Identifying thieves: How to prevent shoplifting – Atlanta Georgia

January 14, 2011 by Leave a Comment

Shakespeare wrote in Hamlet “One may smile, and smile, and be a villain.”  This is a point that I press upon my employees when teaching them to prevent shoplifting within our business.  I don’t believe that everyone is a thief…but in order to prevent shoplifting your employees have to know how to identify and deter the shoplifters that frequent your establishment.

I ask my newly hired employees “what does a shoplifter look like?”  In response to this question I usually receive a variety of interesting answers.  Some employees already have the insight to know that there is not a “look” to a shoplifter.  Any person that walks into your store could be a shoplifter, whether they are young or old, male or female, etc.  In order to prevent shoplifting and reduce your losses employees need to observe customer behavior and identify when a customer may be acting suspiciously.

A person intent on shoplifting will take note of exits, the merchandise they would like to steal, and where the employees are located in the store.  He or she will notice secluded corners and choose these areas to conceal your merchandise.  Shoplifters may work in pairs so one can distract an employee while the other steals.  Shoplifters may also select merchandise quickly without really “shopping” i.e. looking closely at the item, or the price.  When your business is training employees to prevent shoplifting , these behaviors need to be brought to their attention.  Noticing simple behaviors can speak volumes as to the intent of the customer.

I recently visited with my employees that apprehend shoplifters at the company I work for.  I had studied 2010’s statistics and noticed that our average shoplifter age was pretty young – late 20s.  I reminded my employees, as all business owners should do, that anyone, of any age, might be a shoplifter.  Just because she looks like your Grandma doesn’t mean she isn’t a shoplifter. 

Their actions must be what we listen to when identifying a customer’s intent to shoplift.  Train on these technique, and prevent shoplifting in your business.

For more information contact us:  prevent shoplifting or call 1.770.426.0547 – Atlanta Georgia

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Retail Shrinkage in High Risk Areas – Atlanta

January 13, 2011 by Leave a Comment

Retail shrinkage is defined as a reduction in inventory due to shoplifting, employee theft, paperwork errors and supplier fraud. These contributing factors increase exponentially when your place of business happens to be in a high risk area. What is a high risk area? Depending on where you live it may simply be a popular mall or busy part of town with enough foot traffic that a would-be shoplifter can easily blend in. More often it is a store located in a somewhat undesirable part of town; some place where the socio-economic status of the surrounding community lends itself to an increased crime rate.

Over time I have worked in a number of these types of places attempting to reduce the retail shrinkage in particular stores. As a result I’ve become acquainted with a number of drug addicts and boosters.

I consider these to be your 2 biggest problems in this type of area. Drug addicts steal either to maintain their high or to eat (any money they do make legitimately goes to drugs). They are often impaired at the time of the theft so they may or may not remember even being apprehended, arrested, etc. This is a problem because they may be back the very next day, unaware of what happened previously.

The real enemy of retail shrinkage is the booster. Unlike the drug addict they are fully aware of what they’re doing and normally consider it a business. Like any good businessman they make it a point to perfect their craft, know the industry, your limitations, etc. and exploit them in any way they can. In poorer neighborhoods boosters can regularly sell your merchandise for half of the price that you do. After all, they stole it so whatever they make is all profit to them. Your retail loss is their retail gain.

If you’re going to operate a business in a high risk area you need to make yourself aware of the causes of retail shrinkage in these areas. Do not let retail loss make your year of poor profits

For more information about retail loss contact us at Retail Shrinkage or call 1.770.426.0547 – Atlanta Georgia

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Risks of the Loss Prevention Investigator – Atlanta Georgia

January 13, 2011 by

The job of Loss Prevention Investigator can often be a dangerous one. We deal with sections of society that are often desperate and potentially violent. Therefore, one must always be prepared for the worst when attempting to apprehend a shoplifter. Most of the time the shoplifter who lashes out or begins to fight is simply trying to get away, but occasionally you’ll find those who have some sort of point to prove. In certain cities it is part of gang initiations, and some subjects are so impaired by drugs or alcohol that they barely know what they’re doing. A loss prevention investigator must keep all of these possibilities in mind.

In 2004 one of my detectives spotted an entire family (mom, dad, teenage daughter) concealing merchandise in several large bags that they were carrying. As they prepared to exit the store we positioned ourselves to apprehend them. My detective stopped the mother and daughter with little incident, however the father ignored him and kept walking. I approached the man and calmly tried to get him to stop and return with me inside to discuss the incident. Suddenly he turned to me brandishing a 5” knife and lunged at me. I managed to quickly sidestep the attack.

Due to the foolishly high level of testosterone that usually runs through my body I briefly thought about retaliating. However, becoming a human shish kabob has never been a dream of mine so I simply stepped away and allowed the man to escape. I immediately contacted the police, giving them his description and his vehicle’s license plate number. Within minutes he was arrested and taken to jail. In court I learned that the docile-looking family man was a diagnosed paranoid schizophrenic with a history of violent criminal activity. Who knew? The loss prevention investigator must remain ready for anything.

For more information about loss prevention agent or loss prevention consultants contact us at: Loss Prevention Investigator or call 1.770.426.0547

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Security Tags on Clothes

January 13, 2011 by

Security tags on clothes are one of the many different tools utilized by loss prevention professionals around the globe in an attempt to reduce shrink. However, it’s not enough to simply install these devices and walk away. Sure, they are definitely a deterrent, especially to the novice shoplifter, but these devices can be circumvented. So for them to be useful they need to be coupled with vigilance and knowledge.

There are numerous internet sites that teach people how to remove security tags on clothes . Most of these sites aren’t there to cater to the shoplifter and their needs. On the contrary, they are there to assist the legitimate customer who has gotten home after purchasing a garment to find that the salesperson neglected to take the tag off. Do you think shoplifters read these sites too? Is a polar bear’s nose cold?

In response we, the retailer, need to make sure that the security tags on clothes are securely fastened and that the clothing alarm is operational. Next, train all of your associates to respond to all clothing alarm events. I suggest creating a log. Every time the clothing alarm is triggered there should be a corresponding entry on the log with a brief description of why the clothing alarm went off (i.e. false alarm, customer too close, shoplifter, etc.). Far too often an overactive clothing alarm system lulls associates into a mindset of simply ignoring the alarms. This is the perfect situation for shoplifters. Security tags on clothes are a great way to combat external theft if they are used vigilantly.

For more information about clothing alarm or clothing security or clothing security tags contact us at Security Tags on Clothes or call 1.770.426.0547

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Minimizing Internal Theft – Atlanta Georgia

January 12, 2011 by Leave a Comment

The sad truth is that internal theft accounts for two-thirds of theft businesses experience. It ranges from pilfering pens and pencils to grand larceny. Employees carry out theft in a number of different ways. Sometimes items are slipped into pockets, pocketbooks or briefcases with little or no forethought; and sometimes an individual might plan ahead, hide when the business closes, then carry out their crime in secret, without having to worry about being seen. Whatever the particular mode stealing is stealing and in order for you to run a profitable business you must minimize internal theft as much as possible.

The first step is to screen and select new employees carefully by using reference checks, credit checks, psychological tests and personal character examinations. Once you bring someone aboard watch them closely and check receipts daily. Believe it or not there are individuals out there who will take a position just for the opportunity to steal from that particular company. They usually don’t waste time getting down to business so you better not waste time catching them. Next, you should adopt a standard of excellence in conduct and performance. Encourage your employees to be the best and take pride in their jobs. People who feel pride in their work accept responsibility for their performance and are far less likely to jeopardize what status they’ve worked for.

Use key controls, time locks, changing locks, alarms and security guards to discourage dishonest employees. Nobody wants to be outted as a thief, use that fear against the would-be thieves. Supervise trash pickups, and occasionally check trash collection sites and trucks. Collusion between dishonest employees and trash men is not uncommon. In fact, one of the most common ways in which to steal something is to simply throw it away then come back after hours and fish it out of the garbage. Keep up on trends and stay alert to what’s going on in your organization and these tips will help you minimize internal theft .

For more information about employee theft , employee theft investigation  or corporate fraud investigation contact us at internal theft or call 1.770.426.0547 – Atlanta Georgia

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Employee Theft – What Is The Primary Cause? – Atlanta Georgia

January 12, 2011 by Leave a Comment

We know from long experience in the loss prevention field that there are many reasons that employees steal.  Greed, want, need are all reasons. We as employers can do little to effect the reasons except to do the best we can to screen out potential problems such as candidates with poor criminal histories; candidates that have a poor credit history who may be handling our money and drug abusers top the list

But what are the CAUSES of employee theft ? In the 2010 Global Fraud Study by the Association of Certified Fraud Examiners the leading primary internal control weakness is…”Lack of Internal Controls”. In organizations with less than 100 employees it amounts to 47% (over 100 employees equals 33.7%). There is not even a close second.

Keep in mind that the cause is something that we as business leaders have complete control over. Yet business appear to do little or clearly not enough to protect the fragile margins we have. I believe that there are two reasons for this.

Number one is that it seems in many cases there is a lack of strong leadership. The kind of leadership that people understand and respect. An understanding by employees at all levels that strong controls that the company has in place will not under any circumstances be violated and that such violation is not open to interpretation. The violation of these procedures will be met with strict and immediate punishment at all levels. This draws a line in the sand.

Number two is that even when that line in the sand is drawn we find it to hard or we are too busy to maintain it. Because of this that line in the sand is quickly washed away by the waves. We then find ourselves a year later scratching our heads trying to make sense of why another serious employee theft or series of employee theft incidents have occurred.

Want to bring employee theft under control once and for all? Make your line in the sand a granite wall with no compromise that the waves will not affect.

For more information about employee theft ,  employee theft investigation , internal theft or corporate fraud investigator contact us or call 1.770.426.0547 – Atlanta Georgia

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Background Check Experts Advise – Check In-Home Service Workers

January 12, 2011 by

Background Check Experts Advise – Check In-Home Service Workers

Homeowners generally assume that anyone sent by a company into their home to do work might assume that the individual has been checked out thoroughly by the employer’s background check company .  But the fact is, the person actually sent out to do the work may actually not be an employee of the company hired by the homeowner, but a contract employee.

Many homeowners will ask the company if they have checked their employees.  Often the answer is that they are all “bonded and insured.”

Employees and contractors may be bonded and insured, but this means very little if an in-home worker damages a homeowner.  Background check experts will tell you that there is no better indicator of future behavior than the past.  The bond and insurance only tells the homeowner that he will receive damages only if theft or other harm can be proven in court.  Wouldn’t it be easier for all concerned to avoid all this if it was possible to do so?

There have been far too many instances when an in-home service worker such as an exterminator, duct cleaner, or delivery person has used his job as a means to identify a target who later becomes a victim of his actions.  These instances have included serious crimes such as burglary, rape, and murder.

Although the homeowner may trust the company she hires to do the work, can she be certain of the person actually performing the work?  The answer to this question is no, but the homeowner should insist that anyone sent to her home should be thoroughly checked by the company’s background check experts, to reduce the chances that something might happen.

Need help from background check experts in Atlanta, Georgia?  Call 770-426-0547 or click here.

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Creating a Team Environment to Prevent Employee Theft – Atlanta Georgia

January 10, 2011 by Leave a Comment

Employee theft is a problem for many organizations; one that can single handedly put you out of business if you’re not careful. So, do we ensure that the people who we hire as our greatest assets don’t turn into our ultimate downfall? The answer is ownership. You need to build a team environment; one where your employees feel that they have an actual stake in the success of the business rather than it just being a paycheck. Your employees’ attitude about their workplace will depend largely upon whether they feel they are being treated fairly by management.

In order to reduce employee theft you need to treat your employees as well as your customers.  The old saying “the customer’s always right” may be a good mantra to go by, but that doesn’t make your employees wrong by default. Always show them the proper amount of respect. Keep employees involved in the success of their department and store.  Profit sharing, bonuses or gift certificates can go a long way toward giving employees a sense of ownership and pride in the business. Be mindful of the environment you create. Threats, criticism or unreasonable workloads will not help your business.  Disgruntled employees look for ways to strike back and they normally do so in your pocket book.

Work with employees on how to respond to a shoplifting situation in a manner that won’t make them feel at risk. Make sure they understand their own limitations and the limitations of the law in circumstances of shoplifting. Acknowledge employees for doing things right, rather than just catching them doing something wrong. You’d be surprised how far you can actually get with the carrot rather than the stick. Preventing employee theft is everyone’s job so make everyone feel involved in the process and you’ll see the difference in your numbers.

For more information about employee theft investigation or internal theft contact us at employee theft or call 1.770.426.0547 – Atlanta Georgia

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Why Do Companies Conduct Background Checks?

January 10, 2011 by

Why Do Companies Conduct Background Checks?

It’s now a given that most companies conduct background checks of some type on their prospective employees.  But what motivates them to budget for this portion of their pre employment screening program, beyond interviews and a basic application review?

For some, it is a policy requirement because management determined that in order to acquire the type of employee that fit their expectations, further checking into the applicant past was necessary.  Some do it because “everybody else” is doing it, and have made the decision that conducting background checks would be beneficial for their company as well.  And some do it because they were previously burned by a (former) employee who hurt the business by improper actions like theft, attendance, poor performance, or one of many other reasons that could have been reasonably anticipated through the application of a check conducted by a reputable background check company.

The latter case, being harmed by an employee, is by far the most painful to the company.  In many instances a poor choice of employees could and should have been prevented by including background checks in the hiring process.   It is a case of reacting to a problem rather than taking a proactive position to prevent the problem in the first place.

Which sounds like the better business decision?

Employee background checks are an affordable and simple insurance policy to reduce the risk of harm to a company by making a bad hire.

Explore your options in background checks by calling 770-426-0547 or click here for further information.

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Early Warning Signals Of Employee Theft – Atlanta Georgia

January 7, 2011 by Leave a Comment

Failure to properly implement or follow company policies and procedures is almost always a factor in how employees steal. Before you decide if you need an employee theft investigation and to prevent employee theft , internal theft review the following points:

  • Refunds/Returns
    – No management approval
    – Only one employee verifying merchandise
    – Not requiring a receipt
    – Management approval after a transaction is completed
    – Not requiring identification
  • Cash Theft
    – Management failure to recognize and respond to the early warning signals of internal theft . Contact us if you would like a copy.
    – Management failure to follow up on daily register shortages               – Unrestricted use of one cash drawer by multiple
    associates or failure to use mid-day cash audit
    – No such thing as “borrowing” of cash. Borrowing equals employee theft

– Lack of controls on cashier identification numbers
– Unrestricted “no sales”
– Management failure to track and question “no sales”
– Cash left unsecured and unattended
– Daily bank deposits not made
– Safe left open or left on “day lock”
– Consider removing $20 bills and larger to drop box (also deters robberies and grab & run)

 

  • Merchandise Theft
    – Management failure to recognize and respond to the
    early warning signals of employee theft. Again contact us if you would like a copy.
    – No management control at receiving room or dock doors
    – Management failure to recognize employees giving away merchandise
    –  Associate packages not checked
    – Associates not observed as they arrive at and depart
    from work
    – Failure to notice empty boxes and packages on the
    sales floor
    – Fraudulent discounts

 

  • Voids
    – No management approval
    – Management approval after the transaction is completed
    – Missing or inadequate explanations on documents
    – Cashiers allowed to use supervisor’s register keys/codes

 

  • Office Environments
    – Petty cash left out, unattended or unsecured
    – Not conducting a weekly-unannounced audit of petty cash
    – Not securing company checks and back stock at all times
    – Not auditing the back stock of company checks
    – Not requiring two signatures on a company check
    – Not cross training or switching job functions around periodically (eliminate sacred territories)
    – Not conducting a periodic audit of Account Payables
    Does the vendor really exist?
    Are we over-paying?
    Do orders look reasonable?
    Did we receive what we paid for?
    – Not conducting a periodic audit of Account Receivables. Are all payments accounted for and did they make it to the company’s bank account?Are we overcharging customers? Where is that money going?
    – Are expense reports audited for reasonableness?
    – Do expense reports have printed not handwritten receipts?

Employee theft must be investigated. To not have an employee theft investigation conducted when you suspect employee theft invites more.

Want more information about employee theft or internal theft contact us at employee theft investigation or call 1.770.426.0547 – Atlanta Georgia

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