Retailers see an increase in Corporate Fraud

October 8, 2010 by Leave a Comment

Most experts agree no company is immune to corporate fraud. Although all companies would love to believe they have the most honest employees, the reality of it is, they don’t.

Corporate Fraud is damaging to both the associates and the reputation of the company. Fraudsters cause millions of dollars in loss every year, and the estimates continue to rise.

I remember an employee working out of the corporate office of a beauty products company I worked for. She got herself into the mix of fraud. Befriending a vendor, the employee had control of a select line of merchandise coming into the company. After building a relationship with the vendor, she decided to push her luck. The vendor and employee partnered up and started their scheme. As the vendor pushed the merchandise, the employee inflated the purchase orders, buying more than what the company expected. The vendor delivered only what the company expected and the employee kept the additional items. These additional items were kept inside of a storage unit, rented by both the employee and vendor. Over the period of about 6 months, the two had enough merchandise to start their business. Initially, they started with a booth at a local swap meet. Realizing the possibilities of the internet, their business quickly left the swap meet scene and their new beauty endeavor started on Ebay.

These two were eventually stopped, but caused a significant loss to the company. The two initiated their scheme prior to the beauty company starting a loss prevention program. Hired as a loss prevention Investigator, I immediately saw huge issues at the store level that led me to investigate the corporate office. Shrink numbers as high as 25% told me the story of theft and inaccurate book keeping. The investigation led me to the buyers, and with the help of an additional loss prevention investigator we were able to uncover the scheme.

Corporate Fraud is damaging, no doubt about it. Having a program in place to combat the inevitable and remain profitable is the solution.

For more information contact us about corporate fraud or call 1.770.426.0547

 

Filed Under: Uncategorized Tagged With:

Atlanta Journal Constitution On Smash & Grab

October 8, 2010 by Leave a Comment

In the world of retail loss and retail shrinkage in Atlanta this story that was recently published in the AJC really hits the nail on the head.

Arielle Kass, October 7, 2010
 
Sharla Jackson can rattle off a list of stores that have closed due to smash-and-grab crimes over the past three years.

Since July, a new state law has imposed tougher penalties on those convicted of smash-and-grabs, in which thieves bust through windows, walls, roofs or doors then snatch merchandise like jeans or flat-screen TVs to resell. It comes as the number of such crimes is the highest it’s been in years said Jackson, senior assistant district attorney in the Fulton County district attorney’s office and a member of the retail theft task force.
 
With 132 smash-and-grabs so far this year, the count is already ahead of 2008, when there were 130 instances in metro Atlanta’s five biggest counties.  Last year, there were 119 smash-and-grabs; in 2007, there were 97, according to the task force.
“They do it so quickly, it makes it difficult for them to be apprehended,” Jackson said. “They steal thousands of dollars of merchandise in a very short period of time.”
 
The latest happened Tuesday at Urban Outfitters on Ponce de Leon Avenue at North Highland Avenue. The chain declined to comment.
 
Metro Atlanta saw more than 300 incidents from 2007 to 2009, said Angelica Rodriguez, senior director of loss prevention for the National Retail Federation. The losses totaled more than $3 million, and Rodriguez said because not all incidents are reported to the organization, that is likely just the tip of the iceberg.
 
A new state law that took effect in July defined the crime and lengthened minimum sentences, ensuring that juveniles who are arrested for smash-and-grabs causing at least $500 worth of damage are subject to up to five years of custody. Adults who solicit juveniles for the crime serve between one and five years of jail time, and minimum sentences for participating adults were extended to two years.
It is still too early to know if the new laws will deter the crime, Jackson said, but she noted that the issue is a problem outside Atlanta’s city limits.
 
Smash-and-grabs happen “As far north as Dawsonville, up at the outlets . . . It’s not just an Atlanta issue, it’s an issue that affects so many businesses.”
Rodriguez, of the National Retail Federation, said thieves have moved on to department and electronics stores as boutique owners have enhanced security. Now, they also often target ATMs in grocery and convenience stores.
 
House of Adrene, on Peters Street in Castleberry Hill, had been hit several times at its old location, manager Erica Morton said. Since moving down the street in March, the store’s owner has taken measures to prevent the thefts, including locking up the denim that was a frequent target.
 
The crimes are worse in metro Atlanta than elsewhere, said John Heavener, president of the Georgia Retail Association. Jackson said that is because Atlanta has a large retail concentration and is near several highways. The stolen property can show up at flea markets, in online stores or on the street.
 
Small business owners don’t often have large security budgets, Jackson said, and are selling inventory so they can buy new inventory with their earnings. When those items are taken, they can’t pay to replenish their stock and repair the damage. Retailers hit more than once may be dropped from insurance, and Jackson said it can be impossible for a business to stay open.
 
“It’s a huge deal for retailers,” she said. “In a poor economy, you don’t want to have to pass those losses on to customers.”

If you are a retailer do not just sit back. Get involved. Join the Georgia Retail Association (GRA) and make sure your voice is heard on the smash and grab epidemic that is occurring. Prevent retail loss and retail shrinkage . You never know your store could be next.

For more information about retail shrinkage in Atlanta contact us at retail loss or call 1.770.426.0547

Filed Under: Uncategorized Tagged With: ,

Clothing Security In Europe vs The U.S.

October 8, 2010 by

I just got back from a much-needed vacation in France and Germany. Even though I tried to shut down from work a bit, I found it difficult as we were doing a bit of window-shopping. What I saw amazed me. Shoplifting, use of a clothing alarm and clothing security by retailers is alive and breathing in Europe.

In fact it was unusual to see a retailer of any size that did not have some protection. It seems that European retailers have figured it out; proactive clothing security is the way to go if you want to make any money (or survive). I even saw a clothing alarm system in a shop that could not have been more that 200 square feet and one isle.

I saw security tags on clothes of every kind. Of course leather but they have in many cases gone down to a lower price point than I see in most U.S. retailers. What I heard is that “If you have a system, use it”. Clothing security was even being used on items with price points in the $1 – $2 area. This applied to both large and small retailers.

I did not see the use of as much CCTV as I thought I would have with clothing security . Major retailers had them in several locations but I would have thought the POS and all entrances would have been covered much more. Of course these cameras could have been hidden. We also have to keep in mind that the laws governing liability are different there. They are not as concerned about lawsuits.

What I wondered about was their use of a Loss Prevention Agent on the sales floor. My wife decided for me that testing the system was probably not a good idea!

But clothing security did seem to be a huge issue.  Retailers made use of everything we have here in the U.S. also such as lanyards, flex strings and keepers. I also saw a fair amount of ink tags. What I did not see is some of the more recent security tags on clothes like the new Checkpoint releases.  Clothing security tags there seemed to be on the larger size. Also clothing security tags in Europe use the same various lengths of pins that we do here.

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

Filed Under: Uncategorized Tagged With: , , ,

Could Background Check Have Prevented Rape?

October 8, 2010 by

Could Background Check Have Prevented Rape?

The question above was asked by CNN, who investigated and incident on the Gulf Coast last month when an oil spill worker was put to work with a background check being done on him.

The oil company that employed the worker along with hundreds of others conducted drug checks on their workers, but not background checks.  The 41-year-old employee, who had a criminal record dating back to 1991,and has been a registered sex offender since 1996, offered to give a ride home to a co-worker who wasn’t feeling well.  Once at her hotel, he asked to use the bathroom and when he came out, he attacked and raped her.

He was charged with sexual battery and failure to register as a sex offender.  He was held under $505,000 bond in Jackson County Mississippi.

It’s easy now to play Monday morning quarterback and question the actions of the oil company.  They decided that drug testing was important enough to run to avoid hiring users, but not a background check in order to determine if the potential worker had a past that included violent criminal acts and sexual offenses. The oil company, already dealing with a public relations nightmare and an environmental disaster, now had yet another embarrassing incident to defend.

Background checks are now an accepted part of the hiring process and are quick, and economical to do, making it so easy to avoid problems like those described above.  Everyone deserves the safest environment possible in the workplace, and the victim’s exposure to this predator could have been easily prevented.

As the victim was quoted as saying, “If they would have ran the background checks, they wouldn’t have had a man like that working.”

To discuss your background check program, click here, or call 770-426-0547.

Filed Under: Uncategorized Tagged With:

Hire faster and smarter using a background check company for employment screening

October 8, 2010 by

If you are considering the use of a background check company for pre employment screening you are probably aware that there are powerful benefits in doing so.

Hiring managers and HR departments spend many hours weeding through the mountains of resumes and applications received for each open position. This process takes time that can cause other tasks to lag behind and good candidates to slip by to the competition in the meanwhile.

The latest technology in employment screening offered by any leading edge background check company allows you to enter some basic info on line at your convenience and submit for very fast results.  Getting theses results emailed to your inbox means you do not have to wait for your provider to get around to your file for processing and you can read them on your timetable.

Having your background check company perform pre employment screening before you get too far along in your hiring process will weed out some candidates cutting down on the face to face time spent with someone you may like personally in one brief meeting only to discover serious disqualifiers in the employment screening results later… and then it is back to the drawing board.

It is easier than ever to know who you are hiring and that what you think you see is what you are actually getting.  We would all like to trust our gut with candidates but the smart thing to do to protect your business and employees is contract your employment screening to a background check company. There are countless stories of ” I trusted…”

To learn about your employment screening options, visit: background check company or call 1-770-426-0547

Filed Under: Uncategorized Tagged With: , ,

Loss Prevention in the Retail World

October 7, 2010 by Leave a Comment

Loss prevention is a broad topic in the retail environment.  Its expanse can make it difficult for a business owner to identify what aspects may be beneficial to his or her organization.  By learning more about what options are available to combat loss, businesses can choose what is right for them.

Loss prevention is any type of policy or procedures a business chooses to use to reduce loss of inventory and increase profits.  Apprehending shoplifters is one aspect of retail loss prevention, but proactive measures are also important.  For example, teaching your employees to provide excellent customer service can help prevent theft.  Shoplifters do not want employees’ attention – so that is exactly what a business must provide.

Also important is making sure that basic controls are implemented and followed.  If your business has a fitting room, make sure that employees are trained to monitor what enters that room.  If there is merchandise that is locked up in cases, make sure all employees understand the importance of keeping the merchandise secure until it is purchased by the customer.  You’d be surprised how many employees will unlock a case, and then hand the secured merchandise to a customer instead of ensuring that the merchandise immediately goes to the cash register.

Key controls are also important.  Make sure that keys to back doors, secure merchandise cases, fitting rooms, etc, are properly logged and only given to responsible associates.  Employee theft is common enough without lax controls within the business aiding the process.

Anyone can be a potential shoplifter – the rich, the poor, the elderly or the young.  Loss prevention is an important part of any business that has a vested interested in protecting their assets.

 For more information contact us: loss prevention  or call 1.770.426.0547.

 

Filed Under: Uncategorized Tagged With: ,

Do you really need to do Criminal Background Checks?

October 7, 2010 by

You’re a pretty good judge of character and you consider yourself a “people person”, so why do you need to go through the trouble of a criminal background check? Well think about it, every serial killer, kidnapper or bank robber in recent history has had some neighbor who stood up on the 6 o’clock news and testified to what a nice person they seemed to be. Guess what? I bet that person worked somewhere too. A criminal background check is a good way to make sure the next subject of America’s Most Wanted isn’t sitting in the cubicle next to you.

Ok, maybe I’m being a little dramatic. However, a criminal background check is an invaluable tool to help prospective employers discover possible security and safety issues before they become a liability. Sure, anyone can commit a crime but statistics state that 61% of all felons are repeat offenders. That means that, for whatever reason, if you’ve committed a crime in the past you’re far more likely to commit one again in the future. I don’t know about you but that’s not the guy/girl I want with their hand in my cash register.

There are many companies that specialize in these checks. Shop around and see which one works best for your company’s needs. Also be aware that the extent to which you, the employer, may consider someone’s criminal history in making your final decision on who to hire varies depending on which state you do business in. For this reason it is prudent for you to consult an attorney or do some research into your individual state laws before making your final decision on an applicant based on their criminal background check.

For more information contact us at Criminal Background Checks or call 1.770.426.0547

Filed Under: Uncategorized Tagged With: ,

Prevent Shoplifting With a New CCTV Tool In Atlanta

October 7, 2010 by Leave a Comment

Studies have shown that of the three groups of shoplifters, which include; impulse, amateur and professionals that the first two, impulse and amateur shoplifters can be significantly deterred with a customer service greeting. The idea goes like this: The shoplifter along with every other customer is greeted as they enter your store with a “May I help you” or “Can I help you find something” will cause many of the shoplifters in these two groups to not shoplift during that visit. In other words they have been noticed. This a well established tool to prevent shoplifting .

But many retailers do not have the labor to do this. Another concept that plays into this is a Public View Monitor (PVM). A camera is pointed at the entry door and the picture is displayed on a monitor usually twenty inches or larger that is mounted so that the customer sees them self enter. This gives the shoplifter a similar effect. They assume that they are being recorded and that the store has more cameras including hidden ones.

PVM’s can be configured in two ways. A standard camera and monitor or a camera that is built into a monitor. The latter give a clean hi tech look. The camera is hidden in the unit and thus gives the customer the idea that more cameras including hidden ones are in place. Most of these units are suspended from the ceiling out of reach.

Another idea takes this a step further. PVM’s are also put into high theft areas such as health and beauty, tools, clothing accessories… As the customer walks into the area they see themselves on the monitor.

Several brands of Public View Monitors will also display marketing information on them and have a motion detector built into them. When a customer walks within a short range of the monitor it switches to live mode. Otherwise, customers in surrounding areas can see specials or sales that are ongoing. They could also be configured to play brand information. Imagine that your vendors pay for the right to play their brand videos. Your vendors can help pay for your program to prevent shoplifting .

When looking for a PVM also consider several other options. Since the units need to be on when your store is open, get a unit that has a timer or scheduler on it. This way it will turn on and off based on the hours that you program into it and will not be running after hours.

And because the Public View Monitor will be on quite a bit consider a unit that is more “green” and consumes less energy. Typically conventional tube type TV’s are more power hungry. A flat screen is not only less energy thirsty but also presents a much better appearance. Space for the PVM must be considered also. Make sure that the unit is not too large and look out of place. Once set up this is an automatic program to prevent shoplifting .

For more information on Shoplifting or Public View Monitors contact us at prevent shoplifting or call 1.770.426.0547. Loss Prevention Systems, Inc is an Atlanta based company.

Filed Under: Uncategorized Tagged With:

Loss Prevention and investigations using POS applications

October 7, 2010 by Leave a Comment

Many Loss Prevention departments find the benefits of using POS monitoring applications on a daily basis. Activities of dishonest employees take place while working on the register and while utilizing much of the data, Loss Prevention can do their job.

In this example, I’ll use exception based reporting systems. Tied into a company’s Point of Sale system, exception reports provide employers with valuable information by identifying employee trends. Price check, price inquires or price verifies are one of the most common methods dishonest employees will use to try and fool the ever watchful manager.

A part time employee under the age of 25 ringing on the register has a couple of friends bring up some beer and liquor. To the manager, the employee appears to scan the merchandise correctly. The manager assumes all is well and moves to his next task. What the manager didn’t see was the dishonest employee pressed the price check button on the register. The customer hands the employee cash and are on his way out of the building.

Loss Prevention runs the exception reports as part of their everyday tasks. Several transactions are found on this employee where the price check button is used. The Loss Prevention Investigator digs deeper and finds transactions where the price check button was used to purchase beer and liquor. The loss prevention investigator reviews the available CCTV footage of the transaction date and time. After review, the loss prevention investigator finds the employee never actually scanned the merchandise as a regular transaction, only scanning under the price check button. The Loss Prevention Investigator arranges for the interview/interrogation of the employee and the losses are stopped. Continuous monitoring via exception based reporting systems by loss prevention will help deter future occurrences. The issues found are used by the store management as training and coaching opportunity.

For more information visit us at loss prevention or call 1.770.426.0547

 

Filed Under: Uncategorized Tagged With:

Combating loss with the help of a Loss Prevention Agent

October 6, 2010 by

A loss prevention agent  is a trained professional who can assist businesses in identifying the cause of a loss of profit (which is a result of loss of inventory, cash, adminstrative errors etc…).  When a business experiences a loss, figuring out the source can prove challenging and time consuming.  And if the cause ends up being employee theft, then this can be especially frustrating for the business owner.

A business owner or manager identifies that there is an issue in their organization, and loss of profit is resulting.  When all indications point to employee theft, the business owner can feel betrayed by his or her trusted employee.  However, a business must protect their assets, so an unbiased and experienced person such as a  loss prevention agent can be brought in to assist.

A loss prevention agent can help businesses identify the cause of a loss of profit, and also help secure restitution in situations of employee theft. Also referred to as a loss prevention investigator or loss prevention consultants, these professionals are trained to create cases worthy of successful prosecution if that is desired.  They are also trained in conducting employee interviews of both witnesses and suspects.  This is necessary so that the most accurate information can be obtained during an investigation.

We all want to trust those that work for us – but it is inevitable that your business will one day be the victim of employee theft.  Considering employee theft accounts for more loss than shoplifting, it is critical that these losses be identified and handled as soon as possible.  A loss prevention investigator has specialized skills honed specifically for a retail environment.

For more information contact us: loss prevention agent  or call 1.770.426.0547.

 

Filed Under: Uncategorized Tagged With: , ,
« Previous Page
Next Page »