Signals that indicate employee theft – Part 7 of 10 – Atlanta Georgia

December 1, 2010 by Leave a Comment

Signals that will expose possible employee theft or internal theft with goods or money.

  • Certain salespersons who, with a certain regularity, certainly higher than average, are found to have accepted false or stolen credit cards or other false documents. This often indicates collusion. In exchange for accepting the false card or document the salesperson may add an extra amount to the invoice. The difference is subsequently taken from the till without a loss showing.
  • The discovery of non-branch products on the premises can indicate the presence of a private-shop-within-a-shop. For their own account, one or more employees buy products for cash and sell them on. Barmen/maids may also bring their privately bought bottles and sell them at bar prices, pocketing the income.
  • A employee that is involved in internal theft is often recognised by his or her own deviant behaviour. Exaggerated preparedness to do extra or work overtime have already been mentioned, but note also a reticence to delegate, or not to take holidays or only take short ones. Delegation or absence could lead to discovery.  Someone keeping everything locked up when other employees would not, or breaking off telephone conversations when someone approaches may be indications of fraud.
  • If a company closes for an annual holiday period, the amount the fraudster has ‘lost’ during the enforced holiday period will often be made up during the days after a return to work. The result is a sharp increase in the company’s losses during this period.
  • If a sudden rise in telephone or Internet costs is noted, it may be a good idea to ask for a specification or check the computer log. This may reveal visit to pornographic sites or telephone numbers, or surfing the net at the company’s expense.
  • Sometimes physical characteristics play a role. The most frequently seen in perpetrators whose motive is prestige is the possession of company keys or a key-card with general authorisation. Such a person derives status with every jangle of their key ring or use of the card.

All types of employees can be involved in employee theft or internal theft . Do not over look someone who does not have access to cash. Could they be submitting falsified expense reports, or stealing your customers credit card numbers. Employee theft and internal theft can also show up in the relationships your employees have with Vendors and Delivery People.

I know I keep saying this but remember it is less expensive to have an over all prevention program in place and conduct an occasional employee theft investigation than the other way around. Most of the time an employee theft investigation only takes a day or two but prevention is still the key.

Watch for more parts to come in future blogs!

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

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Clothing Security Tags Prevent Theft

November 30, 2010 by

Checkpoint Systems clothing security tags  are great tools in the arsenal of retail theft prevention.  These clothing security tags are available in different colors, sizes and options for tagging high end / boutique clothing that you do not want to puncture with the typical pin attachment.

How the checkpoint clothing security tags work is via RF (radio frequency) circuitry built into them that will react to the checkpoint security systems antennas installed at entry and exit points for the purpose of retail theft prevention.  The  clothing security tags will generate a signal when they are positioned in range of the checkpoint antennas and set off the alarm.  This will alert staff of the potential theft occurring and also alert the shoplifter that they are in trouble.

Less retail loss due to theft means more product available for sale and studies show that equates to a boost in sales.  Price Waterhouse Coopers recently found just under 10% increase in sales with one retailer who installed a checkpoint security system.

Less losses also mean boosted profits.  Loose one $10 item and it will take the average retailer an additional $500 in sales to earn enough profit to recover from the loss.  If you  stop shoplifting losses the effect on profit margins are easily 50% to sometimes 100% increase in net margins.

Using a checkpoint security system will also increase employee awareness of potential shoplifters keeping more eyes on your merchandise and processing issues more effectively.  Systems like this will send a message through the shoplifting community that the retailer is serious about retail theft prevention and the thieves will move on to other unprotected stores.

To learn more visit:  clothing security tags 

 

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Past Behavior Revealed in an Employee Background Check

November 30, 2010 by

Past Behavior Revealed in an Employee Background Check

How much do employers expect to find out from an employee background check?

Realistically, that depends on the depth and scope of the investigation, but the answer is that there is plenty that can be determined from even the most basic of background checks.

The first example is the information that can be obtained from a criminal background check.  Determine which jurisdictions are most likely to yield information and center your search there, whether it’s a county court search or a statewide repository.

The results will provide the employer with facts that will be useful in making the hiring decision.  No record found?  Great, the applicant has had no serious issues with the court.  Remember that juvenile records are generally not released to the public.

Misdemeanor conviction?  As a rule, these less serious violations probably won’t prevent an employer from hiring an applicant unless the charges are for theft or battery.  A felony conviction might preclude hiring someone as a matter of policy.

Also revealed might be tendencies toward violence (fighting, battery, assault); drug or alcohol abuse (possession, distributing, DUI, possession of alcohol under age, public intoxication); or other detrimental behavior (fleeing or obstructing police, disorderly conduct, trespass).

Although past behavior may be an indicator of future acts, it’s important to remember that the employee background check should be considered only as a part of a larger process in determining the suitability of a candidate.  Always look at the circumstances and relativity of any facet of the results when making the hiring decision.

Questions about employee background checks?  Call 770-426-0547 or click here for more information.

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Understanding differences in security and loss prevention

November 30, 2010 by Leave a Comment

As a loss prevention professional I run into retailers and business owners on a regular basis who get a little confused about the differences between security and loss prevention.  These two areas work together and are typically different systems, and sometimes are the same thing.

Wiki defines loss prevention this way: “loss prevention (in some retailers known as asset protection) is a form of private investigation into larceny theft. The focus of such investigations generally includes shoplifting,package pilferage,embezzlement, credit fraud and check fraud. “Loss prevention” or “LP” is used to describe a number of methods used to reduce the amount of all losses and shrinkage often related to retail trade.

Usually when I introduce myself to a retailer they say “we have a security system”.  See the disconnect in the wiki definition and the response?  Security personnel or burglar alarms are tools used in a loss prevention plan to accomplish the goal of preventing theft.  You could say that these tools are the tactical side and the program is the strategic side.

Left alone with no one actively using these tactical tools, like a camera system, results are often minimal at best.  Camera systems do not deter amateur thieves because they know no one is constantly watching them, if they are even turned on.  Burglar alarms are not armed during business hours when shoplifters are active.  Employees know the systems from the inside and known how to defeat them.

Consider consulting a loss prevention security professional to get an assesment of your current situation and recommendations of how to position yourself to prevent theft both internal and external.

For more information visit:  security and loss prevention 

 

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Signals that indicate internal theft – Part 6 of 10 – Atlanta Georgia

November 29, 2010 by Leave a Comment

Signals that may point to possible employee theft or internal theft with goods or money. Do not forget you must train your employees what to look for. They will help you prior to an employee theft investigation .

  • An increased frequency of reports of faults in delivered goods.
  • Faults noted by the same employee despite other personnel carrying out the same checks.
  • Personnel repeatedly fail to follow instructions such as daily bank deposits of cash.
  • The seeming forgetting of important daily tasks such as switching on the alarm, closing doors, or storage of expensive property in special cupboards being followed by a break in or ram-raid.
  • Branch employees ‘forget’ to report losses or other unusual events or are repeatedly the ‘victim’ of an unfortunate incident or circumstance.
  • Checks or opening and closing times show deviations such as extremely early or late times, whether or not on the same day every week.
  • Opening the premises during closing times to show round family and friends etc.
  • Ringing up packed goods of various quality and cost for the same price.
  • Giving the customer various goods but only passing the cheapest article past the scanner. Security measures are removed and all articles are bagged as normal.
  • Allowing theft by acquaintances and when the alarm at the exit sounds has a ‘friendly’ (security) colleague carry out the bag check.
  • The salesperson attaches a bar code for a cheap article to their wrist and scans this but acquaintances take dearer articles. Also in this case the till display window is often covered or turned away.
  • The giving of reductions by the salesperson to the purchaser without this reduction being registered and the article subsequently being returned for the full amount.
  • Third parties such as suppliers, collect-clients and drivers are discovered at business locations where they should not be, promptly followed by a report of shortages that are put down to the unregistered visitor.

Employees that steal will not wave a flag that says here I am. You have to watch and be on the lookout at all times. Internal theft or employee theft will be hidden from your view. It will also be made to look like something else such as a mistake. Do not be mislead look for employee theft or internal theft beyond the “facts” you are given. Do not be afraid to ask questions and demand answers. In most cases what you find will then require a quick employee theft investigation to dig the reat out.

Watch for more parts to come in future blogs!

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

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Problems with Retail Shrinkage? Try Checkpoint Security Systems

November 29, 2010 by Leave a Comment

Retail shrinkage is a growing problem around the world today. Retailers are always looking for the best solution to protect assets and boost profits. One of easy and most obvious is adding anti shoplifting equipment like Checkpoint Security Systems.

A growing chain of supermarkets in the south learned the value of a Checkpoint Security System after recently opening a new store and experiencing retail loss as high as 10%. The store management had no clue how or why these numbers were so high, but the corporate office wanted, needed, demanded answers.

Loss Prevention Consultants worked with the store team to develop shrink reduction efforts in store and recommended several tools to help combat the retail loss . Of those solutions, the Loss Prevention Consultants recommended the first step to control loss was to install a Checkpoint Security System. Shoplifting was a large portion of the overall store’s retail loss and had a huge impact on the morale of the store.

Daily the store management team was told of customers that come into the store and “shelf sweep” entire sections of the store, then get out of the store almost completely unnoticed. Checkpoint Security Systems are designed to prevent customer theft by being an obvious, audible and conspicuous deterrent to reducing acts of shoplifting.

The store decided to go with a Checkpoint Security System. The program was rolled out and Checkpoint labels were placed on merchandise deemed high loss. Additional anti theft devices were placed on areas like liquor and some electronics. The Loss Prevention Consultants also recommended using a loss prevention agent to help monitor customer theft activity as well.

As time went on, the loss prevention program created by this team of Store Management and Loss Prevention Consultants should a dramatic return on investment. Within the next inventory cycle, retail shrinkage was cut down to 3.3%, a dramatic decrease in one year. A large portion of this reduction was directly related to the installation of a Checkpoint Security System.

For more information about retail shrinkage visit us at retail loss or call 1.770.426.0547 – Atlanta Georgia

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No Celebration at the Party Store Employee Theft Investigation – Atlanta Georgia

November 26, 2010 by Leave a Comment

Senior Management of a party supply store contacted Loss Prevention Systems, Inc to conduct an employee theft investigation because the cash shortages “were starting to get out of control.”  The manager’s register was found to be $50.00 short in cash and a review of the day’s detail showed nothing unusual on that day.

The front-end manager stated that on that day she had opened the register without counting it down, assuming that someone else had done it.  Furthermore, after logging on the register in the morning, she had not logged off until that afternoon, meaning that someone else may have had access to the register to ring sales without having to sign on.

Our investigator determined that there were only two employees other than management working on that day, and both were interviewed.  The first was cleared through the interview.

The second admitted during the interview that she had taken the $50.00 and that she had taken cash on several occasions for the past three months.  She did this by ringing bogus sales to open the register and then removing the cash. She also confessed to stealing greeting cards and stationery for her own use and giving away food and drinks to other employees.  She stated that she was currently on probation as a previous employer had prosecuted her for employee theft .

The store’s manager terminated her employment and later took a warrant for the employee’s arrest for theft.

Discussion:

How do you know that your managers manage?  This employee theft investigation revealed that the manager failed to do two things that provided opportunity for employee theft : Counting down and documenting the amount in the register at opening and closing should be done 100%.  Every employee who rings on a register should use his own number and log off when not actually at the register.

This employee had not checked the box on the application that asks, “Have you ever been convicted of a crime?” but obviously this store did not conduct a background check, or they would either have not hired this person at all or would have kept a closer eye on her if they had hired her.

Policies and procedures should be written and communicated to all employees, and followed to reduce opportunities like these from occurring.

Employee theft is a never-ending battle. Make sure that your management is not allowing it to occur because of lax enforcement of Policy and Procedure or training. It is cheaper to follow the rules than have to accept the employee theft losses.

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

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Controlling retail shrinkage before it controls you! Atlanta Georgia

November 26, 2010 by Leave a Comment

It is sometimes interesting to look at the items that a shoplifter may choose to steal.  My team recently apprehended a shoplifter that took a lot of what you’d expect to see taken from a large retailer such as ours – makeup, cologne, etc.  She also took Kool-Aid.

Retail shrinkage is unpredictable.  While we can theorize on what a potential shoplifter may want to take from your business, there is no way to be 100% sure what will draw the attention of a thief.  That is why it is imperative to have good loss prevention procedures and training in place – to boost those profits and reduce the retail loss .

Retail shrinkage is also a very broad descriptor of loss.  It is, essentially, anything and everything that can possibly create a loss to your business.  This can be employees, vendor errors, shoplifters and paperwork errors.  Anything that creates a loss of profits by lost merchandise or assets.

Experts in the field of loss prevention can analyze your business and its practices, and develop plans to narrow that broad spectrum of retail shrinkage into a workable concept for you.  Once the type of shrinkage is narrowed down to what is occurring in your business, then you can begin to combat this retail loss , one shoplifter, employee thief, or dishonest vendor at a time.

For more information about retail shrinkage or retail loss contact us or call 1.770.426.256 – Atlanta Georgia

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Prevent Shoplifting NOW!

November 26, 2010 by Leave a Comment

Shoplifters, which amount to one in every ten people that walk in your door, are stealing from you. Why are you allowing it? It is so simple to prevent shoplifting . Do not wait any longer and let even more of your hard earned money slip out the door. To stop shoplifting you need to address the following points:

  • Your Attitude! If you believe that you can’t prevent shoplifting then you won’t. Shoplifters are criminals that steal if YOU give them the opportunity. You will never stop every single shoplifter. But you can create an environment where your good customers like being in your store, visiting with your employees and purchasing your merchandise. At the same time shoplifters will find that the environment is very hostile to them. This is true even if both a good customer and a shoplifter are standing next to each other.

 

  • Your Environment – Customer service is the key. Customer service is the foundation weapon you use to prevent shoplifting . Customers love it, like it can’t get enough of it. Shoplifters hate it and will actually avoid customer service. A good customer that has entered your store is looking for help. That’s why they are there. They enjoy being noticed and paid attention to. In many cases that is why they are in your store as opposed to a large retailer where customer service is basically non-existent. Shoplifters need privacy to steal, don’t give it to them.

 

  • Tools To Help – We know that even with the best customer service provided by trained highly motivated employees that you cannot be everywhere at once. The shoplifter knows that to. So if they can create a distraction or slip away then they have you. Not unless you have an Electronic Article Surveillance (EAS) system. Your more vulnerable merchandise is tagged or labeled. If the shoplifter is able to conceal the product it will trip the sensors at the doors when they try to leave.  But this will ONLY work with a combination of good customer service and EAS.

Don’t let your hard earned sales or merchandise walk out the door with out payment just because of your attitude or lack of preparedness!

For more information about Electronic Article Surveillance, shoplifting or shoplifting training contact us at prevent shoplifting or call 1.770.426.0547

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Retail Loss Prevention and Check Fraud – Atlanta Georgia

November 26, 2010 by Leave a Comment

The scope of retail loss prevention can often be far reaching. Not only does it include preventing shoplifting and internal theft but, in an attempt to continually reduce shrink it often includes prevention of several kinds of fraud. One of the most common kinds of fraud out there today is check fraud. Advancements in technology and desktop publishing software have made it possible for would-be criminals to print their own checks or manipulate legitimate checks to their benefit.

There are several different kinds of check fraud. Those of us in retail loss prevention need to be aware of the different kinds so that we know what to look for. The first kind is forgery; this usually happens when a criminal steals a check, signs it, and then presents it for payment at a retail establishment. These individuals will usually use some sort of bogus identification or try to get away without showing any ID at all. The second kind of check fraud is counterfeiting; this is when a criminal uses desktop publishing equipment, scanners, high-speed printers, etc. to fabricate a completely false check.

Alteration is when an individual uses chemicals and solvents to remove or modify information on a legitimate check. This can be done to specific information on a check or to the entire document. The term ‘check kiting’ refers to the practice of opening accounts at two or more institutions and using “the float time” of available funds to create fraudulent balances. This type of fraud has become increasingly popular in recent years. Your retail loss prevention team should make themselves aware of all the types of fraud and stay abreast of new developments in order to properly combat the criminal element.

For more informationabout security and loss prevention or loss prevention security  contact us: retail loss prevention or call 1.770.426.0547 Atlanta Georgia

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