tools should be used in a proactive manner.  Then I can avoid long days on very hard benches.  
For more information contact us: 1.770.426.0547 or Antishoplifting.net

There is nothing I truly hate to see more than the deputy coming in to serve me with a subpoena for shoplifter court.  It’s not that I don’t like the man; he’s nice enough and it’s not his fault.  I know deep down it is my own fault for not having any Antishoplifting tools and measures in place when the thefts occurred.  In the reactive world we live in, we are more apt to fix theft problems after they happen the first time.  So just this week I looked up to see my deputy friend walking in the door with that dreaded paper in his hand.  I haven’t had any issues in a while so I actually thought he must have been looking for someone in the pharmacy.  (I’m the front end manager of a small retail pharmacy, and we do have the occasional fake prescription or some other issue back there.)  But to my dismay, I was the intended receiver of his summons.  

This particular one is for superior court, instead of the usual lackluster criminal court shoplifter proceedings.  Apparently, one of our incidents was bigger than we thought.  A couple came in a year and a half ago on a night near closing, pushing a baby stroller.  It was November so the fact that there was a blanket covering “the baby” was no red flag.  My staff paid no mind to them, and continued vacuuming and other nightly recovery duties they were assigned to.  Unfortunately, when I came into work the next morning I discovered a huge empty space in my razor section.  On reviewing the camera footage, I had that gut feeling that the couple were the culprits in the near $1,000 theft.   I got a call a month or so later that they had been caught in another state using the same method.  The detective called me because my stores Checkpoint Labels were found on some items in their trunk.

That was the only Antishoplifting tactic I was using on the razor cartridges at that time.  I did not get back near what I lost, but at least it was something.  Of course, as previously stated, I reacted to the theft and after brainstorming with my staff, chose a different course of action to stop it from happening again.  We now utilize Alpha Keepers to display the cartridges, so they are still available for the customer to see and choose from.  For simple peace of mind, we also still attach the store identification stickers to the outside of the boxes.   Now my inventory is safe and secure, without discouraging my honest customers, by making them jump through hoops figuring out some complicated dispensing system or “beg” for them at the checkout counter.  Anthishoplifting should never impede your sales.  

So in a month or so, I’ll have to go to court and get on the witness stand to testify about what I discovered that morning.  All I have to go on is my camera footage, so there are no eye witnesses to the crime.  This is usually not a good thing in criminal court, so I do wonder how it will pan out in superior court.  The camera does not lie, but judges seem to prefer someone actually being there and swearing out what they saw with their own eyes.  Who knows why?  Well, wish me luck, and know that it taught me and my staff that Antishoplifting tools should be used in a proactive manner.  Then I can avoid long days on very hard benches. 

For more information contact us: 1.770.426.0547 or Antishoplifting.net

 

Filed Under: antishoplifting Tagged With:

Take Out The Trash- Employee Theft

July 15, 2015 by Leave a Comment
Did you know that employee theft is actually pretty common when employees are taking out the trash? While it might seem like a messy way to do it, there is a reason why this method has worked for countless dishonest employees.
Would you want to go routing through a stinky, sticky bag of trash, every shift of every day, just to see if an employee was trying to hide merchandise in the trash bag? Probably not. I know that is not a task I would want as part of my job description. That is what makes it such an effective method of getting merchandise out of the store for an employee to steal.
For the most part, no one wants to check a bag of trash, so an employee will put saleable merchandise in the trash bag/ can and volunteer to take the trash out. The merchandise might be protected from the contents of the trash by being concealed in another bag, or it could be hidden in with paper waste from an office area.
From there the bag goes out a back door- that typically does not have any alarms or EAS identifiers on it. Once the bag is in a dumpster or a compactor they can go back to retrieve it at their leisure. That might be later at night after the store is closed and everyone has gone home, or it could be in an early morning hour before employees start to show up for the day. This method employee theft is pretty low risk compared to other ways of getting stolen merchandise out the door.
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.

Did you know that employee theft is actually pretty common when employees are taking out the trash? While it might seem like a messy way to do it, there is a reason why this method has worked for countless dishonest employees.

Would you want to go routing through a stinky, sticky bag of trash, every shift of every day, just to see if an employee was trying to hide merchandise in the trash bag? Probably not. I know that is not a task I would want as part of my job description. That is what makes it such an effective method of getting merchandise out of the store for an employee to steal.

For the most part, no one wants to check a bag of trash, so an employee will put saleable merchandise in the trash bag/ can and volunteer to take the trash out. The merchandise might be protected from the contents of the trash by being concealed in another bag, or it could be hidden in with paper waste from an office area.

From there the bag goes out a back door- that typically does not have any alarms or EAS identifiers on it. Once the bag is in a dumpster or a compactor they can go back to retrieve it at their leisure. That might be later at night after the store is closed and everyone has gone home, or it could be in an early morning hour before employees start to show up for the day. This method employee theft is pretty low risk compared to other ways of getting stolen merchandise out the door.

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.

 

Filed Under: Uncategorized Tagged With: , ,

When Spider Wraps Aren’t Enough

July 13, 2015 by Leave a Comment
I began my retail loss prevention career in an area with rampant Organized Retail Crime and pawn shops on every corner. One pawn shop closed and another popped up out of nowhere. Any shoplifter knows that, when it comes to fencing (the sale of stolen merchandise), small appliances are where it’s at. They make great gifts and pawn shop owners are less likely to ask questions because they are so easily sellable. For that reason, every local shop that carried small appliances was lit up with the blinking red lights of Spider Wraps, except for mine, at the time. 
The first six months of my career I was plagued with the question “how do I stop my coffee makers from going out the door?” In my first holiday season I had lost 33. At $150-$200 each, it was a majority of my Houseware Department’s shortage in 2013. The real goal in loss prevention is to implement programs that protect your merchandise without impeding sales. Generally shortage goals are a percentage of annual sales, meaning the more you sell, the more loss is acceptable. Because Keurigs were the hot item of the season, my store displayed them directly in front of the main store entrance.  Without the option of moving the units further from the door, I had to find a way to protect them. I placed a phone call to my director and requested Spider Wraps. At the time, they were not approved in my store. The shortage had never been high enough to offset the cost of the equipment. It took a lot of pleading and a very informative and convincing PowerPoint presentation but my director finally approved. I was like a kid on Christmas morning when that box was delivered to my office. I worked overtime that day making sure that all the coffee makers, blenders, and juicers were wrapped in their glorious alarms. I worked overtime the next day making sure the associates all knew how to operate them. This is it, I thought to myself. No more running after appliances. They were great! My Housewares activity stopped and I was finally able to focus on other areas of my store. 
Then, two weeks later, I got a call from the store. “I know you’re on vacation but I really feel like you need to be informed that we’ve lost three coffee makers this week.” It didn’t take long for the shoplifters to realize that, if they ran fast enough, it didn’t matter that the alarm went off. The merchandise was so close to the door that they could grab it and run and, with or without the alarm, no one could get there quick enough. I went back to the drawing board. What else was out there that would protect my merchandise? I went through my inventory of tags and cables to no avail. Then, one day, there was another box delivered to my door with a note that said “I ordered too many for another store. Can you use these?” In the box were 2-alarm Alpha Cable Locks. These little locks were obviously too short to wrap around a coffee maker, but they were just the right length to attach the existing spider wraps to the wire shelving unit the merchandise was displayed on. So, that’s what I did. Absolutely, it seemed a little excessive at first but desperate times call for desperate measures! I do have to admit, I thoroughly enjoyed sitting in my office watching suspected shoplifters walk up to the shelves, tug on the alarms and then leave, faces full of disappointment. 
In 2014, I only lost one coffee maker, and I’m pretty sure that was a shipping/receiving error, thanks to the combination of Spider Wraps and Alpha Cable Locks. Unfortunately, we live in a time where our all never seems to be enough when it comes to reducing shortage but, it’s not hopeless with a little creative thinking and the right resources. 
For more information contact us: Alpha Cable Locks or call 1.770.426.0547

I began my retail loss prevention career in an area with rampant Organized Retail Crime and pawn shops on every corner. One pawn shop closed and another popped up out of nowhere. Any shoplifter knows that, when it comes to fencing (the sale of stolen merchandise), small appliances are where it’s at. They make great gifts and pawn shop owners are less likely to ask questions because they are so easily sellable. For that reason, every local shop that carried small appliances was lit up with the blinking red lights of Spider Wraps, except for mine, at the time. 

The first six months of my career I was plagued with the question “how do I stop my coffee makers from going out the door?” In my first holiday season I had lost 33. At $150-$200 each, it was a majority of my Houseware Department’s shortage for that year. The real goal in loss prevention is to implement programs that protect your merchandise without impeding sales. Generally shortage goals are a percentage of annual sales, meaning the more you sell, the more loss is acceptable. Because Keurigs were the hot item of the season, my store displayed them directly in front of the main store entrance.  Without the option of moving the units further from the door, I had to find a way to protect them. I placed a phone call to my director and requested Spider Wraps. At the time, they were not approved in my store. The shortage had never been high enough to offset the cost of the equipment. It took a lot of pleading and a very informative and convincing PowerPoint presentation but my director finally approved. I was like a kid on Christmas morning when that box was delivered to my office. I worked overtime that day making sure that all the coffee makers, blenders, and juicers were wrapped in their glorious alarms. I worked overtime the next day making sure the associates all knew how to operate them. This is it, I thought to myself. No more running after appliances. They were great! My Housewares activity stopped and I was finally able to focus on other areas of my store. 

Then, two weeks later, I got a call from the store. “I know you’re on vacation but I really feel like you need to be informed that we’ve lost three coffee makers this week.” It didn’t take long for the shoplifters to realize that, if they ran fast enough, it didn’t matter that the alarm went off. The merchandise was so close to the door that they could grab it and run and, with or without the alarm, no one could get there quick enough. I went back to the drawing board. What else was out there that would protect my merchandise? I went through my inventory of tags and cables to no avail. Then, one day, there was another box delivered to my door with a note that said “I ordered too many for another store. Can you use these?” In the box were 2-alarm Alpha Cable Locks. These little locks were obviously too short to wrap around a coffee maker, but they were just the right length to attach the existing spider wraps to the wire shelving unit the merchandise was displayed on. So, that’s what I did. Absolutely, it seemed a little excessive at first but desperate times call for desperate measures! I do have to admit, I thoroughly enjoyed sitting in my office watching suspected shoplifters walk up to the shelves, tug on the alarms and then leave, faces full of disappointment. 

That year I only lost one coffee maker, and I’m pretty sure that was a shipping/receiving error, thanks to the combination of Spider Wraps and Alpha Cable Locks. Unfortunately, we live in a time where our all never seems to be enough when it comes to reducing shortage but, it’s not hopeless with a little creative thinking and the right resources. 

For more information contact us: Alpha Cable Locks or call 1.770.426.0547

 

Filed Under: antishoplifting

Stop Jacket And Coat Thefts With Clothing Security Tags

July 13, 2015 by Leave a Comment
Keeping your clothing secure may seem like a challenging endeavor for stores with limited staff and financial resources, but it doesn’t have to be anymore.  There are affordable solutions to help you prevent shoplifting in your store, like Checkpoint tags.  One of the stores I previously worked for at the time only carried leather jackets and other coats seasonally, so as soon as they arrived at the store, we got to work making sure they were all protected with clothing security tags. We knew that when the weather started to get cold, the jacket thieves weren’t going to be far behind.  The previous year, we lost several jackets, so we were going to do everything in our power to stop the same thing from happening this time.  This meant we had to keep a close eye on the merchandise.  
We started by facing a camera directly on the clothing racks and counting the coats every couple hours.  We did this so if we lost any of them, it wouldn’t be too difficult to narrow down who had stolen them when we looked at the video. We put a big obvious hard tag on the jacket where you could see it, but we also dropped some soft Checkpoint tags into the inside pocket of the jacket.  We did this so if the thieves were able to somehow remove the larger obvious tag, they probably wouldn’t expect there to be an extra soft tag hidden on the inside of the jacket, and the alarm would go off at the door when they exited with the merchandise.  For some reason, these particular thieves would leave the empty hangers on the rack, so we would always know when they had stolen a jacket.  I don’t know why they would leave it on the rack and not put it down somewhere else, but I don’t know why shoplifters do half the things they do.  
After we reviewed video of the area, we figured out who was stealing the clothing, which was two different people that were working together. A man and woman would come into the store and try on the jackets separately.  One tried on the clothing while the other would keep a look out for anyone in the area.  They would then casually walk around the store without a care in the world, and walk right out the door wearing the jacket.  It didn’t look suspicious at the time because it was cold outside, and the thieves tucked the clothing security tags that were on the end of the sleeve in the pocket of the jacket.  These shoplifters didn’t care that the EAS (Electronic Article Surveillance) alarm went off as they exited the door, because as soon as they exited, there was a car waiting for them right off the sidewalk, and they were gone quickly.  
Their luck finally ran out the day we caught them with help from local law enforcement, who were able to apprehend them after fleeing following a theft at our store.  When the police stopped the shoplifters, the clothing security tags were still attached to the jackets.  Also, the video we had saved of the same thieves setting off the flashing door alarms on the other occasions helped make it easy to seek charges on the shoplifters for previous jacket thefts.  
For more information contact us: (clothing security tags) or call 1.770.426.0547

Keeping your clothing secure may seem like a challenging endeavor for stores with limited staff and financial resources, but it doesn’t have to be anymore.  There are affordable solutions to help you prevent shoplifting in your store, like Checkpoint tags.  One of the stores I previously worked for at the time only carried leather jackets and other coats seasonally, so as soon as they arrived at the store, we got to work making sure they were all protected with clothing security tags. We knew that when the weather started to get cold, the jacket thieves weren’t going to be far behind.  The previous year, we lost several jackets, so we were going to do everything in our power to stop the same thing from happening this time.  This meant we had to keep a close eye on the merchandise.  

We started by facing a camera directly on the clothing racks and counting the coats every couple hours.  We did this so if we lost any of them, it wouldn’t be too difficult to narrow down who had stolen them when we looked at the video. We put a big obvious hard tag on the jacket where you could see it, but we also dropped some soft Checkpoint Tags into the inside pocket of the jacket.  We did this so if the thieves were able to somehow remove the larger obvious tag, they probably wouldn’t expect there to be an extra soft tag hidden on the inside of the jacket, and the alarm would go off at the door when they exited with the merchandise.  For some reason, these particular thieves would leave the empty hangers on the rack, so we would always know when they had stolen a jacket.  I don’t know why they would leave it on the rack and not put it down somewhere else, but I don’t know why shoplifters do half the things they do.  

After we reviewed video of the area, we figured out who was stealing the clothing, which was two different people that were working together. A man and woman would come into the store and try on the jackets separately.  One tried on the clothing while the other would keep a look out for anyone in the area.  They would then casually walk around the store without a care in the world, and walk right out the door wearing the jacket.  It didn’t look suspicious at the time because it was cold outside, and the thieves tucked the clothing security tags that were on the end of the sleeve in the pocket of the jacket.  These shoplifters didn’t care that the EAS (Electronic Article Surveillance) alarm went off as they exited the door, because as soon as they exited, there was a car waiting for them right off the sidewalk, and they were gone quickly.  

Their luck finally ran out the day we caught them with help from local law enforcement, who were able to apprehend them after fleeing following a theft at our store.  When the police stopped the shoplifters, the clothing security tags were still attached to the jackets.  Also, the video we had saved of the same thieves setting off the flashing door alarms on the other occasions helped make it easy to seek charges on the shoplifters for previous jacket thefts.  

For more information contact us: clothingsecurity.net or call 1.770.426.0547

 

Filed Under: Uncategorized Tagged With: , ,

What To Do To Reduce Shrinkage In Your Store

July 10, 2015 by Leave a Comment

shoplifting1There are many articles out there with tips about how to spot a shoplifter, and while their advice is well intended, it obviously does not translate well.  The retail industry loses billions of dollars every year, and it seems to be getting worse not better.  Knowing your store, educating your management team, employees, and investing in systems to prevent shoplifting can help you minimize your loses, but will definitely not end it.   Profiling a shoplifter is not only bad for business, but can definitely get you in trouble.  Educate your employees and make sure they know what to do if an incident occurs in your store.

Read more for more information about this topic.

New Study Finds Loss Prevention Priorities Fall Short For Large Retailers

Disconnect between IT and LP revealed in budgets of retailers.

New research from the IHL Group examines industry perspectives on loss prevention technologies in retail and the very different ways business groups including IT, LP and the C-Suite, valuate and allocate investment, staffing, and more in those technologies, based on their individual roles and priorities. The study, “The Great Disconnect Between LP and IT,” finds that there is a huge disconnect between IT and loss prevention.

A separate 2015 Retail Theft Survey found that dishonest employees steal more than six times the amount stolen by shoplifters ($825.36 vs $133.80), and yet the findings in the IHL research suggest that the gravity of those numbers don’t line up with the importance executives are placing on the problem.

The study found that retailers with greater than $1B in revenue spend only 8.3 percent of their IT budget on LP priorities (not including PCI and data breach protection efforts); and while 100 percent of LP professionals say cashier monitoring is a priority use of CCTV, IT and other business units de-prioritize it at 56 and 57 percent, respectively.

Retailers Lost $44.02 Billion In Shrink In 2014

​The 24th annual National Retail Secury Survey (NRSS) administered by the National Retail Federation (NRF) shows retail and security providers exactly how much shrink affected retailers in 2014. The national study looks at a variety of topics including employee integrity, inventory shrink and other concerns. The study is the result of a partnership between the University of Florida, with the report sponsored by The Retail Equation. NRF shared excerpts from the report in a press release. The study, with responses from 100 senior loss prevention executives, was conducted in March and April. The findings should illuminate topics of concern for retailers, and examine what issues they need to consider for preventing high levels of shrink.

“Retail loss prevention professionals have one of the hardest jobs in the industry – protecting their customers, employees and merchandise from the threat of harm and fraud, and the results of this survey prove the enormity of their task,” says NRF President and CEO Matthew Shay. “Retailers will continue to review best practices and work to better educate decision makers in Washington about the burdens these crimes place on consumers, retail companies, their employees and the economy.”

Reducing Retail Shrinkage: How to Beef Up Security and Prevent Loss in Your Store

Shrinkage (aka: Public Enemy #1 for most retailers), can eat up a significant amount of your profits. According to the National Retail Federation, retail shrinkage amounted to $34.5 billion in 2011, and a big chunk of that was due to theft or fraud.

That’s why it’s critical to constantly stay on top of protecting your store. Keep your systems up-to-date, be vigilant about spotting fishy behavior, and see to it that your staff is adequately trained to deal with security issues.

To help you do all that, below are some of the most common causes of retail shrinkage along with security tips to help you prevent them.

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Information You Need to Know About Pre-employment Screening

July 6, 2015 by Leave a Comment

shoplifting4

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

Follow the links for more information about this topic

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

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

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

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

How could pre-employment test be discriminatory?

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

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

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

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

“It’s legal, but…”

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

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

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

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

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Warning Signals of Theft by Outsiders

July 2, 2015 by Leave a Comment

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

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

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

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

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

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

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

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

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

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

2. Anonymous phone calls or letters concerning theft.

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

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

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

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

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

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

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

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

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

12. Complaints received from other businesses or retailers.

13. Shoplifters are always blamed for the theft.

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

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

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DETECTING FAKES – COUNTERFEIT MONEY

July 2, 2015 by Leave a Comment

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

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

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

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

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TIPS FOR PRE-EMPLOYMENT SCREENINGS

July 2, 2015 by Leave a Comment

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

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

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

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

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

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

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

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

How important is confidentiality?

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

Can you tell me about your greatest failure?

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

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Credit Card Fraud and the Rollout of EMV

July 2, 2015 by Leave a Comment

shopliftingSome major changes are taking shape this year to help combat the ever rising prevalence of identity theft and credit card fraud. With it comes some confusion for the small business owner. Credit card fraud (duplicated cards, cloned credit cards, data breaches…etc) losses mount in the hundreds of millions of dollars every year. The numbers are doubling every couple of years. Chances are, you’ve been the victim, you’ve known someone who’s been a victim, or someone (or a group of someones) have used fraudulent credit cards in your store before. The new EMV (Europay, MasterCard and Visa) aims to derail these operations by installing a tiny computer chip on your credit card, instead of using a magnetic strip (which can be very easily duplicated). The “deadline” issued by the major credit card companies is October 15, 2015. That doesn’t mean everyone will be onboard though. You can bet that those large retailers will have the new software and POS systems in place, but where does that leave small businesses? What can you expect from this? And the big question is, how much is it going to cost you?

Basically, the United States is behind most other countries in the developed world with regards to credit card security. It’s time for us to play catch-up, but it could lead to some pretty substantive business expenses. Currently, cards issued in the US have a magnetic strip on the back of the card, which is swiped at the point of sale. That magnetic strip contains unchanging data. If a fraudster (think massive data breaches over the last few years), gets the information contained in the strip, credit cards can be duplicated, replicated and counterfeited, and thus the booming fraudulent credit card industry is born. It’s such a problem that law enforcement is overwhelmed. It’s impossible for them to investigate every time a card is used; they simply do not have the resources. Federal agencies focus on the counterfeiters themselves, but more often than not they are made overseas, far out of the reach of US prosecution. Enter EMV.

New cards, which have already begun hitting consumer pockets, will have a tiny computer chip embedded in the card. At first, they will also contain a magnetic strip (a backup until all businesses are 100% compliant). Unlike the strip, the computer chip will be inserted into the businesses POS via a card reader and a unique transaction code generated for each transaction, making cloned or counterfeit cards virtually impossible. It means a more secured card and less risk on the back of the issuer. In addition, the liability of loss will eventually shift from the issuer to the less EMV compliant party (the business). Basically, if a fraudster uses a fraudulent credit card in your store, you very well could be liable for those charges if you don’t have the proper technology installed.

This radical shift has both positive and negative impacts. First of all, it will reduce brick and mortar credit card fraud. On the opposite side, it will more than likely push the fraud to an e-com platform. Europe has seen this happen over the last few years. This will no doubt happen here as well. Criminals will always find a way. Second, small business owners like yourself will have to incur the cost of updating your payment processing systems. In some cases, it may be a few hundred dollars, but the costs can spiral into the thousands depending on your particular business and how your POS is currently set up. While I think this was a great step in the right direction to minimize fraud, I think the small business community will face some initial costs associate with the transition, as well as a tad bit of frustration.

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