Alpha Nano Gate — Page 28

Shoplifting Prevention and other News

May 29, 2015 by Staff Editor Leave a Comment

Preventing or taking measures to prevent a crime is much easier for a company than dealing with the results and the cost associated with dealing with it. Preventing shoplifting deals with a lot of situations that are unique to a particular store or situation, and the measures to dealing with them is different every time. If you are dealing with shoplifting or employee theft, follow the links below for more information about this topic and some measures you can take to prevent theft in your store.

Shoplifting arrests at Eagan Outlet Mall raise question of bias

A majority of those cited or charged with shoplifting at Eagan’s new outlet mall have been people of color.

As soon as developers broke ground at the Twin Cities Premium Outlets in Eagan, police began preparing for an uptick in traffic and activity in the area.

Nearly 85 percent of those arrested or cited in connection with shoplifting calls at Eagan’s new outlet mall were people of color, according to a Star Tribune analysis of nearly 1,000 calls to police in the first eight months the center was open.

The percentage of blacks and other minorities arrested or charged with shoplifting offenses at Eagan’s Twin Cities Premium Outlet was higher than at nearby Burnsville Center, in all of Minneapolis or at a similar outlet mall in Albertville.

6 Low-Tech Ways to Reduce Shoplifting

It’s our instinct to turn to technology first when solving a problem. However, when it comes to preventing theft in your store, low-tech solutions can also be very effective. Using low-cost and free solutions can sometimes even require less employee training and troubleshooting than some high-tech tools.

Here are 6 low-tech ways to prevent theft in your store:

1. Put out the welcome mat. Shoplifters want to be anonymous and make as little contact with store employees as possible. One of the most effective ways to deter shoplifters is to greet every customer that walks into the store. “Don’t just shout “Good morning” over your shoulder, but make eye contact and greet the customer like you are happy to see them,” says Chris McGoey, security expert and founder ofCrime Doctor, a security firm. “Not only is it good customer service, a simple greeting can make potential shoplifters change their mind about stealing from your store because they know you can identify them.”

SHOPLIFTING PREVENTION TIPS

ANDERSON, SC – The City of Anderson Police Department offers the following shoplifting prevention tips. Shoplifting can cost your business thousands of dollars each year. Shoplifters may be any age, sex, economic, or ethnic background. There is no “typical” shoplifter. Often they work in pairs or groups to divert the clerk’s attention while they steal. Certain times of the day when employees are apt to be less alert are critical: Store opening and closing, during the lunch hour, dinner, or shift changes. Shoplifters learn to take advantage of crowded stores during peak hours.Effective prevention begins with an aware and alert staff.

Protective Measures

• Make the shoplifters feel watched. Elevate the cashier’s platform. Install mirrors that enable cashiers and sales people to see over and around displays. Install one-way glass in offices to enable employees to see into the store without being seen from the floor. Install video surveillance cameras.

• Post signs warning against shoplifting. Emphasize that you will prosecute. The best way to discourage shoplifters and keep your business from being tagged as an easy mark is to take a get- tough attitude and prosecute on the first offense.

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Warning Signals Of Employee Theft

May 29, 2015 by Staff Editor Leave a Comment

As Business Owners we are “hit” with something that we did not or could not see coming. A piece of equipment breaks, a key employee is in an accident and gone for an extended period of time, etc. Many times this also applies to employee theft: We simply did not see it coming.

However, there is a difference with employee theft and the first two examples. Employee theft is usually preceded by warning signals. Many Business Owners and Managers simply do not know what they are or do not see the forest for the trees.

When you look at this list, keep something in mind. One of these things, all by themselves probably mean nothing but in my 35 years of dealing personally with 2300+ employee theft investigations, I have found that most of the time two or more of these factors are present in enough time that a responsible party should have seen the warning signals.

Personal behavior is the key area to watch:

1.Double talk or inconsistencies by an employee who is explaining discrepancies or “errors”.

2.Borrowing, particularly from loan sharks, but also habitual borrowing of any kind.

3.Symptoms of a drug user.

4.Admission of theft from prior employer.

5.Violent temper or other unpleasant behavior, which tends to discourage people from asking questions.

6.Expensive habits such as heavy drinking, drugs, extra-marital affairs.

7.Having more money or spending more than earnings could support:

– Flashes big roll of money

– Buys expensive items–jewelry, car, house, boat

– Has expensive hobby

– Always picks up check at restaurant

– Dresses expensively

8.Disgruntled, dislikes boss or company and complains about being underpaid or overworked.

9.Heavy gambling on horses, cards, numbers, sports, etc.

10.Abnormal fear of, or antagonism toward, security or management personnel.

11.Possession of knife, gun or other weapon.

12.Terrorization of one employee by another.

13.Advocating violence as a way to resolve routine problems.

14.Never takes time off or vacation, comes in during vacation or day off.

15.Concealed family relationships among associates.

16.Chronic employee conversations that cease when management approaches.

17.Employees who never make purchases.

18.Employees who are “wary” of members of management.

19.Constant complainers.

Too often, signals pointing to internal theft, even when noticed, are mistakenly ascribed to chance, error, coincidence, or some other benign circumstance…and the signals are ignored.

Remember, a thief, like a magician, depends on you misinterpreting the obvious…or on his or her ability to confuse you. Don’t be deceived, distracted or misled.

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Who is really running my store? A Strong Case for Employee Background Checks

May 29, 2015 by Staff Editor Leave a Comment

Coming from big box retail, I never realized just how uncommon employee background checks are in terms of smaller businesses, until I worked for one. While it’s standard practice for major retailers to run a pre-employment screening, there are plenty of stores and business out there that simply don’t. This could be a problem. It could be a problem for you, your business, your other employees and your customers. Knowing who you employ shouldn’t be a luxury. It is and should be, a necessity.

One of my first LP jobs was a district manager position for a very small chain of hardware stores. If I recall, they only have about 50 stores. When I first came on, they were building up their LP program and lacked several basic control measures in place. Think EAS, CCTV, exception based reporting and basic physical security measures. Heck, the stores weren’t even equipped with alarm panels. Part of my job was to help build their LP department to better assist the stores in becoming more profitable, assist in inventory reductions as well as limiting a very high turnover rate. After my first couple of weeks, it was clear that in order to help all of those categories, store managers needed to make better hiring decisions and that all starts with a thorough background check.

It didn’t take much convincing and the company eventually found a company to process the screenings for us for a very competitive rate. Part of our new policy was to run the background checks on all of our current store managers. What we found was very disturbing. Out of 50 store managers, nearly 20 of them had extensive criminal records. Records that including prison time, drug and weapons charges, assaults, counterfeiting, forgery, fraud and even murder. These were our store managers! Not surprising, these 20 or so managers all had some of the worst performing stores. Literally, every one of those stores had shrink, turnover and moral issues. Coincidence? I think not.

It took almost two years to fully implement and turnover some of those managers, but eventually the company was able to start with a clean slate. Now, every employee, prior to being offered a position with that company is required to submit to a background check. Anything other than simple misdemeanor traffic violations results in a disqualification of employment. I can tell you that those stores operate more efficiently, there is less shrink and turnover and employee morale high. If your company is not reviewing the backgrounds of your employees, ask yourself, “Who is really running my store?”

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Motive, Means and Opportunity = Occupational Fraud

May 15, 2015 by Staff Editor Leave a Comment

Building a successful small business is a part of the American Dream for many people. Every year millions of dollars, untold hours of sweat equity and unlimited hope are poured into starting and maintaining them. Unfortunately, also every year, occupational fraud is responsible for closing about 30% of these businesses (U.S. Department of Commerce).

Fraud negatively affects smaller companies more than larger ones; they’re simply unable to absorb the loss. Participants in the 2014 Global Fraud Study “Report to the Nations on Occupational Fraud and Abuse” estimated the average small business loses approximately 5% of revenue each year to fraud (The Association of Certified Fraud Examiners).

5% in a small business can mean the difference between a profit or a loss. Therefore, controlling employee theft can be the difference between staying open or closing the doors. It can also influence whether the owner is able to pay himself a living wage or not. Given its potential for harmful impact it’s unfortunate that many owners are unprepared to fight fraud.

Most think it’ll never happen to them, not understanding that probably it’s already happened, is currently happening and/or will happen in the future. Depending on the study 75% — 85% of employees admit that given the “right” circumstances they would or have committed fraud. The right circumstances are usually a combination of motive, means and opportunity.

Motive is the rationalization the employee uses to steal time, money and property from the company. Rationalizations are the reasons people create to justify their behavior and are as varied as the people who make them. These self-deceptions provide the employee with an excuse to steal, even from an employer who they like.

But, motive is not enough for fraud. A person also has to have the means — the ability, knowledge and access — to manipulate the system. A bookkeeper can embezzle money because she knows how to “cook the books”. Stock starts to go out the back door when the warehouse foreman creates an inventory method that only he understands or uses.

Finally, an employee can be willing to steal and know how to do it, but the opportunity must be present. An employee has her shoplifting friends come to the store when the easily distracted manager is working, not when the attentive one is. A clerk learns the cash register camera is unreliable and pockets cash transactions on the days its offline.

Occupational fraud is a broad and all encompassing term, whether it involves petty theft or a multi-million dollar embezzlement scheme. Its cornerstones are motive, means and opportunity. A smart and success business owner will learn its dynamics and use this knowledge to take steps to combat it.

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.

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Mystery Shoppers Can Help Your Bottom Line

May 13, 2015 by Staff Editor Leave a Comment

Brooke wanted to buy a special keepsake to commemorate the birth of a grandchild. She went to a jewelry store in the mall and was planning on spending about $200. There were 2 saleswomen in the store and no other customers. Both of them were having personal conversations on their phones, with one talking about the lack of sales and her concern that she was going to lose her job.

One clerk didn’t acknowledge Brooke, while the other put her finger up in the “just a minute” signal and then turned her back. After looking around for some minutes, and not being waited on, she went to the store next door. Brooke was greeted immediately, helped and spent $250. She repeatedly told the poor service story for months, right up until the store closed.

Everyone has experienced poor customer service in person, on the phone or via a web site, but they probably didn’t complain to the business. When most people are unhappy they show it with their feet and eyes, they’ll leave a store or web site and not return. A customer is 4 times more likely to go to a competitor when the problem is service rather than price or product (Bain & Company).

Obviously, good customer service has a significant impact on the bottom line. A 2% increase in customer retention has the same effect as decreasing costs by 10% (Emmett Murphy & Mark Murphy). Also, it costs about 6 times more to acquire a new customer rather than retaining an existing one. It’s just smart business to try to hang on to them.

One of the ways to evaluate your business’s customer service is to use mystery shoppers. A mystery shopper is an outside person who shops your business (in person, on the phone or via web site), usually purchases a product and evaluates the experience. You set the parameters of the information you want collected — including identifying loss prevention issues.

Mystery shoppers help you determine your problems before they turn into lost revenue. They give you the consumer’s perception of and experience with your customer service, as well as other concerns. It’s an effective way to get real-time feedback. Then, based on the identified problems, you can develop and implement the appropriate corrective procedures and policies.

Smart business owners know the adage that the product gets the customer in the door, but service is what gets her to return. People who contact your business have a need, providing you the opportunity to make a sale. The method of the sale gives you the chance to build positive word of mouth and strong consumer loyalty, which contributes to higher profit margins and a healthy bottom line.

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Background checks and What to Look for

May 4, 2015 by Staff Editor Leave a Comment

When hiring a new employee and you need to do a background check, Do you know what you need to look for to make sure you have the right candidate? First of all, you need to be knowledgeable about the laws regarding background checks in your state. What Washington seems reasonable, may not quite cut it for California and vice versa. Due you due diligence before attempting to do a background check without knowing the Ins and outs of the law. Make sure that your process about hiring and doing background checks are consistent throughout the company, you do not want to be the target of an employee discrimination lawsuit because of different treatment to different possible candidates.

Background Checks Should be Standard Operating Procedure

April 29, 2015 by Staff Editor Leave a Comment

It’s not every day that I bring someone new to my team. I’m a regional Loss Prevention Manager and I manage a very small, but highly motivated and productive team. I need someone to work independently, make good business decisions and get results all with very minimal supervision. I also need someone that is of good moral character and has integrity above all else. Normally, when I have an open position, it will take me weeks to fill. I’m extremely selective and always go with the person that I know will fit into my team the best. So running a background check is one of the first things I do when I have a potential candidate, and it should be something you do as well.

It wasn’t all that long ago when I was looking for a market investigator. The position had been posted for a few weeks and I had already interviewed a group of candidates. I had narrowed it down to three and had to make a hiring decision. They all had tons of experience working investigations, retail operations or law enforcement. I knew who I wanted and made a job offer, which was contingent on the successful completion of a background check. We shook hands and he assured me that his record was clean.

A few days later, my background check company sent the results back to me. I was completely taken back. What seemed like a very qualified, motivated person was a complete fraud. His rap sheet was ¼ mile long and he was recently convicted of several counts of fraud. There was absolutely no way I could bring this person onto my team. Had it not been for a solid background check, this person could have potentially cost me and my company thousands of dollars and untold hours of frustration and heartache. This should be a lesson to any owner out there. It doesn’t matter how clean someone appears to be, how well the interview, or even how great their resume may look, there’s always the potential for skeletons to be hiding just below the surface. Do yourself, and your business a favor and always run a background check on new employees.

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The Truth About Internal Theft

April 29, 2015 by Staff Editor Leave a Comment

Do you know what small business owners and Loss Prevention professionals have in common? In my career, I have found that there is no other business unit in a retail company more concerned about the financial health of the company than the LP department. Our life goal is to SAVE money, all while finding ways to increase sales and profitability, improve margins and assist in improving operational efficiency. Doesn’t that sound like a savvy business owner to you? Reversely, as a small business owner, you’re plagued by theft. You may also find yourself asking, where is that theft coming from?

If you do some online research, you’ll probably find a ton of sites and quotes that all say internal theft causes more financial damage than external. Well, that’s not entirely true. External theft has steadily been on the rise and causes millions of dollars in loss every year. The same also holds true for internal theft. What these statistics do though, is misrepresent internal theft. Yes, your employees sometimes steal from you, but that doesn’t mean 1 out of every 3 are. What that means is those employees who do engage in theft, are taking you for a LOT more than an average shoplifter. Last year alone, personally, I managed over 650 cases. 540 were shoplifters. The dollar amounts associated with those cases were almost the same in both the internal/external category.

Take this for example. Last year, I was contacted by some inventory control guys regarding a specific electronic device at a store location. We looked at a store inventory report and it showed that this one sku was showing a negative 600 on hand at this location. By investigating transaction records, we found these units had been refunded to the store over a period of time. Further investigation showed that a single cashier had conducted nearly 600 refunds of this particular sku and was able to pocket nearly $65,000 in cash from ghost refunds. It would take a lot of shoplifters to equal that dollar amount, but this was only ONE employee.

What I want owners and managers to understand is the reality of the internal theft problem. Understand that not all of your employees are thieves, but that 1% that will steal from you, will steal over and over again. As an owner, you should have internal control measures in place that limit your exposure to losses, and at the very least, a descent CCTV to review those losses when they are uncovered. While shrink will always be a part of life in retail, you have the power and the tools to make that financial impact as less as humanly possible.

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How Are You Preventing Shoplifting?

April 23, 2015 by Staff Editor Leave a Comment

There is always so much debate about how to fight shoplifting in the retail industry. There are loss prevention teams in all the major retail stores, and the management team at any other store is, if not trained at least aware of what to do when facing a shoplifting accident. Millions of dollars are lost due to shoplifting, and the matter seems to get bigger every day. New government policies are making sure shoplifting is punishable accordingly, and retail stores are spending millions of dollars in security and personnel to fight this crime, but why is that not enough? Follow the links to read more about this and other stories.

Shoplifting & Loss Prevention: Do We Need A Fresh Look?

Traditional Loss Prevention is not working. If it was working, the retail world would not still be suffering $35 million or more a day in losses. If it was working, retail owners and store directors would not be going through security and loss prevention officers or the security companies they represent like the free samples they often hand out to customers. Security experts and loss prevention companies would not be constantly scrambling for new accounts, or be in conflict with the accounts they service.

Shoplifting is one of the least detected and most unreported crimes. Stock control in many stores is so deficient that few retailers know how many goods they are losing to shoplifters or their own staff. Statistically, so long as shrinkage does not exceed 2-3% of goods sold, retailers pay little attention to shoplifting. There are also financial incentives for managers to increase the bottom line profits. The bonuses they receive are often based on profit margins, and paying for security services can be a drag on profits. Managers are under constant pressure to justify expenses in a corporate world driven by profit.

Shoplifting Prevention: Top 5 Tips

Shoplifting is of major concern to vendors, so much so that it’s considered normal to budget 10-15% in losses due to store theft. This means each honest customer is paying 10-15% more due to the sins of his fellow shoppers. This budget figure can be reduced by one of your company’s most important assets: Your employees. Real, live, people. While we recommend security cameras, computerized security tagging, door security guards, and even undercover security personnel, this article will address how your employees – often the most involved people with your customers – can also be involved in shoplifting prevention. Here is a Top 5 list of suspicious behavior often exhibited by shoplifters, all of which are easily spotted by employees.

Baggy or oversized clothing. There’s reason it’s called “baggy” – shoplifters are using their clothes as veritable bags, stuffing their stolen ware on their person as if it’s part of their wardrobe.
Hands in pockets, or hidden otherwise. A regular shopper has nothing to hide. In contrast, a shoplifter has everything to hide.
Teaming Up. Shoplifters might hang together when planning or passing along stolen items. If you see two or more people in a group speaking in low tones, looking over their shoulders, diverting their eyes, or of course, stuffing their or others’ pockets, it’s a sound suspicion of illicit activity. Regular shoppers, on the other hand, will likely happily chat away at full volume, and keep their non-purchased items in full view.

Japanese organization considers shared biometric database to combat shoplifting

The National Shoplifting Prevention Organization (NSPO), a nonprofit organization of major Japanese retail businesses, is considering developing a biometric database to share facial recognition data in order to combat shoplifting across Japan, according to a report by The Japan News.

The NSPO said it would consider allowing retail stores to share the facial data with other stores in the same industry or other establishments in the region.

The organization proposes to set up a shared biometric database, and store managers can enter the facial data of shoplifting suspects into said database to continually monitor the suspects as he or she visits other stores.

Many retail stores have been using biometric technology in the past five years, however, the majority establishments that use facial recognition do so without publicly notifying any of their customers.

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-thefts devices, EAS Devices, Employee Theft, Prevent Shoplifting, prevent shrinkage, Retail Anti Theft Devices, security devices

Employee Theft

April 16, 2015 by Staff Editor Leave a Comment

Employee theft according to the research done by many independent companies, is the number one reason stores across the country lose profits. A loss prevention team can help you address the issue and solve it, but most often than not, the theft that is happening in your store can go undetected for many months, or even years before your or your loss prevention team is aware of it. Training and educating your loss prevention team could save you thousand of dollars every year by making sure they attend workshops or seminars that keep them aware of the happenings of loss prevention every year.

Follow the links below to read more about this topic.

U.S. retail workers are No. 1…in employee theft

Light-fingered employees cost American stores (and consumers) more than shoplifters do.

It’s almost Groundhog Day, but for retailers, the holiday season is finally winding down.

“The four months from October through January are when stores see not just their biggest sales volume of the year, but also the most returns and exchanges,” says Ernie Deyle, a 30-year veteran of the retail loss-prevention wars who leads the business consulting practice at London-based data analytics firm Sysrepublic. “Unfortunately, the same four months account for about half of all annual shrinkage.”

That shrinkage, made up of missing goods from shoplifting and other causes, costs U.S. retailers about $42 billion a year, according to the latest Global Retail Theft Barometer, an annual industry study led by Deyle and inventory management firm Checkpoint Systems.

What Wal-Mart U.S. Executives Learned By ‘Walking The Store’

I began my career in the grocery business as a bagger. During that time I observed that my boss, and sometimes his boss and some other senior executives, would “walk the store”. These walks provided the opportunity to perform visual inspections to see what was going right and wrong with the store. We all understood that we needed to be on our toes in case someone from headquarters decided to pull a surprise visit. This is exactly what the senior management of Wal-Mart (NYSE: WMT) U.S. recently did.

Eight months ago Greg Foran took over the U.S division of Wal-Mart, which has struggled with hit and miss same store sales ranging from -1.5% to positive 2.4% over the past five years. He and his team decided they were going to make it their top priority to understand the business under their charge and that included store visitations. On Apr. 1, they gave investors a strategic update indicating that Wal-Mart U. S. may be losing its grip in executing some basic common sense retailing principles. Let’s examine.

Empty shelves

One of my bosses in the grocery industry had a saying, “we sell groceries not real estate” in reference to empty shelves, with the underlying implication that shelves need to be full of merchandise so that customers can buy it. Customers aren’t interested in the air above empty shelves. Greg Foran noted some occurrences of empty shelves and full backrooms in some of the stores he visited:

Group steals bags of cash from D.M. stores, police say

A group of thieves distracted employees at four grocery stores over the weekend and stole bags of cash, including $10,000 from one business, police say.

Three females and a male would enter a store and pretend to buy items while distracting employees to another part of the business, security video shows. One of them would then steal from behind the counter or an office.

They robbed La Cruz 3 and El Palomino on East 14th Street and La Favorita on East Grand Avenue on Saturday. Saigon Market on Euclid Avenue was robbed Sunday morning, according to police reports.

“They seem to be targeting mom-and-pop type places. Businesses like QuikTrip and Kum & Go have rules about dropping off cash once they get to a certain amount,” said Sgt. Jason Halifax of Des Moines Police Department. “It may suggest the suspects had prior knowledge of how the businesses handle cash.”

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