Alpha 3 Alarm — Page 30

The Costs of “Wardrobing”

March 31, 2015 by Staff Editor Leave a Comment

According to the National Retail Federation’s annual survey, it is estimated the industry loses approximately $9.1 billion yearly in return fraud. This includes refunds on merchandising that has been stolen and a practice like “wardrobing” that is costing retailers this incredible amount. Those incidents are done by employees as well as shoppers and shoplifters. To read more about this topic follow the links below for more information.

NOT-SO-HAPPY RETURNS: RETAIL FEDERATION HIGHLIGHTS “WARDROBING” COSTS

In a new survey, the National Retail Federation says that holiday-return fraud could end up costing stores billions this year. The worst part? This scam is more organized than ever.

The holidays are over, but stores big and small will be dealing with more than the memories.

That’s according to the National Retail Federation (NRF), which reported late last month that during the holiday season alone, retailers could face as much as $3.8 billion in lost revenue from fraudulent returns, an increase from $3.4 billion in 2013 and a big chunk of the estimated $10.9 billion in return fraud in 2014 as a whole.

The organization’s 2014 Return Fraud Survey [PDF], which gathered responses from loss-prevention executives at 60 retailers, shows that retailers suspect that 5.5 percent of holiday returns are fraudulent. And while technology has helped curb illegitimate returns, NRF said, there’s only so much companies can do about retail fraud, which is often suspected to be the work of crime rings.

Eliminate the Practice of Wardrobing in Your Store

Well here’s a new one to me. The art of wardrobing. It’s a term coined for shoppers who buy merchandise with the full intent of using it, then returning it for a full refund. Take a read of the article as the insight is fascinating.

I was astounded to learn that “nearly two-thirds of merchants had items wardrobed in 2007, up from 56 percent the year before, the first year the National Retail Federation (NRF) started tracking the trend,” according to the article.

The term wardrobing was chosen (I’m guessing) because it stems from clothing that’s been purchased, worn and then returned. But the article points out that wardrobing has taken on a broader meaning and is now applied to any merchandise that’s been used and then returned.

So how big is wardrobing? The article points out that “Wardrobers want to rent the things they want or need for free, which amounts to fraud, said Richard Hollinger, a criminology professor at the University of Florida who specializes in retail theft. He said return fraud, which includes wardrobing, fake receipts, and other practices, cost retailers an estimated $10.8 billion last year, up from $9.6 billion in 2006.”

RETURN FRAUD COST 9.1 BILLION IN 2013

Criminals trying to get refunds on stolen merchandise and customers engaged in practices like “wardrobing” cost retailers an estimated $9.1 billion in return fraud last year, according to NRF’s annual survey.

“While coverage of this issue paints return fraud as one of the less severe retail crimes, the fact of the matter is that returning used or stolen merchandise — or even using false tender to purchase items — is fraud, period,” NRF vice president for loss prevention Rich Mellor said in a release accompanying the survey. “Efforts to combat fraudulent activity are slowly starting to work, but criminals are becoming more savvy and technologically advanced in their methods.”

The dollar amount of fraud was up 2.8 percent from 2012, but the proportion of returns believed to be fraudulent (3.4 percent) remained the same. During the just-finished holiday season, fraud totaled an estimated $3.4 billion.

Fraud was experienced by virtually all retailers, with stolen merchandise involved in 95 percent of cases. Employee fraud accounted for 93 percent of incidents; 69 percent were returns of items purchased with fraudulent payment like stolen or counterfeit gift cards. Wardrobing — where customers typically purchase a dress for a party or a big-screen television for the Super Bowl and return the item after it has been used — accounted for 62 percent.

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, Employee Theft, Loss Prevention Training, Prevent Shoplifting, Retail Anti Theft Devices

Wardrobing & Returns

March 30, 2015 by Staff Editor Leave a Comment

There is a new term in the retail dictionary. “Wardrobing” is the process where a customer purchases a piece of your merchandise, uses it one time, then returns it claiming a small flaw or just taking advantage of your liberal return policy.

We see this especially in clothing such as expensive dresses, prom dresses, shoes and suits. But tools, electronics, beach wear and more can be a target. The problem is hardly new. However, it has always been frustrating. Not only has the retailer experienced a loss since the merchandise is no longer new but chances are that you or your staff put a considerable amount of time into the initial sales process. Couple that with tight margins and expenses and the problem gets expensive quickly.

Add to this that word will spread. If your store is known as an easy mark for wardrobing, then this kind of shopper will flock to you like metal to a magnet.

The problem is also not just a brick and mortar store problem. In many ways it is worse for online stores. Because it is a faceless transaction, the shopper is more likely to feel comfortable about doing this.

Whether it is right/wrong or illegal, is a side issue. Wardrobing causes Retailers significant losses.

So how do we fix the wardrobing problem that leads to your returns being higher than they should be? First look at your return policy. Have you dusted it off lately and updated it? Look at the circumstances of accepting returns. Look at the time limits. Is there a restocking fee? Is the customer responsible for shipping on certain items? Look at your competition’s return policies both in store and on-line. Maybe they have solved the problem and the wardrobers are now coming to you. If you would like, I can also be an LP sounding board (at no charge) for your return policy. Just call me, Bill Bregar, at 770-426-7593 x101.

We also offer an excellent fix for wardrobing. The “Shark Tag” by Alpha High Theft solutions basically puts an end to wardrobing. Shark tags are bright tags that mount directly to the merchandise or can be attached via a lanyard. An example could be that the Alpha Shark Tag is placed in a very obvious area such as the bust line (as a guy I would notice it!) of a prom dress. The Shark tag can be removed easily by the customer at home with a pair of ordinary scissors. Once the Shark Tag is removed, your stores policy kicks in. Without the Shark Tag attached, a return is no longer possible.

Also, Shark Tags are VERY inexpensive! If you would like a sample, please contact us.

Remember, you and your staff put a lot of time, effort and expense into your sales efforts. Do not let the thieves or even the wardrobers, rob you of your margins or even your business!

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, Employee Theft, Retail Anti Theft Devices, retail security and monitoring, security devices

Why You Should Always Prosecute a Thief

March 30, 2015 by Staff Editor Leave a Comment

Throughout the last few years, I’ve encountered and had the chance to network with several small business owners in my community. Most of these encounters were a part of a retail/law enforcement partnership. It always seems that these smaller stores have the same shoplifting problems as the big box retailers, but with one key difference. Those small stores don’t have the sales figures to cushion them from losses. If I compared my store (a large national retailer) to a smaller store in the same shopping center, and that smaller store has even ¼ the loss I see, that could be devastating to their ongoing success. Part of the problem is that smaller stores are less likely to prosecute a shoplifter, which makes them a very soft target.

The case for prosecuting every shoplifter is strong. You can look at every major retailer across the country and they all have large Loss Prevention departments with the goal of prosecuting everyone that steals from them to the fullest extent of the law. Why do they do this, and better yet, why should you? First, it sends a very clear message. You will not tolerate stealing your hard-earned money, and if you come in my store and steal, you will go to jail. Second, it keeps prices low for your customers, and shrink low for you. Finally, if someone steals from you and damages your product, even if you recover it, you’re still at a loss. By prosecuting that shoplifter, you are entitled to recover what has been lost during that particular incident.

It’s important to send a message to shoplifters. Believe me when I tell you that shoplifters share trade secrets. Not only does word travel on the new item to boost, but where the easiest place to steal it is. Shoplifters are like water, they travel the path of least resistance. If they know that the small store up the road won’t call the cops if they are caught, then that’s where they are going. It’s basically a win-win for the thief. They can either come into your store, steal and get away, or they can get caught with no real consequence and be released only to try again. You have to take a stand against their criminal acts and show them that you will not be victimized by their actions. Money:
We all like to boast our low prices. You can’t have a successful business if your prices are significantly higher than your competitors. Well, shoplifting affects your ability to keep prices low. If you are logging loss month, after month, you’re going to have to raise your prices in order to make up for the losses. This may help in the short term, but over time, customers will seek out the best deal for their dollar. Prosecuting a shoplifter keeps that merchandise in your store, it keeps the product available for your customer and it ensures that you stay in the black.

Money: You’re in business to make money. When a shoplifter steals from you, they are taking money out of your pocket, and food off of your family’s table. Let’s imagine a shoplifter steals a pack of steaks from you. Maybe they put the food down their pants, but you catch them at the door and get your steak back. Would you really put that food back out for sale? Probably not. If you didn’t file charges against that shoplifter, he was able to still cause a loss to your store. By prosecuting this individual, you will be able to collect, through the court system, what is rightfully owed to you. You wouldn’t allow someone to come into your home and steal your TV with no consequence, so why let them do it to your business?

Every time I have the chance, I bring up these points to whomever will listen to me. What I see the most is small business owners being afraid to prosecute a thief for various reasons. The most common is the reluctance to go through the judicial process. I know… the wheels of justice turn very slowly these days, but that’s no excuse to let a thief go un-punished. Your business is your life blood, it’s how you feed and provide for your family, so next time you catch that shoplifter stealing your hard earned money, make sure that they are prosecuted to the fullest extent of the law.

ShopliftingTricks You Should Be Aware of For Preventing Shrinkage

March 23, 2015 by Staff Editor Leave a Comment

Haven’t you heard in police shows on TV how you have to think like a criminal to catch a criminal? Well, in shoplifting prevention you have to know the methods these criminals are using to be able to protect your merchandise and your employees. There are shoplifting rings that are professional and make their living stealing. They may target a specific store or chain of stores, but they always have a plan and different people working to steal as much as they can without getting caught. The shoplifting prevention team in your store may not be aware of some of these “methods,” and being aware of them may be the difference between a profitable store or one that is constantly loosing money. For more news about this topic, follow the links below.

Suspects arrested after aluminum foil used in shoplifting

SNOHOMISH — Money-making schemes are a popular topic of conversation among the criminal community. One such scheme ended in three arrests earlier this month in Snohomish. A group of suspects was accused of working in tandem, using aluminum foil to defeat anti-shoplifting devices.

The trick is widely known among heroin addicts who pilfer goods to support their habit, Police Chief John Flood said. He credited the Nov. 2 bust at the Snohomish Station Kohl’s to increased anti-shoplifting patrols and proactive store security.
Snohomish police started seeing thieves trying the foil ruse about a year ago, Flood said. The crooks wrap bits of foil around the security tags.

Dubai shoplifters’ tricks: Cut magnetic tags

Two Egyptians, who allegedly fled with garments they stole from a shop after removing the magnetic tags, returned after 45 minutes to steal more, the Dubai Criminal Court heard.

AM, 27, truck driver and HS, 28, clerk were noticed roaming around in a well-known store by a security staff.

“I noticed two Arabs roaming around in the shop and kept an eye on them. They picked up a pair of shoes and a T-shirt and one of them entered the trial room while the other waited outside. Then the man came out of the room without the shoes and the garment.

“The two then stepped out of the shop and as the security device did not beep, I thought they had left the T-shirt and the shoes in the room,” the security staff told investigators.

However, the two returned to the shop after 45 minutes and picked up a pair of jeans, a wallet and two pair of shoes.

“One of them entered the dressing room and after they stepped out of the shop, the security gate did not beep this time too. I followed them and caught them near their car while calling police. When asked about the stolen items, they replied that they are in the car,” the security man said.

Retail Profiling Lawsuits: Businesses Would Rather Lose Merchandise Than Detain Potential Shoplifters

SAN FRANCISCO (KPIX 5) — Retailers lose $45 billion dollars annually to theft, about $10 billion of that to shoplifting.

Yet the last thing stores may want to do is catch a thief.

Chris Mcgoey knows all the tricks. He’s been in the loss prevention business for almost 40 years. On an undercover tour of a big box store he showed us how shoplifters stash things and how to pick out what he calls “likely candidates”, like women with big purses in shopping carts. Or shoppers with baby carriers.

Mcgoey admits it’s profiling. “It’s not based on race, religion, sex, age, any of those, it’s really based on behavior. But he says these days some retailers would rather lose the merchandise than detain anyone. “America is just shaking in their boots, they are scared. If you stop someone and they haven’t stolen anything you are sued.”

Earlier this year Barneys in New York paid half a million dollars to settle accusations it was singling out minority shoppers. The state launched an investigation after 19-year-old Trayon Christian sued the store for detaining him and questioning his ability to pay for an expensive belt.

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Anti-shoplifting training, anti-theft devices, Employee Theft, Loss Prevention Training, Prevent Shoplifting, Retail Anti Theft Devices, retail security and monitoring, security devices

The 3 Essentials for a First-rate Loss Prevention Program

March 11, 2015 by Staff Editor Leave a Comment

It’s never been more profitable to be a shoplifter. In the past it was difficult to make money from stolen merchandise. A thief commonly used a third party or “fence” to offload the product. Fencing was a secretive, high risk job and “average” shoplifters had no way to establish a connection with one. If they did have one he got a share of the profits, often the biggest cut.

But, the internet has dramatically changed this process. It allows shoplifters to function as their own fence. They’re able to eliminate the middleman and sell directly to, usually, unsuspecting people. Selling stolen goods is easier, safer and more profitable than ever before. Therefore, shoplifting is on the rise and, to stay in business, stores have to be diligent when creating a loss prevention program.

There are 3 main essentials needed for a successful loss prevention program. The 1^st and most important is proper store management. This topic is thoroughly discussed in other articles on this site. But, while vital, good management goes only so far. Ultimately, an effective plan also includes 2 other essentials – towers coupled with security labels and hard tags.

Towers are the 2^nd essential piece of a successful security plan. Checkpoint System is the leading provider of towers. Checkpoint’s towers are plastic or metal structures and are positioned on both sides of an entrance. They sound an alarm when an active Checkpoint tag or label, which is attached to the merchandise, passes through them. Many shoplifters will by-pass a store with towers and, instead, target one without them.

A 3^rd essential is hard tags and labels – Checkpoint has many types of each. Tags are applied to items such as clothing, shoes, and purses; they need a special tool to be removed. Some tags are filled with ink and will open if not properly removed. Labels are attached to things like books, DVDs, cosmetics and are deactivated at the point of sale. When shoplifters see a label or tag, they’ll often move on to merchandise that’s not so well protected.

Making a store a difficult target can keep thieves out of it, which creates a more pleasant, safer environment for employees and shoppers. Just as importantly, Checkpoint can be the difference between staying in business or closing the doors. Checkpoint System, coupled with security savvy management, can go a long way towards producing a profitable store.

Nicole Abbott is a writer and psycho-therapist with over 20 years of experience in the fields of mental health and addiction. She’s an educator, consultant, lecturer, trainer and facilitator, who has conducted over 200 workshops, trainings, presentations, college classes and seminars.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, Retail Anti Theft Devices, retail security and monitoring, security devices, surveillance

Video Surveillance In Your Store

March 9, 2015 by Staff Editor Leave a Comment

Surveillance in your store can be a big deterrent for shoplifting and employee theft. The knowledge that your store is protected, or at least that there are cameras capturing images of employees and customers, can help you save thousand of dollars yearly. Employee theft is costing the retail industry millions of dollars every year and installing a type of security in your store can help you reduce the shrinkage you are experiencing.

For more about shoplifting, follow the links below.

Surveillance best cure for shoplifting

Aside from the holiday seasons where people aimlessly weave through cart-to-cart traffic down aisles in department or convenience stores, it’s difficult to predict when there will be spike in theft.

Particularly, shoplifting.

As of Friday, the Hutchinson Police Department has worked two cases of shoplifting this month. Granted, only nine unpredictably cold and not-so cold days have scooted by in March. But January and February were hot months for shoplifting with officers responding to 61 combined reported cases of shoplifting, according to Hutchinson Police bulletin archives.

There were 24 reports of shoplifting in December. Numbers from the archive bulletin suggests the shoplifting occurs at three of the most recognizable stores in the city: Wal-Mart, Dillons and various Kwik Shops.

Hastings, Target, J.C. Penney and Kohl’s are also sprinkled on the list of popularly shoplifted stores.

But why the heart-monitor like spike in thefts recently? Police Lt. Martin Robertson isn’t sure of the answer himself.

US based company allows shoplifters to avoid the police by charging them for an online course

IN THE game of Monopoly, there’s nothing better (apart from maybe winning free parking) than turning over that community chest card to see the words “get out of jail free.”

Now imagine that someone hands you that card after you’ve committed a criminal act in real life.

That is essentially what one company based in the United States is doing.

The Corrective Education Company (CEC) is a start-up, and works with businesses to offer shoplifters an alternative path to reform other than the boring old legal system.

Founded by a pair of Harvard graduates, it offers the chance for apprehended shoplifters to pay $411 ($US320) in order to avoid a phone call to the boys in blue.

That money goes towards the cost of attending an online course which is run by CEC that claims to reduce the likelihood of recidivism for the individual.

The obliging shop owners who refer the shoplifters get a cut of about $US40 per offender, and according to Slate around 20,000 offenders have so far coughed up for the program.

That works out to be $7.2 million that CEC has profited by blatantly circumventing the established judicial system.

Walgreens Shoplifting Duo Captured On Surveillance

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, anti-thefts devices, Prevent Shoplifting, prevent shrinkage, retail security and monitoring, security devices, surveillance

Vendor/Contractor Fraud

March 2, 2015 by admin Leave a Comment

I want you to sit back and think about something for a minute. Other than your employees, how many other peopled have worked in your store last month? Drawing a blank? Think about those lights that needed replacing, or the compactor that needed repair, or even the new display cases that were installed overnight a few weeks back. While you may realize it, you more than likely have a great deal of contactors coming in and out of your store on a fairly frequent basis. These contractors and vendors have access to everything and employee has and sometimes more.

Not only do you have to consider product and equipment theft, what about data or intellectual property theft? Company sales figures, or closely guarded industry secrets? A single thumb drive and a bit of know-how can get a wealth of information into the wrong hands. Thinking about all of that, you probably want to repair your own sinks from now on…

Just as with any LP process, you have to implement a strategy that allows you to identify and react to theft, all while maintain the trust of the 99.9% of your customers that are honest. A few simple policies and best practices can protect your business from vendor/contractor theft.

First, you should establish a check in procedure. Vendors, or outside contractors should have to check in with the manager and then be taken to the area of the store that requires their services. If the area is a sensitive section of the store, or requires an exterior doors to be opened for an long period, a supervisor or key employee should remain in that area. In addition, a simple package inspection policy should be adopted and all employees, and outside vendor should be made to adhere to that policy. Basically, anyone exiting the store that works for you would have any bag, or box inspected by a store manager prior to them leaving the store.

An electronics policy should also be adopted around sensitive areas of the store. Vendors, as well as employees should be barred from using an external hard drive on any store computer system. Recording devices (cellphones) should not be allowed in sales offices, or anywhere that sensitive data is stored. You should also restrict any store Wi-Fi to store management only, and for the sole purpose of conducting company business.

While it may not be an area that you closely associate with shrink and loss, vendor compliance and control can become a major contributor to lost profits in your store. By implementing a few simple steps and practices, you can sure that you are doing all you can to prevent unnecessary loses to your store and company.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-thefts devices, EAS Devices, Employee Theft, Retail Anti Theft Devices, retail security, retail security and monitoring

Shoplifting Programs and News

February 4, 2015 by admin Leave a Comment

If you own a retail store or are managing one, shoplifting is a crime you have to deal with in a daily basis. Shoplifting and employee theft are two of the most damaging crimes for a retail store’s bottom line. If your store has policies regarding shoplifting and employee theft, such policies should be visible; they may serve as a deterrent to shoplifters entering your store, or employees thinking they can get away with stealing merchandise. For more news about shoplifting follow the links below.

Dover calls new shoplifting mugshot program a success

A controversial approach to reducing shoplifting by posting suspects’ arrest photos has been declared a success in Dover, despite complaints about violations of civil rights.

The four-month pilot project called the “Shoplifter Notification Program,” which started in August, produced a 19 percent drop in such crimes, city police said.

“That was huge,” said Cpl. Mark Hoffman, Dover Police Department’s public information officer, who suggested the project after seeing similar efforts on other forces’ webpages.

The drop in shoplifting was especially significant, he said, because the project period included the end-of-year holidays.

“That’s our busiest time of year for shoplifting,” Hoffman said, adding stores also are their busiest and youngsters with school vacations and time on their hands tend to raise the rate of merchandise thefts.

Davenport denies lawsuit claims of police brutality in shoplifting incident

The city of Davenport denies allegations of police brutality in its response to a lawsuit filed by a woman videotaped being hit by an officer after she was accused of shoplifting at Von Maur.

Brandie Redell, 36, of Davenport, filed the civil rights lawsuit in Davenport federal court last July, alleging she was beaten so severely she was hospitalized with a concussion and suffered vision loss.

The suit, filed against the city and Davenport police officers Scott Crow and Vincent Jacobsen, claims the police department makes a habit of “using excessive force against police suspects” and fails to properly discipline offending officers.

In a response filed last week, the city said the officers were justified in their use of force.

Man busted for shoplifting on motorized shopping-cart

SOUTH EUCLID, OH –It’s a miracle! A man on a motorized shopping-cart managed to stand up and run away when security guards tried to stop him from shoplifting at an Ohio Walmart.

An off-duty officer working security at the Walmart in South Euclid, Ohio noticed the man enter the store riding on the cart which is usually reserved for customers who need assistance walking.

A short time later, the man rolled out of the front entrance and set off the alarm. The officer began asking the man if he had any unpaid merchandise.

That’s when the man jumped out of the cart and high-tailed it out into the parking lot.

“We are so lucky to be police officers because every now and then we get the opportunity to

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Nano Gate, Alpha Security, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, Employee Theft, Shoplifting Prevention

What’s Trending in the World of Shoplifting?

January 8, 2015 by admin Leave a Comment

Wouldn’t it be nice if the criminal world was as easy as Twitter? You could just go online and look at what’s trending and then take proactive steps to stem any potential losses. That would be great! Unfortunately, criminals, especially thieves rarely broadcast their intentions. It’s up to the loss prevention community and local law enforcement to share these trends amongst each other in order to combat shoplifting.

You may or may not be aware, but shoplifting is much more than just putting one item in your purse, or pockets. I routinely see individuals and groups operating some very sophisticated fraud schemes in order to remove product from the store. One of those trends that have become more and more prevalent over the past year has involved refund fraud. I had a very complex case that spanned several months that was more sophisticated than anything I had every come across in all my years conducting Loss Prevention Investigations.

The basic storyline is that a brick and mortar store front was employing individuals to target stores for small, high dollar merchandise. Once the product was stolen from one store, it would then be brought to a second store where a refund was given for the product in the form of store credit. That individual would then utilize that credit in order to purchase a high end electronic item. The item, along with the receipt was sold to the store front. This is where it takes a more complex turn.

The store owners would then arrive back at the store with the receipt and electronic item and ask to exchange it for other product. This was routinely conducted with footwear or apparel items. The store owners would conduct the exchange and, on most occasions, pay a difference in cash of anywhere between $10 and $20.

Over several days, the store owners would return to my store and refund each item that was purchased during that exchange transaction. Since the receipt showed they paid a cash balance, inattentive store personnel would always give them a full cash refund. Did I lose you?

Essentially, I was at a loss 5 times for the same product. First it was stolen. Second, I gave them a store credit for stolen goods. Third, the store credit was then spent. Fourth, the product the credit was spent on was exchanged for additional merchandise. Fifth, we gave them cash. It was incredible once it was all uncovered. This group has figured out a way to essentially launder stolen goods and with a few steps and some patience, get cash. All while keeping the appearance of a legitimate transaction. All told, our stores lost well over $100k to this scam.

It was an expensive lesson to learn, but it goes to show just how creative people can be when it comes to fraud. While this was the first time I had ever seen something of this complexity, I can assure you that in the next year, someone will come up with an even more complex method to defraud retailers.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Alpha Security, Alpha Spider Wrap, Anti-shoplifting training, anti-theft devices, anti-thefts devices, Employee Theft, Loss Prevention Seminar, Loss Prevention Workshop, Prevent Shoplifting, prevent shrinkage

Building Partnerships

January 5, 2015 by admin Leave a Comment

Every store should have a way to build reliable partnerships with local law enforcement. For some jurisdictions, that could mean the sheriff’s department, city or county police. In some rural areas, that might even mean the state police department. There are many was to build these partnerships, and your store’s safety and security will benefit greatly from those partnerships.

What you are looking for is to have periodic visits from these law enforcement officers. Ever wonder why you see police at a donut shop? For one, the shop owners frequently give free or reduced prices on coffee to these officers. It is a nice gesture to these officers, but also an incentive to get them to frequent the shop. The more often police are in the shop chatting, drinking coffee etc, the less likely the shop is to be robbed.

Coffee and donut shops are often open late, and have only one or two people working. This makes them prime targets for robberies. Having an increased police presence helps to reduce the risk. If something were to happen, the police would quickly respond not just because that is their job, but also because they are probably on a first name basis with that shop owner and its employees. For these businesses, a cup of free coffee is a small price to pay for that kind of security and peace of mind.

Depending on the kind of store you have, giving product out for free or at a discount may not be feasible. That doesn’t mean you can’t make it worth it for local law enforcement to stop by periodically. Even though most departments shy away from case quotas, officers who do produce cases are given raises and promotions over those who don’t. By building partnerships with officers you can get some extra help with your suspected shoplifters, reduce losses, and help out your local community by giving local law enforcement tips on suspected criminal activity in your store.

Most law enforcement agencies have a community resource officer. They would be one of the first points contact to start building a relationship with. Asking if they would be willing to do a safety or security presentation for an employee meeting is a good way to break the ice. It is the first step in letting the local police know they are welcome in your store.

One of the next ways is to see if there is a retail anti theft task force set up. If so, ask if they would be interested in putting your store on their list. These task forces go into local businesses, in particular around busy holiday shopping seasons, and look for shoplifters, credit fraud, and other criminal scams. The task force will send officers into stores, generally in plainclothes, to watch cameras or do floor surveillance to spot any criminal activity.

These task forces are a free service to their retail community. While these officers are in your store, you can talk to them about what kinds of thefts you are experiencing. It also gives you an opportunity to connect with the officers and get to know who they are. These officers can become invaluable resources even after the task force is done for the season.

You now have specific officers that you can call if you have a shoplifter in your custody, or experienced a high dollar theft. The officers might be more willing to do some investigative legwork on your case, if you have built a partnership with them. Of course, part of the partnership is showing restraint and professionalism to these officers.

It is not suggested that you call them for every low dollar shortage that walk out your door, or for people who “seem suspicious” but you have no corroborating evidence. There are still laws that must be upheld regarding liable and slander. If you consistently show poor decisions about which cases to call on, you will tarnish your reputation negating any usefulness of your partnership. Remember, there is a difference between offering viable leads to confirmed inventory losses, and crying wolf over every gut feeling you have.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha High Theft Solutions, Anti-shoplifting training, anti-theft tags, anti-thefts devices, EAS Devices, Employee Theft, Loss Prevention Training, mobile POS loss prevention, Periodic inventory, Perpetual Inventory