Anti-shoplifting training

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

You Can Teach an Old Dog New Tricks…Me

March 2, 2015 by admin Leave a Comment

I was recently the Keynote Speaker at a retail conference. The audience was very engaged! As a speaker and trainer I like those situations best.

We had many great questions and comments. But there is one that I continue to think about. Someone mentioned that a way that shoplifters are now discouraging you and your staff from providing customer service is by using a cell phone.

Let’s step back. The first key to preventing shoplifting is the liberal application of customer service. Impulse, armature and professional shoplifters cannot ply their evil trade if your staff is customer servicing them to death.

So now enters the cell phone. If the shoplifter is on a call, real or pretend then we are likely, out of courtesy not to approach them. What a wonderful way to keep us away from them in our own store! This is something I had never considered before. In fact what I have been thinking about is that there are other tools they could use to accomplish the same thing.

Listening to music with a head set on, talking on a two-way radio as if it is work related or how about being busy with electronic tablet or phone with email. Again any situation they can create to keep us at arm’s length.

However, there is a well-established solution to this. All of these techniques fall under the category of distraction or diversion. The solution to this tactic is simply MORE customer service.

Those actions by a “customer” are at a minimum rude. It is also a red flag that you should now pay attention to. Being in your store, taking your time and resources and being on the phone is rude. But we do not want to respond in kind. Instead apply an even more generous application of customer service.

Stay with them, keep your eye on them and make sure they know it. A legitimate customer will feel it and get off the phone, device…. The shoplifter will have a different reaction. They will get frustrated. You are frustrating their efforts to obtain a bit of privacy so they can conceal your merchandise.

Frustrating a shoplifter is our goal. Drive them crazy and send them on their way hopefully never to be seen again, at least by you!

You can reach Bill Bregar at 770-426-7593 x101 or at [email protected]. Bill has over 35 years of experience in the Loss Prevention industry. He has personally investigated over 2300 employees for theft and dealt with shoplifting all the way from his days of apprehending shoplifters as a store detective to the development of policy and procedure for several major retail chains in the role of Director of Loss Prevention.

Filed Under: Featured Tagged With: Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, Loss Prevention Seminar, Loss Prevention Training, Loss Prevention Workshop, mobile POS loss prevention, Retail Anti Theft Devices, retail security, retail security and monitoring, security devices, Shoplifting Prevention

Shoplifting Apprehension that Turn Violent

March 2, 2015 by admin Leave a Comment

Over the past two years or so, I’ve managed well over 1,000 shoplifting cases. Just like any other job, it starts to become a routine. You watch for selection, intent, pass the points of sale, exit. Approach, process, and on to the next one. It’s strange that in my line of work the daily routine is based solely on someone committing a crime. Well, what happens when the apprehensions is not so routine? What should you, or your team do if a shoplifter becomes confrontational, or even physically violent?

I’ve seen several instances of shoplifters becoming physically violent in the very recent past. Member of my team, including myself, have been physically assaulted and even pepper sprayed by shoplifting suspects. I’ve even see greater acts of violence at surrounding retailers. Is that really worth a $50 item? Absolutely not. We are seeing very often that drug addicts, who are stealing to support their habit are committing these crimes. Their minds are focused on their addiction and they will do whatever is necessary to avoid capture, even if that means harming you or a member of your team. The best defense is always a good offense, and the first step in remaining safe in this climate is to analyze the risk associated with each and every shoplifting detention.

I train my teams to analyze the inherent risk of a stop on two simple factors. 1) What is the item being stolen? Is it on its own a weapon? 2) The perceived state of mind of the suspect. Does your suspect appear to be under the influence of drugs, or alcohol? If you can answer yes to both, then there’s a higher chance of the risk of violence and it may be a better idea to allow law enforcement to intervene. I stress this every single day with my team. They all know that there is nothing in that entire store that is worth jeopardizing their safety. Sometimes, though, violence may come from the most unsuspecting source, and you should know how to react during these instances.

If you find yourself in a situation when confronted at the time of apprehension with violence, you should immediately terminate the apprehension and allow the suspect to leave… with or, without the merchandise. Never should you put yourself, your team or your customer’s safety in jeopardy over store merchandise. If you’re confronted and need to defend yourself, then do so in as safe a manner as possible. Training your LP staff in a basic self-defense course is a great tool that is being more widely adopted at more retailers.

In addition to those common sense steps, your company should also have clearly written and accessible policies regarding shoplifting apprehensions and the use of force. If you are in charge of these policies, you should set a clear expectation of how store personnel should contact a shoplifter, as well as details regarding the use of force. The last thing you want is for an employee to get severely injured while trying to protect assets come back with a lawsuit claiming they were subjected to an unsafe work environment. Without clear, written policies, that could be a reality.

Criminals will continue to steal, and a percentage will no doubt become violent in some way. In the LP filed, it is an occupational hazard. With the proper training and common sense policies, you can ensure the safety of your teams. Several states are also currently looking into passing new legislation that would enhance the charge for shoplifters who assault an LP agent. Some states also have laws on the books that turn a shoplifting into a strong arm robbery under these circumstances. If these were to become a nationwide standard, we may be able to start reversing this very disturbing trend.

Filed Under: Featured Tagged With: Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, Employee Theft, Loss Prevention Seminar, Loss Prevention Seminars, Loss Prevention Training, Loss Prevention Workshop, shoplifting violence, 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

Awareness and Steps to Prevent Shoplifting

February 18, 2015 by admin Leave a Comment

There are shoplifting rings that target stores all across our country. People get arrested and charged with shoplifting every day. Merchandise is stolen by customers and employees alike. It is quite impossible to prevent shoplifting 100% of the time, but you and your employees can take steps to prevent or mitigate some of the losses. Recognizing and understanding the items that are a clear target for shoplifters can help you establish some type of security around those items. Educating your management and employees about steps to help prevent shoplifting can help you deter possible shoplifters in the future.

Follow the links below for more information about shoplifting.

5 Quick and Low-Tech Tips To Prevent Shoplifting in Your Retail Store

As a small business retailer, it’s not always easy to just throw money at problems like shoplifting and take advantage of all the technology that big box retailers may be privy to. Whether it’s cameras, door scanners, or facial-recognition software, sometimes their big-ticket cost just doesn’t fit with your small business security budget.

But when you recognize facts like shoplifting costing retailers upwards of $13 billion each year, it’s important to identify it as a problem that needs to be dealt with.

So, what’s a boutique owner to do? In this post, I’ll be looking at cost-effective and low-tech tactics that you can start implementing right away.

Let’s dive in.

1. Keep Your Store Organized and Products Well-Placed

How easy should it be to identify whether something has gone “missing” from your store? Empty space on your shelves should be enough of a visual cue to signal something has gone wrong.

How to Prevent Shoplifting With Effective Retail Loss Prevention

Shoplifting occurs every day in retail stores around the world. There are times when the items truly are needed, but others, just have a need to break the law. Retail loss prevention teams and systems are available to prevent shoplifting from your retail store.

You cannot be too careful these days and reduced profits mean that the store is not making enough and the owner is not earning enough to support him or her family.

Plain Clothed Loss Prevention Team

Many retailers are using plain clothed security personnel to help loss prevention. These individuals watch suspicious customers and alert store staff.

The video cameras are closely monitored and if any items appear to be missing from their pile upon exiting the dressing rooms, the plain clothed security officer will detain the shoplifter.

10 Steps to prevent shoplifting

Theft is a serious threat to the bottom lines of retail businesses. Shoplifting is prevalent due to the fact that is relatively easy to commit and has minimal risk when compared to other crimes. Shoplifters come in the form of all races, ages and economic status. In fact, in many cases shoplifters have enough money on their person to purchase the items they are attempting to steal. Shoplifters look like everyday people. In the case of shoplifting, shoplifters are everyday people who steal. According to the National Association for Shoplifting Prevention more than $13 billion worth of goods are stolen from retailers each year. Shoplifting losses affect every retailer regardless of what they sell. These losses result in profits and increased prices. Here are 10 steps that retailers can take to prevent shoplifting from their stores.

Post warning signs: Make those that enter your store aware of the consequences of stealing from your store. Determine your shoplifting policy and communicate it to your customers with posted signs. Signs should warn that shoplifting will result in prosecution.

Filed Under: Shoplifting Prevention Tagged With: Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, Employee Theft, Prevent Shoplifting, prevent shrinkage, Retail Anti Theft Devices, retail security and monitoring, security devices, Shoplifting Prevention, surveillance

Preventing Shoplifting

February 13, 2015 by admin Leave a Comment

Managers in your store can play an important role in preventing shoplifting. Being aware of the procedures to take when a shoplifting incident occurs protects your employees and your store alike. Shoplifting education programs through the NASP can help organizations prevent shoplifting and educate their employees. The rules and procedures to take by employees when a shoplifting incident occurs can save lives, medical bills and negative publicity occurring from a shoplifting incident. Follow the links below for more news about shoplifting.

Walmart Manager Says He Was Fired After Stopping Alleged Shoplifter

For several years now, Consumerist has reported on variety of stories where a former Walmart employee says they were fired either stopping a shoplifter or defending themselves in an altercation with customers. The latest such incident involves the manager of an Alabama Walmart who claims he was dismissed after stopping an alleged repeat offender from shoplifting again.

AL.com reports that the former manager was blindsided when he was fired a month after he chased and confronted a shoplifter attempting to steal nearly $1,000 worth of merchandise.

The man says the incident occurred during the night shift, when he heard an alarm signaling that an emergency door was open.

When the manager reached the door, he saw a man he described as an habitual shoplifter leaving with a cart full of merchandise.

“When I caught up to the individual he turned and grabbed me, struck me in the face and dragged me to the ground,” the manager says. “I got loose and was holding him down when security personnel from an apartment complex across the street came to help until police arrived.”

VIDEO: Teens ‘Terrorize’ Marysville Grocery Store

MARYSVILLE-

Five teenagers entered a Marysville Save Mart around 1:40 p.m. Wednesday and “terrorized the store,” police say.

A Marysville Police spokesperson told FOX40 four teenage girls and one teenage boy vandalized the store aisle by aisle, shouting out gang slogans and throwing grocery items on the ground. One of those items, according to police, was a bottle of oil, which caused a 64-year-old man to slip and fall.

The retired Air Force veteran was taken to Rideout Medical Center and treated for a potentially fractured elbow, according to police.

Store managers told officers on scene that employees tried to stop the teenagers, but one punched the manager in the face. At some point, police say the teenagers went to the liquor aisle, opened a bottle of alcohol, and started drinking.

The two officers who responded to the incident have minor injuries after one of the teen’s resisted arrest.

Arrests made in two Kroger shoplifting incidents

Two shoplifting incidents were reported Thursday at the Kroger grocery story on U.S. Highway 29, according to Athens-Clarke County police reports.

In one incident, Mary Ashley Moss, 22, of a Johns Creek, Ga., address was charged with shoplifting after swapping price tags on some items and concealing other items as she checked out of the store. According to a police report, Moss told Kroger managers “she did not think it was stealing since she was paying for something in the process.” According to police, Moss was attempting to take $50 worth of hygiene products. She was released from the Clarke County Jail after posting a $1,500 bond.

In the other incident, William Joseph Adams II, 47, of Timber Ridge Lane in Colbert, was charged with shoplifting after allegedly taking $75 worth of meat from the store.

Adams left the store in a blue Ford Fiesta that was stopped shortly after the incident, headed toward Madison County, by Athens-Clarke police. Adams was released from the Clarke County Jail after posting a $5,000 bond.

Filed Under: Shoplifting Prevention Tagged With: Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, Loss Prevention Seminars, Loss Prevention Workshop, Prevent Shoplifting, prevent shrinkage, Retail Anti Theft Devices, retail security and monitoring, Shoplifting Prevention

Profit and Loss – It’s All About the Basics

February 13, 2015 by admin Leave a Comment

Most people don’t mind doing what they should do when it’s easy or when it doesn’t get in the way of what they want to do. However, it takes discipline and maturity for people to do the things that should be done, whether they want to or not. Discipline and maturity are usually the differences between a successful manager and an unsuccessful one.

Successful managers know that being conscientious about preventing shoplifting is an on-going process of training and vigilance, which is why most unsuccessful ones don’t do it. Ineffective managers don’t develop and monitor the effective daily habits, for themselves and their employees, required to prevent shoplifting loss.

It’s unfortunate, because the margins between loss and profit are usually so tight that unaddressed loss can mean the difference between the business staying open or closing. There are many quick and practical ways that managers can help their employees develop the daily awareness and habits required to limit the opportunity for customer fraud. One of the most effective is also one of the most basic.

Most people are quick forgetters and they need on-going training (print, video, classroom style, one-on-one) to help them remember the company’s loss prevention plan. Once, during the orientation, is definitely not enough. Training modules which are short (about 15 minutes), monthly and topic specific (i.e. shoplifting techniques, proper confrontation of suspect, store’s prosecution policy) can be very productive.

Productive training makes sure everyone receives the same information and reinforces the company’s expectations and policies. It will, also, instruct, remind and reinforce the employee’s responsibility in preventing loss. Education and understanding is built on repetition, so repeatedly hearing who, what, when, where, how and why people steal can make workers more conscientious.

However, this is where the maturity and discipline of the manager is vital. If not conducted properly, training can hinder rather than help. The training time and materials shouldn’t be used for managers to pontificate, story tell or criticize, they should be teaching moments only. After all, it’s the failing of their managers when employees are expected to know things that they haven’t been told.

Filed Under: Featured Tagged With: Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, Employee Theft, Periodic inventory, Prevent Shoplifting, prevent shrinkage, surveillance

Start 2015 With Loss Prevention Best Practices For A More Profitable Year

January 9, 2015 by admin Leave a Comment

Now is the time to go on the attack! Fix your loss issues before they cost you this year’s profit margin. To do this, in many cases requires you to change the way you look at losses. First and foremost, if you are not leading with an “LP” mindset, how can you expect others to follow and support your goals? Loss prevention should always enter into decisions even if in a minor way. Decisions on how and where to display merchandise and the standards you set for employees to follow, are just the start.

There are three main sources of loss in a retail environment: External (shoplifters), internal (employees) and paperwork errors.

Let us look at two of these, starting with internal. My experience tells me that about 10% of employees in a given retail store are involved in theft. You may be saying to yourself that “my employees wouldn’t do that to me”. If you find yourself thinking that way, you are actually at a greater risk than most. Because you are in denial. People will steal regardless of how good you are to them, how much you pay them, how many times you have helped them and so on.

Often when I hear someone say that, we end up finding out that they have some of the largest losses. I know this may sound cynical but it is the truth based on my experience and thousands of employee theft investigation I have personally conducted. So what can you do to prevent employee theft?

To start, understand that employees must be held accountable. Employees can steal four different things from you: cash, merchandise, supplies and time. All of these have value including supplies. If you operate at a typical profit margin of 2% after taxes a loss of $100 will cost you $5000 ($100/0.02). So even a twelve pack of toilet paper has value, not to mention the serious morale issue when you don’t have toilet paper! Employees need to understand that the only thing they are allowed to remove from the store is the air in their lungs.

On top of this, what message are you sending employees by your actions? For example, if you have a policy that cash register shortages under $5.00 are not investigated and a cashier held accountable, then you are telling everyone that it is okay to steal up to $4.99.

Look for employees that wholeheartedly share, understand, support (not just to your face) and practice your LP policies. These employees should be held up to be the standard. Others will then follow. Those who don’t, well… you get the picture. We have a great sample document you can use for your LP employee handbook. It sets the standards and lets them know from the very beginning what you expect, tolerate and will not tolerate. If you would like a free copy in Word format that you can customize for your use, please send me an email.

Shoplifters, those horrible people that come into your store and try to steal everything they can. Okay I will say up front, we sell Checkpoint anti-shoplifting systems. These systems are used by most major retailers worldwide and for a reason. They shut down a huge amount of shoplifting. They are commercial grade and meant to stand up to the tough retail environment. With that aside, let me ask you this, Why are you not using one? A Checkpoint System is a proven way to bring your shoplifting losses under control.

Other best practices include the use of CCTV. However, you must have the correct expectations for this. CCTV is a reactive measure. Shoplifters are rarely deterred by cameras as they know you do not have the payroll to watch them all the time or even when they are skulking around in your store. CCTV is good for employee theft prevention and investigation. You can use it in a somewhat proactive way by bringing an employee in, showing them a 60 second clip of them doing something good and then complimenting them on a job well done. They leave with a good feeling but say to themselves and others “wow I guess he/she is watching”. Do that monthly and see what happens. Believe me, word will get around.

Employee training is something we almost always overlook. Or we just say that they are learning as they go. You invest a lot of effort and money into a new hire. Spend a few hours with a structured outline and make sure they understand what their new job is, the standards you have and what you expect them to do each and every day. The document I offered you above for free will help with this.

Pre-employment screening is also overlooked. For example, have you ever confirmed that a person you are looking to hire can actually count money? Do you test for that? Put $100 on the table and see if they can make correct change without the assistance of the cash register. If they cannot, do you really want them handling your cash?

Paperwork errors are just as deadly as any other form of loss. Keeping a correct inventory not only helps with reordering but is a critical component of controlling theft. How can you react to loss, if you do not know what items are stolen? For example, you might not know that a particular item is being stolen because shoplifters have found a demand for it elsewhere. If you suspect that a particular item is being targeted, then conduct what is called a cycle count on it. A cycle count simply means you are counting it on a daily, weekly or biweekly basis. Comparing that information to your sales of that item will allow you to react quickly before it is too late and the losses become severe.

Are you ensuring that your employees are not making mistakes in their work and then not correcting them? You also need to set the standard that you are watching and reviewing. For example, if an employee is checking-in a shipment and they are to piece count every item, then follow through by picking up the manifest that they just did and spot check their counts on a few items. When they get it right, complement them. If they made mistakes, show them their errors and let them know how the job is to be done and the standard. By the way there are vendors that will try to short your shipment hoping that you don’t check. Vendors and shippers also have employee theft issues and you do not want to be left holding the bag for their issues. I have caught major shipping company employees cutting open the bottom of boxes removing merchandise and then taping the box back up. All of this is done on the truck before they arrive at your business.

I realize that much of this is common sense. However, in many cases we are so busy trying to make money that we forget to keep the money we have on the bottom line. Remember, we are here for you. If you have any questions or issues, we are simply a phone call or email away.

Filed Under: Featured Tagged With: Alpha High Theft Solutions, 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, retail security, security devices, shoplifting, Shoplifting Prevention

Cycle Counts

January 9, 2015 by admin Leave a Comment

With only a distant memory of the holiday shopping season in our minds and spring business just on the horizon, it’s a good time to start focusing on inventory control and accuracy. With the hustle and bustle of the holidays, retailers sometimes lose focus on what’s really important, their inventory. It should be second nature for you to take an annual inventory of your store. The best time to do this is soon after the holiday. Think about it, your store is most likely at a low inventory point, so counting is normally easier, and you have a little extra in the payroll budget due to that month of increased sales. It only makes since. Often though, this annual inventory is the only time some retailers verify their on hand accuracy, however, cycle counts can be of great benefit to any store environment, any time of year.

If you are unfamiliar with cycle counts, just think of them as a mini-inventory focused on a small section of your store. In my experience, conducting a count on high value, or high theft merchandise at least quarterly (monthly is better), can actually help boost sales. For example, let’s say that you sell several styles of pocket knives. Your sales are good in this category, but your shrink is always high. You know you lose knives daily due to theft, so your on hand counts are always a little off. If you are replenished based on those counts, then you may not be getting the product you need, which will then hurt your ability to sell that product. Not only is the theft creating a loss, but now you are losing sales because your customers can’t purchase a knife you don’t have. If you waited an entire year to conduct an inventory, you would lose those sales for the entire year. This can easily be corrected through consistent and well planned cycle counts.

Once you have the areas of the store selected that would benefit from a cycle count, plan to do them on a day that is historically a low sales day, like early on a Monday morning. This gives you a chance to get it done with minimal interference from customers, and it won’t mess with your counts if a customer purchases an item you are counting. Take a small section, once a month. Don’t try and count an entire department. Keep it simple and focus on a small area that is normally high shrink. Print out what you should have on the books, and compare it to what you physically have. Simply make any adjustment to your inventory as needed. It’s really that simple and it’s a great way to stay in stock for your customers.

As in the example above, as a manager, or store owner, you know what areas of the store have the most shrink. In order to combat theft and remain in a good stock position throughout the year, you have to have accurate on hand counts. If you implement any inventory adjustments, always ensure that they are conducted by a manager, or one of your most trusted employees. Having an inaccurate count can cause a loss on paper, and/or keep you out of stock even longer. Additionally, this can also help you to identify areas of employee theft as well. If you have items that are shipped to your store that are stored in areas only accessible to employees, you shouldn’t have any losses. For instance, if you have high end sunglasses that are kept locked in a case and you find you are missing hundreds of dollars’ worth of those glasses, chances are you may have an internal theft issue. If you would wait until the end of the year to find that during your annual inventory, you may never be able to uncover the source of the loss.

Filed Under: Featured Tagged With: Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, Employee Theft, Loss Prevention Training, Loss Prevention Workshop, Prevent Shoplifting, prevent shrinkage, Retail Anti Theft Devices, retail security and monitoring, Shoplifting Prevention, surveillance

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.

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