Employee Theft and How to Prevent it

shoplifting4Now, research has shown the retail loses more from employee theft every year without knowing how to stop it, than at any other time.  Employee theft, shoplifting, credit card fraud, and many other fraudulent practices are plaguing the retail industry without a clear solution to the problem.  Local police in many communities across the US are implementing programs to help reduce criminal activities around their communities.  To read more about this topic follow the links below.


4 Ways to Protect Your Business Against Employee Fraud and Theft

Q: Which internal accounting controls can help prevent fraud?

A: This is a vast topic covered by countless books and consultants, so let’s narrow it down to employee fraud and theft. Aside from the obvious—conducting regular inventory checks and book audits, reconciling cash daily, and personally reviewing financial statements each month—there are several actions you can take to protect yourself and your business.

1. Establish a code of conduct.

Did you know that Walmart employees are not allowed to accept a bottle of water or cup of coffee from a vendor at a meeting without paying for it? That’s what I mean by a code of conduct. It’s a statement that you will not tolerate unethical or illegal behavior toward anyone—customers, suppliers, employees or the company itself.

While you may not be as strict as Walmart, you should write and post a code of conduct that clearly spells out the rules for employees and the repercussions for not following them. Give the code to everyone upon hire, and periodically thereafter, and require written acknowledgement that they have read, understand and agree to comply with it.


Police: Employee admits to stealing $14,500 from Kohl’s

A Sun Prairie woman admitted to stealing $14,500 from the Madison department store at which she worked, according to a release from Madison police.

Police said Rebecca A. Onstad, 27, said she stole merchandise and faked returns for store credit to support her family during some tough times in the past year.

Onstad worked at Kohl’s at 2602 East Springs Drive.

She was arrested Monday on suspicion of felony theft.


What Smaller Retailers can Learn About Loss Prevention

One of the biggest challenges the UK retail industry currently has to face is shrinkage. While sales are steadily growing – they increased by 3.9 per cent year-on-year in January, according to the British Retail Consortium (BRC) – stores are still facing losses from the old enemy of theft.

A recent infographic commissioned by SECOM Plc shows shoplifting and more serious retail theft is becoming more and more of a problem. While the number of incidents is falling, their cost to businesses is rising as more valuable items are targeted. In 2014, the cost of crime to the UK retail sector was £603 million, a rise of 18 per cent compared to the year before.

However, this figure does not take into account a number of other factors that have a much greater impact on smaller retailers. Each theft is not equal; stealing an item from one store can cause significant issues, while another might be able to absorb the loss easily.

Many small retailers only employ a handful of people and operate relatively informally, meaning they don’t have many policies in place regarding things like pricing, inventory and employee conduct. It may seem like these things are fairly low priority, but in actual fact having policies like these in place can significantly reduce shrinkage.

Background checks and What to Look for

theft (1)When hiring  a new employee and you need to do a background check, Do you know what you need to look for to make sure you have the right candidate?  First of all, you need to be knowledgeable about the laws regarding background checks in your state.  What Washington seems reasonable, may not quite cut it for California and vice versa.   Due you due diligence before attempting to do a background check without knowing the Ins and outs of the law.  Make sure that your process about hiring and doing background checks are consistent throughout the company, you do not want to be the target of an employee discrimination lawsuit because of different treatment to different possible candidates.

Read more by following the links below.



Retail Industry Update, No. 3, September 2013: EEOC Loses (Again) On Criminal-Background Checks

 Last year, we wrote about the EEOC’s then-new guidance on the use of criminal-background checks in hiring decisions. [“Using Conviction Records As A Screening Tool,” Retail Industry Update, June 2012].  In December 2012, the Commission issued a strategic enforcement plan that included targeting background checks as a barrier to employment of minorities. In June of this year, the Commission trumpeted the filing of lawsuits against Dollar General and BMW North America claiming their use of criminal convictions in hiring violates Title VII.

But these latest lawsuits were not the EEOC’s first attempt to challenge an employer’s alleged blanket use of criminal-background checks in hiring. In 2009, prior to the publication of the latest guidance, it sued Freeman Companies in federal court in South Carolina alleging that the manner in which Freeman used background checks had a disparate impact on minorities. Recently, the district court sent the EEOC packing with its tail between its legs.


 The Background Check Checklist: Avoiding Pitfalls in Screening Process

There was a time when employment background checks were reserved for those entering very specific careers; government jobs with access to sensitive information, those working closely with children or finances and a handful of other public-facing corporate positions.

But in the last two decades, technology has made conducting background checks faster, cheaper and more convenient for employers. According to data from the Society of Human Resource Management, 73 percent of employers use criminal background checks on employees.

Job applicants applying for almost any level of position in nearly every industry are far more likely to have to pass a background check as a pre-requisite for employment. For example, employers in the transportation, health care and retail industries often use background screening services of consumer reporting agencies.


 Our Brave New World of Employment Background Checks

With unemployment stubbornly high, even a small problem can be enough to keep you from getting a job. And thanks to modern technology, employers are a lot more likely to be aware of these problems. Obviously a prison record has always made it hard to find a job. A poor credit report can blackball you these days. And today the New York Times reports on a new breed of databases that track retail employees accused of stealing:

Retailers “don’t want to take a chance on hiring somebody that they might have a problem with,” said Richard Mellor, the [National Retail Federation’s] vice president for loss prevention.

But the databases, which are legal, are facing scrutiny from labor lawyers and federal regulators, who worry they are so sweeping that innocent employees can be harmed. The lawyers say workers are often coerced into confessing, sometimes when they have done nothing wrong, without understanding that they will be branded as thieves.


What You Need To Know About Background Checks

image3-NEOBIZMAG

Many small businesses think twice about hiring a new employee, especially if that business is going through a rough time.  The actual cost of hiring a new employee is expensive, and not only because of the salary they will be paying.  Recruiting and training alone will be costly, not to mention the time spend for interviewing the possible candidates.  Hiring the right candidate can become quite an ordeal, but by doing background checks on an employee before hiring them can save you time and money in the long run.


 Class Action: Amazon Violates Federal Law With Employee Background Checks

 Amazon.com Inc. and a staffing company that aids the online retailer in its hiring are facing a class action lawsuit, alleging that they have violated federal law because they did not disclose the information found in a background check that was used to deny employment.

Plaintiff Gregory Williams claims in his class action lawsuit filed on Wednesday in Washington state federal court that Amazon and Staff Management Solutions, which is also called SMX, violated the Fair Credit Reporting Act (FCRA).

Williams claims that he applied for a job with Amazon as a “puller” at one of the online retailer’s distribution centers in November 2013. SMX helps Amazon with hiring at its fulfillment centers primarily in anticipation of seasonal hiring.

As part of the application process, Williams also filled out a form giving SMX the authority “to obtain his consumer report for employment purposes.” That form stated that if anything is found in the background check that could affect his employment that he would be given a copy as well as an explanation of his rights under the FCRA. It also stated that the information can be disputed if the applicant deems that it is inaccurate.


Georgia Background Checks: What you need to know

There are a number of ways for employers to gather information on the background of an applicant for employment. Employers may simply call an applicant’s former employer to confirm the applicant’s dates of employment and title and to try to obtain a more detailed reference from a supervisor. However, more and more frequently, employers are hiring third parties to conduct background checks on applicants who have been offered employment. In addition, depending on the nature of the position, employers are requesting reports about an applicant’s driving record, criminal record, and/or credit history. There are often legal limits on employers obtaining and using this type of information. When employers hire a third party to conduct a background check or obtain reports from outside agencies, such reports are subject to the federal Fair Credit Reporting Act (FCRA) and state laws. In Georgia, employers must comply with laws concerning criminal background checks and driver’s record information.


Background Check Industry at a Crossroads: Raising Uptime Standards

Why does uptime matter?

In today’s lightning-paced business climate, companies and organizations in virtually every industry are paying more attention than ever to the speed, efficiency and dependability of the systems, software and other support tools that enable them to serve and retain customers and thrive in an increasingly competitive global economy. It’s an era of Google, Amazon and smartphone-enabled instant gratification, and we expect immediate answers to all of our questions and same-day shipment of every conceivable consumer product. And companies’ system availability, or uptime,makes this all possible.

Companies are also under heightened scrutiny from regulators, and from their own internal auditors, to meet stricter accounting and reporting guidelines, to prepare for every possible disaster scenario that could disrupt their business or their customers’ business, and to operate more efficiently in everything they do. Uptime is at the very core of all these concerns.


How Are You Preventing Shoplifting?

shoplifting5There is always so much debate about how to fight shoplifting in the retail industry.  There are loss prevention teams in all the major retail stores, and the management team at any other store is, if not trained at least aware of what to do when facing a shoplifting accident.  Millions of dollars are lost due to shoplifting, and the matter seems to get bigger every day.  New government policies are making sure shoplifting is punishable accordingly, and retail stores are spending millions of dollars in security and personnel to fight this crime, but why is that not enough?  Follow the links to read more about this and other stories. 


Shoplifting & Loss Prevention: Do We Need A Fresh Look?

Traditional Loss Prevention is not working. If it was working, the retail world would not still be suffering $35 million or more a day in losses. If it was working, retail owners and store directors would not be going through security and loss prevention officers or the security companies they represent like the free samples they often hand out to customers. Security experts and loss prevention companies would not be constantly scrambling for new accounts, or be in conflict with the accounts they service.

Shoplifting is one of the least detected and most unreported crimes. Stock control in many stores is so deficient that few retailers know how many goods they are losing to shoplifters or their own staff. Statistically, so long as shrinkage does not exceed 2-3% of goods sold, retailers pay little attention to shoplifting. There are also financial incentives for managers to increase the bottom line profits. The bonuses they receive are often based on profit margins, and paying for security services can be a drag on profits. Managers are under constant pressure to justify expenses in a corporate world driven by profit.


Shoplifting Prevention: Top 5 Tips

Shoplifting is of major concern to vendors, so much so that it’s considered normal to budget 10-15% in losses due to store theft. This means each honest customer is paying 10-15% more due to the sins of his fellow shoppers. This budget figure can be reduced by one of your company’s most important assets: Your employees. Real, live, people. While we recommend security cameras, computerized security tagging, door security guards, and even undercover security personnel, this article will address how your employees – often the most involved people with your customers – can also be involved in shoplifting prevention. Here is a Top 5 list of suspicious behavior often exhibited by shoplifters, all of which are easily spotted by employees.

      1. Baggy or oversized clothing. There’s reason it’s called “baggy” – shoplifters are using their clothes as veritable bags, stuffing their stolen ware on their person as if it’s part of their wardrobe.
      2. Hands in pockets, or hidden otherwise. A regular shopper has nothing to hide. In contrast, a shoplifter has everything to hide.
      3. Teaming Up. Shoplifters might hang together when planning or passing along stolen items. If you see two or more people in a group speaking in low tones, looking over their shoulders, diverting their eyes, or of course, stuffing their or others’ pockets, it’s a sound suspicion of illicit activity. Regular shoppers, on the other hand, will likely happily chat away at full volume, and keep their non-purchased items in full view.

Japanese organization considers shared biometric database to combat shoplifting     

The National Shoplifting Prevention Organization (NSPO), a nonprofit organization of major Japanese retail businesses, is considering developing a biometric database to share facial recognition data in order to combat shoplifting across Japan, according to a report by The Japan News.

The NSPO said it would consider allowing retail stores to share the facial data with other stores in the same industry or other establishments in the region.

The organization proposes to set up a shared biometric database, and store managers can enter the facial data of shoplifting suspects into said database to continually monitor the suspects as he or she visits other stores.

Many retail stores have been using biometric technology in the past five years, however, the majority establishments that use facial recognition do so without publicly notifying any of their customers.


Employee Theft

theft (4)Employee theft according to the research done by many independent companies, is the number one reason stores across the  country lose profits.  A loss prevention team can help you address the issue and solve it, but most often than not, the theft that is happening in your store can go undetected for many months, or even years before your or your loss prevention team is aware of it.  Training and educating your loss prevention team could save you thousand of dollars every year by making sure they attend workshops or seminars that keep them aware of the happenings of loss prevention every year.

Follow the links below to read more about this topic.


U.S. retail workers are No. 1…in employee theft

Light-fingered employees cost American stores (and consumers) more than shoplifters do.

It’s almost Groundhog Day, but for retailers, the holiday season is finally winding down.

“The four months from October through January are when stores see not just their biggest sales volume of the year, but also the most returns and exchanges,” says Ernie Deyle, a 30-year veteran of the retail loss-prevention wars who leads the business consulting practice at London-based data analytics firm Sysrepublic. “Unfortunately, the same four months account for about half of all annual shrinkage.”

That shrinkage, made up of missing goods from shoplifting and other causes, costs U.S. retailers about $42 billion a year, according to the latest Global Retail Theft Barometer, an annual industry study led by Deyle and inventory management firm Checkpoint Systems.


 What Wal-Mart U.S. Executives Learned By ‘Walking The Store’

I began my career in the grocery business as a bagger. During that time I observed that my boss, and sometimes his boss and some other senior executives, would “walk the store”. These walks provided the opportunity to perform visual inspections to see what was going right and wrong with the store. We all understood that we needed to be on our toes in case someone from headquarters decided to pull a surprise visit. This is exactly what the senior management of Wal-Mart (NYSE: WMT) U.S. recently did.

Eight months ago Greg Foran took over the U.S division of Wal-Mart, which has struggled with hit and miss same store sales ranging from -1.5% to positive 2.4% over the past five years. He and his team decided they were going to make it their top priority to understand the business under their charge and that included store visitations. On Apr. 1, they gave investors a strategic update indicating that Wal-Mart U. S. may be losing its grip in executing some basic common sense retailing principles. Let’s examine.

Empty shelves

One of my bosses in the grocery industry had a saying, “we sell groceries not real estate” in reference to empty shelves, with the underlying implication that shelves need to be full of merchandise so that customers can buy it. Customers aren’t interested in the air above empty shelves. Greg Foran noted some occurrences of empty shelves and full backrooms in some of the stores he visited:


Group steals bags of cash from D.M. stores, police say

A group of thieves distracted employees at four grocery stores over the weekend and stole bags of cash, including $10,000 from one business, police say.

Three females and a male would enter a store and pretend to buy items while distracting employees to another part of the business, security video shows. One of them would then steal from behind the counter or an office.

They robbed La Cruz 3 and El Palomino on East 14th Street and La Favorita on East Grand Avenue on Saturday. Saigon Market on Euclid Avenue was robbed Sunday morning, according to police reports.

“They seem to be targeting mom-and-pop type places. Businesses like QuikTrip and Kum & Go have rules about dropping off cash once they get to a certain amount,” said Sgt. Jason Halifax of Des Moines Police Department. “It may suggest the suspects had prior knowledge of how the businesses handle cash.”


The Tricks of the Shoplifter

shoplifting4Managing or owning a retail store is not easy.  Shoplifters and employee theft are in some instances a daily occurrence, and the profits you were thinking you were getting have disappear.  The digital age has brought information to the young mind easily and instantaneously, and although some use it for the benefit of their mind, others use it to cause harm and to commit crimes.  Have you checked the videos on Youtube about how to shoplift?  From how to shoplift and not get caught, to instructions on how to prepare before shoplifting.  Yes, your shoplifting prevention team has to be aware of these tactics to be effective apprehending shoplifters.

Follow the links below for more information.


Video:

How To Shoplift Without Getting Caught Using a “Thief Book”


Female shoplifters caught on camera

Several supermarkets have complained that social customs enable women to steal with impunity.

Muhammad Hamouda, sales manager at an electrical accessories company, said 70 percent of thefts in his shop are made by females, primarily stealing women’s accessories.

Most thefts are monitored on closed-circuit TVs, which have also revealed various tricks of these thieves, particularly women with large handbags into which laptops, devices for hair and body care can be concealed. Only female security staff at supermarkets can deal with women thieves.

Hamouda said: “Mostly shops do not complain to police, but demand a written confession with a copy of her identity card, and then let her go free. But there are also shops that make her pay double the price of the article she shoplifted and she is prohibited against stepping inside the shop in future,” he said, adding that some ladies deny the charges and threaten to call the Haia as a means of defense.

Muhammad Asiri, a salesman in Asir, said there were suspicious disappearances of women’s accessories such perfumes, vanity bags and rings, discovered at the end of the month. Guards do not notice anything because the missing articles were mostly light and can be easily hidden. Occasionally there are gangs of women involved in these thefts, Asiri said.


 Confessions of a teenage shoplifter


The Costs of “Wardrobing”

theft (10)According to the National Retail Federation’s annual survey, it is estimated the industry loses approximately $9.1 billion yearly in return fraud.  This includes refunds on merchandising that has been stolen and a practice like “wardrobing” that is costing retailers this incredible amount. Those incidents are done by employees as well as shoppers and shoplifters.  To read more about this topic follow the links below for more information.


NOT-SO-HAPPY RETURNS: RETAIL FEDERATION HIGHLIGHTS “WARDROBING” COSTS

In a new survey, the National Retail Federation says that holiday-return fraud could end up costing stores billions this year. The worst part? This scam is more organized than ever.

The holidays are over, but stores big and small will be dealing with more than the memories.

That’s according to the National Retail Federation (NRF), which reported late last month that during the holiday season alone, retailers could face as much as $3.8 billion in lost revenue from fraudulent returns, an increase from $3.4 billion in 2013 and a big chunk of the estimated $10.9 billion in return fraud in 2014 as a whole.

The organization’s 2014 Return Fraud Survey [PDF], which gathered responses from loss-prevention executives at 60 retailers, shows that retailers suspect that 5.5 percent of holiday returns are fraudulent. And while technology has helped curb illegitimate returns, NRF said, there’s only so much companies can do about retail fraud, which is often suspected to be the work of crime rings.


Eliminate the Practice of Wardrobing in Your Store

Well here’s a new one to me.  The art of wardrobing.  It’s a term coined for shoppers who buy merchandise with the full intent of using it, then returning it for a full refund.  Take a read of the article as the insight is fascinating.

I was astounded to learn that “nearly two-thirds of merchants had items wardrobed in 2007, up from 56 percent the year before, the first year the National Retail Federation (NRF) started tracking the trend,” according to the article.

The term wardrobing was chosen (I’m guessing) because it stems from clothing that’s been purchased, worn and then returned.  But the article points out that wardrobing has taken on a broader meaning and is now applied to any merchandise that’s been used and then returned.

So how big is wardrobing?  The article points out that “Wardrobers want to rent the things they want or need for free, which amounts to fraud, said Richard Hollinger, a criminology professor at the University of Florida who specializes in retail theft. He said return fraud, which includes wardrobing, fake receipts, and other practices, cost retailers an estimated $10.8 billion last year, up from $9.6 billion in 2006.”


RETURN FRAUD COST 9.1 BILLION IN 2013

Criminals trying to get refunds on stolen merchandise and customers engaged in practices like “wardrobing” cost retailers an estimated $9.1 billion in return fraud last year, according to NRF’s annual survey.

“While coverage of this issue paints return fraud as one of the less severe retail crimes, the fact of the matter is that returning used or stolen merchandise — or even using false tender to purchase items — is fraud, period,” NRF vice president for loss prevention Rich Mellor said in a release accompanying the survey. “Efforts to combat fraudulent activity are slowly starting to work, but criminals are becoming more savvy and technologically advanced in their methods.”

The dollar amount of fraud was up 2.8 percent from 2012, but the proportion of returns believed to be fraudulent (3.4 percent) remained the same. During the just-finished holiday season, fraud totaled an estimated $3.4 billion.

Fraud was experienced by virtually all retailers, with stolen merchandise involved in 95 percent of cases. Employee fraud accounted for 93 percent of incidents; 69 percent were returns of items purchased with fraudulent payment like stolen or counterfeit gift cards. Wardrobing — where customers typically purchase a dress for a party or a big-screen television for the Super Bowl and return the item after it has been used — accounted for 62 percent.


E-Commerce Fraud:What You Need to Know

theft (13)With the digital age came different types of fraud retailers were not used to encounter in their daily operations.  Shoplifters came to the store and the loss prevention team knew the policies and procedures to follow to apprehend the shoplifter.  Now, retailers fear online fraud and debate on how to keep customers information safe.  The most prevalent fraud retailers are to be aware of is card fraud. Keeping cardholder’s information safe is a top priority for online retailers, and monitor suspicious transactions has become a top priority for them.

To learn or read more about e-commerce fraud follow the links below.


e-Commerce Fraud: The Rapidly Growing Challenge for Retail Investigations

Just as the word “e-commerce” has come to refer to a menagerie of different specialized markets, so e-commerce fraud comes in many different guises. And as the great pace of retail evolution dictates that retailers’ transaction processes are constantly changing, so the frauds change with them.

In a bid to stand on the top of the heap competitively, retailers are offering as many options to consumers as possible when it comes to ways to buy. You can place an online order at an in-store kiosk to be shipped to your house. You can place an order from your mobile device to be picked up at a local store. You don’t like the color of the new curtains you ordered through the online customer rewards program? You can return them to the nearest brick-and-mortar store to save on shipping.

There are multitudes of different ways for customers to shop in the modern omni-channel retailing world. But this proliferation of transaction processes can leave behind more and more holes that malicious actors can exploit. “You have this almost complete melding of digital and physical worlds now, and the primary challenge is keeping pace with that evolution,” said Jerett Sauer, director of loss prevention at Gap Inc. “Awareness of risk has always been a core part of any great LP program, and historically, digital space was outside that sphere of awareness; the focus was on people touching a POS or physical merchandise.


Kount and Ethoca Join Forces to Help Ecommerce Merchants Eliminate More Fraud, Accept More Orders

Kount, a leading provider of fraud detection and sales boosting technology, and Ethoca, the industry standard for collaboration-based technology solutions that help card issuers and online merchants increase transaction acceptance and stop ecommerce fraud, today announced a strategic partnership to help ecommerce merchants increase their overall acceptance levels.

Ecommerce merchants aim to strike a delicate balance: eliminating as much fraud as possible, while maximizing the acceptance of good orders. With the increasing frequency of data breaches and online security threats, many ecommerce merchants are tightening their fraud tools to stop as much fraud as possible, but that often results in too many good orders that are wrongly rejected and result in lost revenue.

Through its partnership with Ethoca, Kount now offers merchant customers worldwide an additional, complementary service with Ethoca Alerts. These alerts provide a safeguard to catch fraud that has already been confirmed between the card issuing bank and the cardholder.


Smart Card Technology Will Affect Your Fraud Prevention Strategy

With large retail chains like Target, Neiman Marcus and Michaels experiencing massive data breaches, U.S. banks and brick-and-mortar merchants face serious pressure to increase credit card security measures by implementing smart card technology.

This shift to more secure card-present transactions at physical, smart-card ready terminals will impact ecommerce sites as fraudsters are stymied at brick-and-mortar stores and turn their attentions to card-not-present (CNP) transactions online.

As smart cards become standard in the U.S., forward thinking ecommerce merchants must prepare for the coming increase in online fraud. Now is the time for software companies to ensure that their fraud prevention system is ready.

Brick-and-Mortar Merchants Face Serious Pressure


ShopliftingTricks You Should Be Aware of For Preventing Shrinkage

shoplifting3

Haven’t you heard in police shows on TV how you have to think like a criminal to catch a criminal?  Well, in shoplifting prevention you have to know the methods these criminals are using to be able to protect your merchandise and your employees.  There are shoplifting rings that are professional and make their living stealing.  They may target a specific store or chain of stores, but they always have a plan and different people working to steal as much as they can without getting caught.  The shoplifting prevention team in your store may not be aware of some of these “methods,” and being aware of them may be the difference between a profitable store or one that is constantly loosing money.  For more news about this topic, follow the links below.


Suspects arrested after aluminum foil used in shoplifting

SNOHOMISH — Money-making schemes are a popular topic of conversation among the criminal community. One such scheme ended in three arrests earlier this month in Snohomish. A group of suspects was accused of working in tandem, using aluminum foil to defeat anti-shoplifting devices.

The trick is widely known among heroin addicts who pilfer goods to support their habit, Police Chief John Flood said. He credited the Nov. 2 bust at the Snohomish Station Kohl’s to increased anti-shoplifting patrols and proactive store security.
Snohomish police started seeing thieves trying the foil ruse about a year ago, Flood said. The crooks wrap bits of foil around the security tags.


Dubai shoplifters’ tricks: Cut magnetic tags

Two Egyptians, who allegedly fled with garments they stole from a shop after removing the magnetic tags, returned after 45 minutes to steal more, the Dubai Criminal Court heard.

AM, 27, truck driver and HS, 28, clerk were noticed roaming around in a well-known store by a security staff.

“I noticed two Arabs roaming around in the shop and kept an eye on them. They picked up a pair of shoes and a T-shirt and one of them entered the trial room while the other waited outside. Then the man came out of the room without the shoes and the garment.

“The two then stepped out of the shop and as the security device did not beep, I thought they had left the T-shirt and the shoes in the room,” the security staff told investigators.

However, the two returned to the shop after 45 minutes and picked up a pair of jeans, a wallet and two pair of shoes.

“One of them entered the dressing room and after they stepped out of the shop, the security gate did not beep this time too. I followed them and caught them near their car while calling police. When asked about the stolen items, they replied that they are in the car,” the security man said.


Retail Profiling Lawsuits: Businesses Would Rather Lose Merchandise Than Detain Potential Shoplifters

SAN FRANCISCO (KPIX 5) — Retailers lose $45 billion dollars annually to theft, about $10 billion of that to shoplifting.

Yet the last thing stores may want to do is catch a thief.

Chris Mcgoey knows all the tricks. He’s been in the loss prevention business for almost 40 years. On an undercover tour of a big box store he showed us how shoplifters stash things and how to pick out what he calls “likely candidates”, like women with big purses in shopping carts. Or shoppers with baby carriers.

Mcgoey admits it’s profiling. “It’s not based on race, religion, sex, age, any of those, it’s really based on behavior.  But he says these days some retailers would rather lose the merchandise than detain anyone. “America is  just shaking in their boots, they are scared. If you stop someone and they haven’t stolen anything you are sued.”

Earlier this year Barneys in New York paid half a million dollars to settle accusations it was singling out minority shoppers. The state launched an investigation after 19-year-old Trayon Christian sued the store for detaining him and questioning his ability to pay for an expensive belt.


Video Surveillance In Your Store

shoplifting2Surveillance in your store can be a big deterrent for shoplifting and employee theft.  The knowledge that your store is protected, or at least that there are cameras capturing images of employees and customers, can help you save thousand of dollars yearly.  Employee theft is costing the retail industry millions of dollars every year and installing a type of security in your store can help you reduce the shrinkage you are experiencing.

For more about shoplifting, follow the links below.


Surveillance best cure for shoplifting

Aside from the holiday seasons where people aimlessly weave through cart-to-cart traffic down aisles in department or convenience stores, it’s difficult to predict when there will be spike in theft.

Particularly, shoplifting.

As of Friday, the Hutchinson Police Department has worked two cases of shoplifting this month. Granted, only nine unpredictably cold and not-so cold days have scooted by in March. But January and February were hot months for shoplifting with officers responding to 61 combined reported cases of shoplifting, according to Hutchinson Police bulletin archives.

There were 24 reports of shoplifting in December. Numbers from the archive bulletin suggests the shoplifting occurs at three of the most recognizable stores in the city: Wal-Mart, Dillons and various Kwik Shops.

Hastings, Target, J.C. Penney and Kohl’s are also sprinkled on the list of popularly shoplifted stores.

But why the heart-monitor like spike in thefts recently? Police Lt. Martin Robertson isn’t sure of the answer himself.


US based company allows shoplifters to avoid the police by charging them for an online course

IN THE game of Monopoly, there’s nothing better (apart from maybe winning free parking) than turning over that community chest card to see the words “get out of jail free.”

Now imagine that someone hands you that card after you’ve committed a criminal act in real life.

That is essentially what one company based in the United States is doing.

The Corrective Education Company (CEC) is a start-up, and works with businesses to offer shoplifters an alternative path to reform other than the boring old legal system.

Founded by a pair of Harvard graduates, it offers the chance for apprehended shoplifters to pay $411 ($US320) in order to avoid a phone call to the boys in blue.

That money goes towards the cost of attending an online course which is run by CEC that claims to reduce the likelihood of recidivism for the individual.

The obliging shop owners who refer the shoplifters get a cut of about $US40 per offender, and according to Slate around 20,000 offenders have so far coughed up for the program.

That works out to be $7.2 million that CEC has profited by blatantly circumventing the established judicial system.


Walgreens Shoplifting Duo Captured On Surveillance