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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Protecting profits with the help of a Loss Prevention Investigator – Atlanta Georgia

November 26, 2010 by

A loss prevention investigator works to drive sales by proactively investigating many types of losses. As a retailer in the United States, you face many sales killing challenges including internal or employee theft and the brutalizing affect of Organized Retail Crime outfits.

Working a variety of stores from grocery to high end beauty products, I have seen the negative impacts of these types of losses. It is not a pretty site when a store closes because it simply cannot sustain the losses incurred as a result of poor inventory controls, employee theft and external factors. At times, these losses could have been mitigated simply by bringing loss prevention consultants and spending the money to counter these losses.

If a business is losing money, it is crucial to act fast and acknowledge the “hows” and “whys”. As loss prevention investigator , I was brought in to investigate a store experiencing shrink as high as 25%. This was a chain of about 50 stores, which were small boutique type no larger than 3000 sqft. Looking at other stores in the company, this was not the only one with high shrink, just the highest. I looked into everything starting with their receiving practices. I followed the delivery truck several times; I watched trucks being unloaded and audited the store’s receipts. Matching what I could, I found no issue that would lead to explain the losses.

Further, I conducted night surveillances, watching the closing crews and management. Now, any loss prevention investigator worth his salt could tell you that what I saw was cause for alarm. Management on at least 4 nights was in the store several hours past closing, alone. Not only is this a safety issue but offers ethical challenges. As a result of these poor controls, management took advantage.

Several nights of my surveillance, I witnessed the manager put box after box of merchandise outside the back door, near the emergency exit. As she left the building, she would simply drive around back and pick up here “prizes”.

In the next few days, as the loss prevention investigator , I interviewed the manager. She admitted to taking merchandise daily for the last year and a half. However, my investigation showed losses for more the 2 years, in fact, the same amount of time the manager had been with the company.

Work by loss prevention consultants would have stoped this problem before it started.

For more information about loss prevention consultants visit us at loss prevention investigator or call 1.770.426.0547 – Atlanta Georgia

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Using a Background Check Company is Smart

November 26, 2010 by

Using a Background Check Company is Smart

Companies do what companies do.  By that I mean that a company whose business is manufacturing clothespins probably does a great job at producing quality clothespins, but would not do so well if asked to make a wristwatch.  For that, a purchaser would fine a watch manufacturing company.

There are employers using other types of companies rather than a dedicated  background check company to provide various levels of background checks used in the hiring process.  Other types of companies include payroll processors, HR consultants, and private detectives.  All or these companies are great at what they do, but their main business is not background checks.

A background check company will keep its clients up to date on issues of compliance, be available to the client, and belong to a national professional organization such as the NAPSB, the National Association of Background Screeners.

A professional background check company will make available to its clients realistic turn around times because they know their providers and have good working relationships with them.

Your background check company will be dedicated to providing you with the best possible quality product and the best value because background checks are their business.

The background check company, because of the nature of its business, will be close to the source of the information employers need to make smart hiring decisions, and will deliver it quickly and economically.

Need a background check company?  Call 770-426-0547 or click here for information.

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Employee Theft…..Skimming and Larceny – Atlanta Georgia

November 24, 2010 by Leave a Comment

Money is the top target of employee theft schemes.  There are two cash theft schemes that employers need to understand, skimming and larceny.

Larceny and Skimming…sounds like two cartoon characters doesn’t it?  Unfortunately these two employee theft acts have much more devastating consequences for small businesses.

“Skimming” is considered an OFF BOOK fraud.  This means that the theft is conducted prior to the cash hitting the accounting ledgers of the business.  Because the money is taken before it is recorded, the employee theft cannot be traced through a direct audit trail.  That makes catching the culprit a little more difficult.   This affects persons of employ such as tellers, wait staff or anyone who handles cash transactions directly from customers.

“Larceny” is the taking of monies after it has been recorded.  One example of this is reversing transactions on a cash register. Employee theft may be committed by the person running the register by returning fictitious merchandise or voiding transactions.  This allows for the cash transactions in the register to appear lower than they are supposed to be.

Employees can also steal cash from the daily deposit.  This is a very common type of larceny.  Small business owners especially should be aware that if they allow employees access to bank deposits, the threat is very real that some of the cash from that day will not make it into the bank.

Worried about employee theft ?  Call us for advice at 1.770.426.0547 or contact us at employee theft – Atlanta Georgia

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Retail Shrinkage caused by an Honest Thief – Atlanta Georgia

November 24, 2010 by Leave a Comment

Retail shrinkage is not just the loss a business incurs from the merchandise that is shoplifted by customers.

I recently interviewed an employee that was accused of underringing – intentionally allowing a customer to leave her register without paying for all of the merchandise.  This cashier underrang for just one customer, a friend of hers, and it added up quick:  nearly $1000 in less than three months.

The sad thing is that the loss could have easily been higher.  What if she had multiple friends that she was doing this for? This type of retail loss is common place, and your profits fall victim.

Combating retail shrinkage has to be a priority for the business owner that wants to be profitable.

The amusing thing about this case is that the cashier did not feel that she did anything wrong.  She explained that she did not profit from this “theft”, and that she only did it because her friend asked. She assured me that she would never steal.  She admitted she could just not tell her friend “no” when the friend asked for this favor.

Unfortunately, this is not an unusual story.

Employees that cause retail shrinkage can often justify the loss that they are creating.  And that justification often sounds bizarre to us honest folk, but it is a justification nonetheless.  Justification that can overshadow any guilt or regret an employee might feel for creating a retail loss for your business.

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

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How to Prevent Shoplifting with Repeat Offenders – Atlanta Georgia

November 24, 2010 by Leave a Comment

Depending on the part of town in which you do business it may be slightly more difficult to prevent shoplifting than in others. The socioeconomic status of the surrounding area can seriously dictate the criminal propensity and moral ineptitude of your patrons. For example, several months ago I happened by a young man who was so busy stuffing merchandise down the front of his pants that he hardly noticed me. After my detective and I stopped him outside the store we realized why – the guy was higher than a bald eagles beak.

He sat in the office nodding in and out of consciousness and rambling incoherently until the police arrived and took him away. 2 weeks later he returned to the store. Once again he was high and smelling like a cross between a Grateful Dead concert and an angry mule. Once again he was arrested, but this time it only took 3 days for him to return. In all we had this young man arrested 7 times. It became evident that this tactic was not going to work with this individual. He had no fear of arrest or prosecution so it was nearly impossible to prevent shoplifting in his case.

Finally, we circulated a picture of the young man to every manager, clerk and security guard in the building with instructions to contact loss prevention the moment he was spotted. At that point we simply denied him entrance to the store and immediately escorted him off of the property. After several attempts he finally figured it out and no doubt took his shoplifting endeavors elsewhere. In cases of the drug addicted, extreme poor or mentally challenged the threat of arrest and prosecution is not enough to deter them. It is in these cases that it may become necessary for you to think outside the box in order to prevent shoplifting .

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

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Tips for Security and Loss Prevention

November 24, 2010 by Leave a Comment

We all know that shoplifting is a major problem for business owners, retailers, security and loss prevention . The following are just a few useful tips on how to combat shoplifters and therefore reduce shrink within your organization. 1st of all, keep a close eye on what goes on in your restrooms and fitting rooms. These are a shoplifters dream. They know you can’t have cameras in there so they use that knowledge to try to rob you blind. Keep unused checkout aisles closed. Many shoplifters will stalk back and forth repeatedly waiting for an opportunity to make a break for the door.

Security and loss prevention should also post anti-shoplifting signs. Let the crooks know that you’re aware of their presence and are equipped to stop them. Keep small expensive items like electronics or fragrances in locked display cases. Make sure your store associates know what to do in the case that they spot a shoplifter. Security and loss prevention should instruct them on what numbers to call or ways to contact them and what they are and are not permitted to do in order to deter a shoplifter from leaving the premises.

Plain-clothed personnel should be patrolling and watching the store continuously. Turn over all apprehended shoplifters to the police. Trust me, this is every shoplifter’s first time if you listen to them. Word gets around. Have them arrested and cited and future shoplifters will find another, less-serious, retailer to steal from. Uniformed guards stationed at the exits are also a great deterrent to shoplifters. There’s no way to completely prevent external theft but have your security and loss prevention employ these tips and you’ll greatly reduce your shrink.

For more information about retail loss prevention contact us: security and loss prevention or call 1.770.426.0547 – Atlanta Georgia

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A loss prevention investigator working Organized Retail Crime – Atlanta Georgia

November 24, 2010 by

One of the many tasks faced by a loss prevention investigator is that of Organized Retail Crime. Commonly referred to as ORC, businesses everywhere suffer from this nuisance.

Recently, a loss prevention investigator was working a small chain of stores. He received information from 5 different stores of large amounts of merchandise were missing. Starting his investigation, the loss prevention investigator gathered information on the missing merchandise. All of the merchandise taken from the stores was the same, high street resale value and in high customer demand. Looking at several of the merchandise locations, the items were placed in the worst locations possible… in the back aisles of the store where employee view and interaction was minimal.

Further investigation and review of CCTV showed the merchandise being taken by the same group of people. It appeared that 4 males entered the stores, 2 peeled off and spoke with management, while the other 2 cleared the shelf of merchandise and into a black trash bag they carried. Then while the other 2 were distracting management, the trash bag was walked out of the store. Simply, the thieves outside would use their cellphone to communicate with others inside, ending their spree. This operation took no more than 5 minutes each time.

The loss prevention investigator , having a solid partnership with local law enforcement and other retailers, reached out for help. He sent out video, and screenshots of the suspects. Luckily, another local retailer had experienced the same suspects recently. The investigator put together the case. The word was out. The hunt for these “boosters” was on.

A phone call came in to the investigator at about 8pm that a loss prevention agent apprehended one of the suspects. The loss prevention agent , working undercover, observed one of the suspects clear a shelf of merchandise and head for the exit. The loss prevention agent apprehended him, while the other suspects fled.

The loss prevention investigator arrived and interrogated the suspect. He was able to get more valuable information and the local police department was contacted.

During the course of the investigation, the investigator was able to gather information on this ring that led to the arrest of 15 other accomplices and the recovery of $1.5 million in merchandise.

For more information contact us at loss prevention investigator or call 1.770.426.0547 – Atlanta Georgia

 

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CORPORATE FRAUD INVESTIGATION- THE UNKNOWN FACTS – Atlanta Georgia

November 22, 2010 by Leave a Comment

A corporate fraud investigation is much more complicated than many of us think.  I’ve been in corporate America for years and did not understand the intricacies of how the investigation of wrongdoing is conducted in a large corporation.  Or even who conducts that investigation.

The first intriguing fact is that a corporate fraud investigation is not only a private affair but involves the help of many federal agencies, including the Internal Revenue Service.  This is because the violations that are usually being investigated are in relation to the Internal Revenue Code and related statutes.

These crimes of corporations usually involve senior executives.  People who investigate these crimes must be able to concentrate on and understand the intricacies of high corporate finance and accounting.  The most prevalent law that prevents violations of the Internal Revenue Code is Sarbanes-Oxley.  This act imposes stiffer sentences of up to 20 years in prison for the destruction, alteration or falsification of records in order to impede a federal investigation.

In 2010 there were 116 corporate fraud investigation s initiated.  Of those 116, 91 of those recommended that someone be prosecuted.  There was actually a 77% incarceration rate of those 116 investigations with senior executives serving an average of 48 months.  This information comes from the Criminal Investigation Management Information System.

Need advice on a corporate fraud investigation. Contact us or call 1.770.426.0547 – Atlanta Georgia

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Proper Utilization of Security and Loss Prevention – Atlanta Georgia

November 22, 2010 by Leave a Comment

Let’s face it, no matter where you’re at in this great country of ours there are certain places where security and loss prevention are a much higher priority than others. In high risk communities it is extremely important that you utilize both tiers properly in order to keep your shrink to a manageable level. Your standard security, usually a uniformed guard or mobile unit, is primarily a deterrent to theft. Even the most brazen thief will think twice about grabbing a handful of merchandise and making a run for the door if there’s an authority figure present to block his/ her path.

The purpose of loss prevention is to identify and eliminate the more clandestine thieves. These criminals make up the majority of the shoplifting community. Most shoplifters don’t want to be identified. Not because they fear prosecution (though I’m sure that must factor into their thinking at some point) but because being identified greatly reduces the opportunity for them to return and steal from you again. This is why your security and loss prevention must work closely together to identify would-be shoplifters and deter hardened criminals.

Security and loss prevention must also work together to in the same way to deter internal theft. Security bag checks and random searches are a great way to keep your employees on their toes. They know that you, the business owner or manager, are far too busy with other tasks to concentrate on them 24/7, but shrink reduction and theft deterrence is the sole purpose of security and loss prevention. Proper utilization of these 2 forces will go a long way to controlling and improving your bottom line.

For more information about loss prevention security or retail loss prevention contact us: security and loss prevention or call 1.770.426.0547 – Atlanta Georgia

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