Signals that indicate possible internal theft – Part 1 – Atlanta Georgia

October 20, 2010 by Leave a Comment

Signals that indicate possible internal theft or employee theft with goods or money

1. Demonstrable shortages without administrative accounting, often described, for ease, as shrinkage.
2. Internal or external checks show stock differences or procedural errors.
3. Anonymous reports to management that may be from the home front, personnel or others.
4. Considerable shortages relating to certain personnel for which they may have taken the initiative or been asked for favours by others in exchange for reductions.
5. A sale of goods by certain sales persons need not lead to a till receipt.
6. Easy exchange, without a receipt, is possible.
7. Clients exchange or return goods with receipts or invoices that are unknown to the company.
8. The discovery of unknown (part used) receipts books near a sales point or in delivery vans. The carbon copy may be missing.
9. Repairs carried out by some employees on the basis of  “Oh, just give me …”
10. Self-loading by customers without any control at the exit.
11. Personnel arrange ‘special offers’ and make customers aware of them, unasked.
12. Personnel deliver ‘special offers’ to customers at home after working hours. Cash payment is demanded.
13. Personnel carry out repairs or installations for clients at home without invoice or receipt.
14. Goods are brought in for repair according to an agreement or guarantee when these goods, according to the administration, do not appear to have been sold by the company.
15. Goods for which the customer shows an unknown receipt or invoice are brought in for repair.
16. Deliver of goods at unusual times.

Many times several of these signals are seen in one employee. One item by itself may not be internal theft but a mistake. Look for one or more in a person. Remember, internal theft or employee theft should always prompt an employee theft investigation . Do not bury your head in the sand, employee theft will not go away on its own. It WILL get worse. Many times employers are afraid to have an employee theft investigation conducted because it will “offend” good employees. What offends good employees is to see unchecked theft going on around them.

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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Retail Loss Prevention and the benefits to your business

October 20, 2010 by Leave a Comment

Retail loss prevention should be dedicated to providing a safe environment for customers to shop and employees to work.

Many companies forget about how customer and employee accidents and injuries can negatively impact their profits. Several times have I visited stores where the owners or management aren’t really concerned with safety issues or don’t truly understand the impact of a customer accident or an employee injury.

Retail loss prevention has a big responsibility when it comes to safety. These professionals have the task of ensuring potential safety issues are identified and corrected as soon as possible. Issues such as merchandise in the stockroom and some areas of the salesfloor stacked closer than 18 inches to the fire sprinkler systems. In some locations, there are electrical paneling, and electrical related equipment stationed or stored in the backrooms. Merchandise should never be stored or placed any closer than 36 inches to these areas. Loss prevention should be concerned with correcting these potential safety risks.

I experienced an instance at a company I worked for where a number of violations lead to the injury of one employee and ended up costing the business hundreds of thousands of dollars in medical bills and fines. The store refused to make simple changes to policies pertaining to the use of trash compactors.

In this instance, an employee was sent into the compactor to dislodge an item. In a rush, the operator and employee did not enact the safety feature, and failed to notify others of what had happened. As a result, the employee in the compactor suffered a serious leg injury when the compactor was accidently restarted. Loss prevention responded to the incident and conducted an accident investigation.

Indeed, the employees were negligent and admitted that they were never properly trained on the use of this equipment, nor were they encouraged by members of management to be safe.

Retail loss prevention provides a great service to any retailer or business, whether it’s conducting investigations involving theft, or conducting accident investigations, retail loss prevention must always be focused on the goal of profitability.

For more information on loss prevention visit us at retail loss prevention  or call 1.770.426.0547

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Clothing security : Keep it out of the hands of thieves

October 20, 2010 by

Security tags on clothes are a good idea if you operate a business that sells these items. Clothing security is important to maximize profits and reduce loss associated with theft.

One common way that a shoplifter will steal is by using your fitting room to conceal your merchandise.  A shoplifter is well aware that there are no cameras in there, and that no one can see them.  To prevent this, a business must have policies and procedures in place…and be willing to enforce them!  Make sure your fitting rooms are locked at all times, and only unlocked by one of your employees when a customer is requesting to try something on.  Also, make sure that your employees physically handle the clothing that the customer is taking into the room, and that the employee stays in the area to make sure what goes in comes out.  If the shoplifter makes it inside the fitting room with what he or she wants to take…say goodbye to the profit on that merchandise.

Some shoplifters are content to conceal merchandise out on your sales floor, when they believe that none of your employees are looking. Clothing security needs to be a consideration when setting up your business.  Clothing is easy to steal – what measures are you going to take to prevent it from walking out your doors?

Many businesses choose security tags on clothes to help prevent theft.  A shoplifter who realizes that you have this type of clothing security will move on to the next business that does not.

For more information contact us about clothing security or security tags on clothes or call 1.770.426.0547.

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Background Checks and Employee Promotions or Retention

October 20, 2010 by

Background Checks and Employee Promotions or Retention

If your company conducts employee screening, including criminal background checks on all your potential new hires, you might not see the value in duplicating the process for an employee you are considering for promotion.  But if you think about it, there may be several reasons to consider doing just that.

Some of the reasons:

  • An increase or change in the scope of responsibility.  Perhaps the new position exposes the employee to more sensitive information, larger amounts of cash, or interaction with more or higher level clientele.  Think about whether a credit check is now more important than before.  You promote a warehouse worker to delivery driver.  Did you check his driving record previously?
  • The employee had a clean criminal record when he was hired a year ago.  Is that still the case, or has he since had trouble with the law?  And if so, would it be enough for the employer to have second thoughts about promoting or even retaining the employee?
  • Is the new position one that requires a certain level of education?  This may have been overlooked or left unverified at the time of hire, but could cause a loss of confidence on the part of your clients in the new position.  Verifying education is not difficult to do.
  • If the new position requires licensure or certification by a state or local agency, this can be verified through a fresh background check as well.
  • As another example, a driver’s route has changed so that he now delivers to a school or day care facility.  Checking the State Sex Offender Database might now be called for, or even required by the facility.

At the time that you consider promoting your next employee, you might want to think about the new responsibilities and liabilities associated with the position and conduct a new background check.

It is important to be fair and consistent with all employees and applicants who are subject to employee screening and background checks and develop the depth of the investigation based on the relevance of the position.

To discuss these and other background related issues go to Background Checks or call 770-426-0547.

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Does your business need a Corporate Fraud Investigator? – Atlanta

October 19, 2010 by Leave a Comment

A corporate fraud investigator is a seasoned professional trained in the art of detecting fraud at the corporate office and the executive level. These investigators spend large amounts of their time looking through ledgers and performing forensic accounting.

A business having issues with accounts payable, accounts receivable, merchandise flow and at times, merchandise at the distribution centers or other areas can be indicators of corporate fraud . Although there are numerous other ways for fraudsters to “do work”, the IRS believes the negative impact of corporate fraud depends on the complexity and magnitude of the schemes.

A simple look at corporate fraud takes us to the basics. Let’s say an Executive within an organization and two other of his coworkers decide to take advantage of the company they work for. The main executive makes several purchases on his corporate credit card. These purchases include repairs to his personal home, clothing and jewelry for his wife/girlfriend. Additionally, this executive hires his two coworkers as “consultants”. The “consultants” are paid hundreds of thousands of dollars for work that is never performed. Altogether, these fraudsters are bilking the company for serious amounts of money.

To truly understand the inter-workings of these schemes, the corporate fraud investigator will spend time digging, building, reviewing and identifying the trends and activities of the suspected employees. This is not an easy task. The investigator has to stay sharp and know the signs of fraud.

In another example, a business partner starting a new sales division needed money from investors. He falsely claims to have contracts with other large “brand name” businesses and tells investors the return on their investment will gain them a 15% return. The investors, seeing the potential for profits gave out millions. The fraudster took the monies and opened bank accounts overseas and trusts in the name of family members. The corporate fraud investigator working this case quickly saw the concerns on the investors when the returns never came in.

For more information about corporate fraud, contact us at corporate fraud investigator or call 1.770.426.0547 – Atlanta

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U.S. Shoplifting Statistics – Atlanta

October 19, 2010 by Leave a Comment

To prevent shoplifting you must first understand the problem. Take a look at these shoplifting statistics as compiled by the good folks at the NASP.

  • More than $13 billion worth of goods are stolen from retailers each year. That’s more than $35 million per day.
  • There are approximately 27 million shoplifters (or 1 in 11 people) in our nation today. More than 10 million people have been caught shoplifting in the last five years.
  • Shoplifting affects more than the offender. It overburdens the police and the courts, adds to a store’s security expenses, costs consumers more for goods, costs communities lost dollars in sales taxes and hurts children and families.
  • Shoplifters steal from all types of stores including department stores, specialty shops, supermarkets, drug stores, discounters, music stores, convenience stores and thrift shops.
  • There is no profile of a typical shoplifter. Men and women shoplift about equally as often.
  • Approximately 25 percent of shoplifters are kids, 75 percent are adults. 55 percent of adult shoplifters say they started shoplifting in their teens.
  • Many shoplifters buy and steal merchandise in the same visit. Shoplifters commonly steal from $2 to $200 per incident depending upon the type of store and item(s) chosen.
  • Shoplifting is often not a premeditated crime. 73 percent of adult and 72 percent of juvenile shoplifters don’t plan to steal in advance.
  • 89 percent of kids say they know other kids who shoplift. 66 percent say they hang out with those kids.
  • Shoplifters say they are caught an average of only once in every 48 times they steal. They are turned over to the police 50 percent of the time.
  • Approximately 3 percent of shoplifters are “professionals” who steal solely for resale or profit as a business. These include drug addicts who steal to feed their habit, hardened professionals who steal as a life-style and international shoplifting gangs who steal for profit as a business. “Professional” shoplifters are responsible for 10 percent of the total dollar losses.
  • The vast majority of shoplifters are “non-professionals” who steal, not out of criminal intent, financial need or greed but as a response to social and personal pressures in their life.
  • The excitement generated from “getting away with it” produces a chemical reaction resulting in what shoplifters describe as an incredible “rush” or “high” feeling. Many shoplifters will tell you that this high is their “true reward,” rather than the merchandise itself.
  • Drug addicts, who have become addicted to shoplifting, describe shoplifting as equally addicting as drugs.
  • 57 percent of adults and 33 percent of juveniles say it is hard for them to stop shoplifting even after getting caught.
  • Most non-professional shoplifters don’t commit other types of crimes. They’ll never steal an ashtray from your house and will return to you a $20 bill you may have dropped. Their criminal activity is restricted to shoplifting and therefore, any rehabilitation program should be “offense-specific” for this crime.
  • Habitual shoplifters steal an average of 1.6 times per week.

For you to prevent shoplifting you need more than a hope and then trust to luck. Shoplifters will clean you out if you are not proactive. Training and knowledge of how to spot and approach is key.

For more information contact us at prevent shoplifting or call 1.770.426.0547

Information and statistics provided by the National Association for Shoplifting Prevention (NASP), a non-profit organization; www.shopliftingprevention.org.

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The Difference Between Security and Loss Prevention – Atlanta Georgia

October 19, 2010 by Leave a Comment

The key difference between security and loss prevention is in the roles each one plays within any given organization. For instance, a security guard is someone, normally in uniform, who guards a post and/ or patrols an area. His/ her charge is to provide for the general safety and security of the establishment, its workers and patrons; and to establish physical deterrence to any would-be criminals. A loss prevention detective (or agent, as they are often referred to) is charged with the task of identifying and investigating shrinkage, whether it is from shoplifters, internal theft or paperwork errors. They normally operate covertly, and their goal is to maximize the profits of the company.

Security and loss prevention are similar in some areas as well. Both may be called upon to detain suspects, coordinate and interact with police and other law enforcement entities, taking witness statements, observing the questioning of a suspect and testifying in a court of law. However, in addition to these things, loss prevention also investigates numerous kinds of check and credit card fraud, identity theft, corporate fraud and white collar crimes. They investigate internal theft, interview or interrogate employees as necessary, training and make recommendations on improving the physical security of an establishment.

 There is a time, a place and a use for both security and loss prevention . However, if you want my opinion (and who doesn’t?), hiring a security guard to watch your business is like buying a German shepherd to guard your home. Sure, he’ll be loyal as long as you keep him fed, but you won’t know anything is wrong until it’s too late. Loss prevention is a proactive approach to shrink reduction. In the end the difference between security and loss prevention is scope; so ask yourself, do you want to save a little bit of your profit or all of it?

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

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A Worthwhile Investment: Clothing alarms

October 19, 2010 by

Having a clothing alarm is a smart business move for businesses wishing to protect their assets.  Clothing is supposed to be for sale…not free for the taking.

The theft of clothing in a retail environment is unfortunately simple and very common.  Clothes can be folded up, or wadded up, and slipped easily inside of a large purse or backpack.  They can also be worn out of the store by simply putting them on under clothing.  Another shoplifting theft I’ve witnessed is a customer entering a store without a coat, and then wearing one out.  If your employees are busy helping other customers, even this brazen a theft can go unnoticed.

Businesses cannot afford to do nothing to help prevent this type of theft.  A clothing alarm can be beneficial in deterring the theft of the clothing you sell.  A potential shoplifter will come into your business, see that you have this security measure…and then they will move on to the next business.

Shoplifters want to have to spend only a very short amount of time prepping merchandise in order to steal it.  They also do not want to draw attention to themselves.  Taking the time to try to remove a clothing alarm is not something most shoplifters are willing to do.  Risking an audible alarm if they leave with the clothing is also a chance many shoplifters will not take.

Shoplifters are not the types of customers you want to have in your store.  And higher prices to recoup the loss from shoplifting are not what you or your customers would like either. A clothing alarm helps keep the shoplifters away and profits where you’d like them to be.

For more information about clothing security or clothing security tags contact us about clothing alarm or call 1.770.426.0547.

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Pre Employment Screening and Temporary Agencies

October 18, 2010 by

Pre Employment Screening and Staffing Companies

Pre employment screening poses quite a puzzle for temporary agency recruiters and those placing contract workers.  Economically, it would seem to make sense to do as little as possible in this area, and still be able to claim that a background check has been done.  Economics aside, providing a less than suitable candidate to a client can have far reaching consequences to the agency’s reputation and future business.  If an agency places a candidate that erupts in an episode of workplace violence or commits some criminal act such as theft or fraud, the agency’s reputation will certainly suffer.  Bad enough if it happens, but worse if the agency should have known by past behavior of the candidate that such actions might occur.  Conducting an adequate pre employment screening would go a long way in preventing illicit activity, as well as demonstrating due diligence in the placement of candidates.

Frequently, however, the client dictates to the agency the depth and scope of the background investigation, and some are far more stringent in their requirements than others.  When that happens, where does the agency go?  Hopefully, they have developed a relationship with a knowledgeable background check company that will partner with them to provide an acceptable program for the client company.

A background check company should provide advice and direction in developing the pre employment screening program for every position from laborers to CEO’s, without forcing a cookie cutter, same for everybody background report.

For help and advice with your pre employment screening program, call 770-426-0547 or click here.

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Implications of Internal Theft & A Loss Prevention Investigator – Atlanta

October 18, 2010 by

Do you know what internal theft looks like? Is there a certain way internal theft is supposed to look?

Well, not really. Theft is theft. It looks the same no matter what environment you work in. When an employee or employees are involved in the act of theft, it doesn’t look good.

Retailers have been wrestling with the dishonest employee since the beginning of the retail world. Looking back to ancient times, street vendors had to deal with employee theft. Although a much harsher punishment was given, the outcome was the same, lost profits.

Now the million dollar question, does your business have employee theft? It’d be a safe bet to say YES. I can’t count the number of times I’ve heard managers or business owners say they have no dishonest employees or that their business does not suffer from internal theft. Yet looking at their books, they are losing thousands if not millions of dollars yearly.

Look at the key indicators of theft. Statistically, the under 21 years of age, part time male employee is most likely to be involved in acts of theft and dishonesty. Yet, those with tenure seem to cause the most loss. What kind of merchandise do you sell? Is your business a cash business?

Having a set standard or policy and procedures in place can help deter the possibility of internal theft but it won’t eliminate it.

The best solution would be to put in a loss prevention investigator to truly identify where your dishonest employees are.  A loss prevention investigator will be able to quickly recognize losses and offer the best solution based on the needs of the business.

Specializing in internal investigations, the loss prevention investigator will conduct surveillance, interview witness employees, perform covert CCTV work, and build a strong investigation. Upon identifying a suspected employee, the investigator will interrogate the employee, aiming for a positive outcome… the admission of theft.

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

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