It’s Official! Employee Theft Still a Problem

August 2, 2011 by Leave a Comment

Preliminary reports from the National Retail Security Survey indicate that employee theft makes up the largest category (over 43%) of overall retail theft in the country.  The amount attributed to internal theft in the one-year period of 2010 is $16.2 Billion.

Retail theft overall was up just over 10% to $37.1 Billion.

Large retailers and small retailers have problems with employee theft.  The larger retailers generally have the luxury of an in-house team of investigators and auditors to stay on top of most situations, and to quickly detect and provide a comprehensive employee theft investigation to rectify the issue.

This is an asset most small business owners don’t have because the number of employees as the large retailers, so the episodes of internal theft occur too infrequently to justify such an expense.

That doesn’t reduce the pain when employee theft hits the business, however.  As a matter of fact, the pain is worse for the smaller retailer because the thefts generally go on for a longer period without being detected, and the amount of theft is proportionately higher to the revenue.

An employee theft investigation is not something that is to be undertaken by an amateur.  Smart businesses have relied on an experienced loss prevention investigator that is available on a case-by-case basis to assist in alleviating the problem.

One of the mistakes small business owners make is the decision to undertake their own employee theft investigation.  Generally, they are too close to the employees and to the business operation to objectively analyze the problem.  Better to employ the loss prevention investigator to determine first how widespread the problem is, who is involved, gather the evidence and stop the bleeding.

Don’t contribute to the national retail theft statistics.  Stop your problem before it severely affects your profits by contacting an experienced loss prevention investigator the minute you suspect employee theft.

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

 

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Employee Theft Destroys Profits

August 2, 2011 by Leave a Comment

Many retailers can’t understand the true costs of employee theft. It goes much deeper than the simple act of theft itself. Employee theft destroys profits, hurts employee relations and can change the entire atmosphere in the store.

Employee theft investigation is an important part of the retail environment. Even if the managers don’t believe their employees are stealing or causing loss, the chances are much greater they are. In my time as a loss prevention professional, I have seen stores closed, positions eliminated and many other restrictions or reductions due to internal theft. It is serious stuff.

It’s not just a plaque at the store level, internal theft or employee theft is also seen at the corporate level. From simple office equipment theft to more intelligent crimes (or white collar crime) are unfortunate and regular occurrences. White collar crime is sometimes difficult to investigate by persons not experienced in these types of issues, or is maybe a little shy at poking around higher level corporate employees. It’s always recommended when conducting corporate fraud investigation to bring in a corporate fraud investigator. Typically, a corporate fraud investigator is very skilled in this level of employee theft and will work hard to ensure every confidential employee theft investigation is given the highest level of attention and closure.

In stores, internal theft (like corporate fraud investigation) should be investigated as quickly and thoroughly as possible. Gathering information both verbally and visually is a good start. As a manager or business owner, these steps are crucial at maintaining an enjoyable and attractive atmosphere for both employees and customers alike.  No one wants to believe they have bad employees, but the cold hard truth is, you do. Help your business, protect your assets and keep your employees satisfied.

Visit the Retail Loss Prevention Store.

For more information on corporate fraud investigation, corporate fraud investigator, employee theft investigation, internal theft or white collar crime contact us at employee theft or call 1.770.426.0547

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Prevent Shoplifting Through Increased Employee Awareness

August 2, 2011 by Leave a Comment

Many retailers look for new ways to prevent shoplifting, when some of the answers are right under their own noses. A well informed employee can make all the difference in the world.

Working in stores for years as loss prevention, I have seen the different levels of involvement from store employees. Most of the time, the employees don’t have a clue as to what shrink is, or what causes the biggest losses in their stores. Employees want to be involved with helping the store increase sales. They want to feel like they are part of the team and that their work is actually making a difference and benefitting the store.  However, many managers either refuse to inform employees or believe they themselves can prevent shoplifting.  These efforts take a combined team working towards the same goal, to prevent shoplifting.

As a former store manager, I was well in tune with loss prevention and every morning I held rally meeting and discussed loss prevention related topics. I would share with them the store shrink number and the hottest theft merchandise. I would also explain to them what shrink was and how it affects the store, overall. I especially more specific if I had a new hire with me. I am proud to say that when I first took over this metro store, the shrink was in excess of 5.5%. In two years, I took that number down to less than 1.5%. The biggest contributing factor to this dramatic reduction? Employee awareness. My employees worked to prevent shoplifting from happening, and enjoyed the challenge.

Any store, no matter how big or small can have the same results as I did. Stay dedicated to your work, sell merchandise and make sure your employees are well informed on how to prevent shoplifting.

Visit the Retail Loss Prevention Store.

 For more information contact us at prevent shoplifting or call 1.770.426.0547

 

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Clothing Alarm Fends Off Would-Be Thieves

August 2, 2011 by

It is truly an inspirational sight. When a clothing alarm activates and scares off the thief. Sometimes, when I visit stores, I’ll take a few minutes to listen and watch for an activated clothing alarm.

Clothing security has always been of huge importance to me. Both from a loss prevention viewpoint and as a store manager, I wanted clothing security. Nothing made me go crazy more than walking into a store and seeing an empty display shelf or rounder missing a large section of clothing to theft. Working in the retail industry, and more specifically, the clothing industry has shown me just how ruthless some thieves can be.

The introduction of security tags on clothes was probably one of the greatest gains in clothing security. Years before clothing security tags were rolled out, many retailers used old cables and sometimes chains to keep their high value merchandise in the stores. What an inconvenience those things turned out to be! I remember trying on a leather jacket with this clumsy, tangled mess of security cable attached. As a customer, I was done. Security tags on clothes took away that mess and allowed the store to protect their merchandise and keep the merchandise accessible to the customer… the best of both.

A sporting goods store I once worked for had rolled out security tags on clothes on some new, high risk merchandise. Before the roll out, it was anticipated that unprotected, the merchandise would experience high loss. The store manager decided prior to attaching the clothing security tags, he would put out some merchandise and see what happens. Sure enough, the manager put out two sections of the high risk items and before he left for the day, an entire display was gone, and not by sales. After that, he never put high value merchandise on the salesfloor without the protection of security tags on clothes.

Visit the Retail Loss Prevention Store.

For more information on clothing security, clothing security tags or security tags on clothes contact us at clothing alarm or call 1.770.426.0547

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Policies – Not Police – Stop Employee Theft – Atlanta Georgia

July 30, 2011 by Leave a Comment

In yet another case of employee theft, our client, a non-profit company, accepts donated items for resale at a chain of thrift stores.  The client asked us to investigate a suspected employee theft committed by a long time office employee who was suspected of accepting donations, converting them to her own use, then selling the items for cash to relatives and friends.  The client had received an anonymous tip, alleging internal theft by the employee.

The employee theft investigation revealed that the employee had recently taken a phone call from someone offering to donate an automobile.  Instead of going through proper channels for accepting donations, she contacted a friend and had him go to the donor’s location and retrieve the car, which was then taken to her residence.  She then sold the car, paid her accomplice, and kept the rest of the money.

After being confronted with the evidence gathered during the employee theft investigation, our investigator interviewed the employee.  During the interview, the employee admitted to prior instances of internal theft, twice involving donated automobiles.  The employee said that she had received payment totaling $3600.00, which she offered to repay as restitution.

She was turned over to the Auto Fraud Unit of the local police department.

Our recommendations to this client included a strict segregation of duties for each employee.  This employee was able to steal these three cars undetected because her duties included both taking telephone calls offering donations, arranging for the pick up of the items, and checking the items in.  We suggested that these duties be allocated to no less than two employees and that regular audits be conducted on incoming donations.

This company was able to stop this employee theft and recover part of its losses because it did not dismiss an anonymous tip as unfounded just because they “trusted” the employee.

In another wise decision, they left the employee theft investigation to the experts.

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

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Think like a shoplifter to prevent shoplifting!

July 30, 2011 by Leave a Comment

It can be much more challenging to prevent shoplifting than most people realize.

You have to sometimes put your self in the thief’s shoes and for an honest business owner it can be difficult. If you really want to effectively prevent shoplifting you need to be able to think like a shoplifter.

 You know product is walking out your door without being paid for and you just can’t seem to grasp how? Well put yourself in the shoplifters shoes and see if you can figure it out. Sometimes all it takes is a different perspective.

 Here are some tips for what to look for:

 1)     What type of products are going missing? Are they small items that can be slipped into pockets? Is it clothing? Is it possible that several things are going missing at once disguised as other things, perhaps slipped into boxes of larger items?

2)     Where in your store are things going missing from? Is it an area or possibly multiple areas that aren’t frequently passed by sales clerks? Behind high shelves? In corners?

3)     When are you noticing things are gone? Is it the end of the night when you’re sales people are cleaning and find tags on the floor or in shelves? Are you noticing lots of empty clothing hangers around your fitting rooms or empty spaces on shelves? Or does it not show up until inventory time?

 When you start looking for these types of clues it becomes increasingly easier to identify solutions and prevent shoplifting in your business. You may have shoplifters enter your business but by noticing these things you can be better equipped to protect your merchandise from their sticky fingers.

 Visit the Loss Prevention Store for products to help you prevent shoplifting in your business.

 For more information on how you can prevent shoplifting contact us or call 1.770.426.0547 – Atlanta Georgia

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Clothing Security Has its Own Problems

July 30, 2011 by

Providing clothing security for ready to wear merchandise has always posed a problem for retailers.  The merchandise has to be openly displayed so that customers are able to flip through it, touch it, feel it, inspect it, match it, and compare it.

Customers also want to try the merchandise on in most case to be sure that it fits correctly, which requires them to be left alone with the merchandise for a length of time.  They may also carry the merchandise around with them while they continue to shop and browse.

Too often, this merchandise ends up being stuffed into a handbag, shopping bag, or pocket and becomes a shrink statistic.

Too bad the merchandise can’t scream, “I’m being stolen!” as it leaves the store.

Actually, it can.  Security tags on clothes can make that announcement.  Clothing security tags are attached to the merchandise before it is placed on the sales floor for display.  The purpose of the clothing security tags is ultimately to prevent the merchandise from being shoplifted.  The final step in the anti shoplifting effort is that when the merchandise that is being protected by the clothing security tags passes through the exit, it activates an EAS (Electronic Article Surveillance) system designed to detect the presence of the security tags on clothes that pass in its vicinity, which in turns emits an audible alarm alerting store associates that a protected merchandise is leaving and requires attention.

Another benefit of the clothing alarm and clothing security tags is that its presence acts as a warning to potential shoplifters that their odds of committing a successful shoplifting just went way down.  Unless the security tags on clothes are removed by an employee with a special tool, the clothing alarm is going to sound and alert the store that a shoplifting is in progress.

No shoplifter wants that kind of attention, and will usually choose a retailer that doesn’t use clothing security technology.

Visit the Loss Prevention Store to purchase a clothing alarm or clothing security tags.

For more information on clothing security, clothing alarm, or clothing security tags contact us at security tags on clothes or call 1.770.426.0547

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What Are You Doing to Prevent Shoplifting

July 28, 2011 by Leave a Comment

It’s happening in your stores, have you thought about ways to prevent shoplifting?  Many retailers are in the same boat as you. Shoplifting is happening in stores, yet most have done nothing to prevent it. Well, one of the easiest and probably the most beneficial ways to prevent shoplifting is by using checkpoint systems.

I walked into a store in downtown and looked at the installation crew and the new checkpoint systems. The store had been without any real protection since the store staff was reduced to a bare operating minimum. Recently, the store had seen a spike in shoplifting activity, and we felt the problem would only get worse without any form of protection. Negotiating with the corporate office to install a checkpoint system was a fairly easy task. We explained what was going on, how the store was dealing the rising issues and what checkpoint system could do to prevent shoplifting.

The project was finished. Almost as soon as the power was turned on, the store noticed a dramatic decrease in the amount of shoplifting incidents. Prior to the installation, the store continuously complained of shoplifters. Today, the store is operating well, loss has been reduced over 3% Year to date, and a great deal of the reduction is directly attributed to the use of Checkpoint systems.

As consultant, travelling from store to store, when I walk into a building the first item I look for are the antenna of the security system at the front of the store. If I see the system in place, I’ll test its usage. Almost any store I see using these types of theft prevention systems are thriving and experience lower levels of theft. If you are in the position to purchase checkpoint systems, don’t wait, do it today.

Visit the Retail Loss Prevention Store.

 For more information on checkpoint systems contact us at prevention shoplifting or call 1.770.426.0547

 

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Security tags on Clothes Work To Keep Profits In Stores

July 28, 2011 by

Putting security tags on clothes can really help maintain profitability and makes a really good store plan. Believe it or not there are still many retailers that attempt to operate their business without any form of clothing security, putting both the overall store safety and profits in jeopardy.

How can clothing security or clothing security tags affect store safety? It’s pretty straight forward. When you have a clothing business and the merchandise is easy to steal, meaning there are no security tags on clothes, you will attract shoplifters. In the shoplifter community, there is communication via websites, books, personal and other forms that identify stores that are “easy”. Through this spread, the unprotected store becomes a target for theft and more. Increasing the instances of grab and runs or persons wanting to get away from the manager that’s confronted them, they flee, knocking down customers, assaulting employees and more.

Don’t be the irresponsible retailer. As a loss prevention professional, I have seen many shops lose valuable merchandise, profits and growth all because they refused to buy into any clothing security. In fact, had these stores simply put clothing security tags on their merchandise, much of the issues in their stores could have been prevented.

Simply put, clothing security tags offer a conspicuous presence to both the consumer and the thief. One of my favorite forms of clothing security is the clothing alarm. As clothing security tags go, a clothing alarm is tops in protection. You can be on one side of your store, and the second a thief tampers with or attempts to remove the clothing alarm, an audible alarm activates making the thief immediately flee.

If you are in the business of turning a profit, consider clothing security and security tags on clothes.

Visit the Retail Loss Prevention Store.

For more information on clothing alarm, clothing security or clothing security tags contact us at security tags on clothes or call 1.770.426.0547

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Prevent Shoplifting – Change Attitudes?

July 26, 2011 by Leave a Comment

Part of every retailer’s focus is to prevent shoplifting, which is the literal theft of the business by people who should know better.

 What goes through a shoplifter’s mind when he or she makes the decision to steal?

 First, the shoplifter has to rationalize the intent.  Is it inconvenient to have to pay for the merchandise?  Is the merchandise too expensive?  The store has so much, they won’t miss this one.  Whatever the shoplifter’s excuse is has no validity to the retailer, because it’s out and out theft to him.

 Next, the shoplifter’s attitude has to be such that what he is about to do is OK because of a lax attitude of his peers, or lack of moral education (stealing is wrong, but shoplifting is not so bad).

 Finally the threat of being caught has to be considered low or the penalty for being caught is minimal, and the merchandise being stolen (or the act of shoplifting by itself in some cases) has to be perceived as worth the risk.

 Realistically, attempting to prevent shoplifting by the retailer can only concentrate on the final factor.  The retailer must increase the risk of being caught, or increase the penalty for the apprehended shoplifter.  He can do very little to nothing about the shoplifter’s rationalization or his attitude.  Those intangibles have to be learned in the home or through other avenues that instill a sense of right and wrong.

 There are ways to increase both the chances of catching the shoplifter and to create the perception that apprehension is likely, or at least more likely at one particular store than another.

 Some stores post signs warning that shoplifters will be prosecuted, and follow through with the promise when the opportunity arises. 

 A better alternative is to prevent shoplifting in the first place.

 There are various means that retailers can use to reduce shoplifting:  increased staffing, merchandise placement, locking displays, reduced exposure of desirable items, closed circuit television, and audible alarms are common measures.

 Ultimately, it’s up to the retailer to decide how far he has to go to prevent shoplifting in his own environment, because attitudes are unlikely to change.

 Visit the Loss Prevention Store for products to help you prevent shoplifting in your business.

 For more information on how you can prevent shoplifting contact us or call 1.770.426.0547 – Atlanta Georgi

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