anti-theft tags — Page 23

Credit Card Fraud and the Rollout of EMV

July 2, 2015 by Staff Editor Leave a Comment

Some major changes are taking shape this year to help combat the ever rising prevalence of identity theft and credit card fraud. With it comes some confusion for the small business owner. Credit card fraud (duplicated cards, cloned credit cards, data breaches…etc) losses mount in the hundreds of millions of dollars every year. The numbers are doubling every couple of years. Chances are, you’ve been the victim, you’ve known someone who’s been a victim, or someone (or a group of someones) have used fraudulent credit cards in your store before. The new EMV (Europay, MasterCard and Visa) aims to derail these operations by installing a tiny computer chip on your credit card, instead of using a magnetic strip (which can be very easily duplicated). The “deadline” issued by the major credit card companies is October 15, 2015. That doesn’t mean everyone will be onboard though. You can bet that those large retailers will have the new software and POS systems in place, but where does that leave small businesses? What can you expect from this? And the big question is, how much is it going to cost you?

Basically, the United States is behind most other countries in the developed world with regards to credit card security. It’s time for us to play catch-up, but it could lead to some pretty substantive business expenses. Currently, cards issued in the US have a magnetic strip on the back of the card, which is swiped at the point of sale. That magnetic strip contains unchanging data. If a fraudster (think massive data breaches over the last few years), gets the information contained in the strip, credit cards can be duplicated, replicated and counterfeited, and thus the booming fraudulent credit card industry is born. It’s such a problem that law enforcement is overwhelmed. It’s impossible for them to investigate every time a card is used; they simply do not have the resources. Federal agencies focus on the counterfeiters themselves, but more often than not they are made overseas, far out of the reach of US prosecution. Enter EMV.

New cards, which have already begun hitting consumer pockets, will have a tiny computer chip embedded in the card. At first, they will also contain a magnetic strip (a backup until all businesses are 100% compliant). Unlike the strip, the computer chip will be inserted into the businesses POS via a card reader and a unique transaction code generated for each transaction, making cloned or counterfeit cards virtually impossible. It means a more secured card and less risk on the back of the issuer. In addition, the liability of loss will eventually shift from the issuer to the less EMV compliant party (the business). Basically, if a fraudster uses a fraudulent credit card in your store, you very well could be liable for those charges if you don’t have the proper technology installed.

This radical shift has both positive and negative impacts. First of all, it will reduce brick and mortar credit card fraud. On the opposite side, it will more than likely push the fraud to an e-com platform. Europe has seen this happen over the last few years. This will no doubt happen here as well. Criminals will always find a way. Second, small business owners like yourself will have to incur the cost of updating your payment processing systems. In some cases, it may be a few hundred dollars, but the costs can spiral into the thousands depending on your particular business and how your POS is currently set up. While I think this was a great step in the right direction to minimize fraud, I think the small business community will face some initial costs associate with the transition, as well as a tad bit of frustration.

Filed Under: Featured Tagged With: Alpha 2 Alarm, Alpha 3 Alarm, Alpha Nano Gate, Alpha Security, anti-theft tags, EAS Devices, Georgia shoplifting prevention, Georgia shoplifting systems, Perpetual Inventory, Prevent Shoplifting, prevent shrinkage, racial profiling, Retail Anti Theft Devices, retail security and monitoring, Shoplifting Prevention, shoplifting violence, surveillance

Is Your Store Doing Racial Profiling and Is That Lawful?

June 25, 2015 by Staff Editor Leave a Comment

According to the Civilrights.org website “The U.S. Supreme Court has held that racial profiling violates the constitutional requirement that all persons be accorded equal protection of the law.¹⁹ Recently, many lawsuits that have captured the attention of the public involves lawsuits where not only the accused shoplifters , but employees of these retail stores have cited racial profiling against these giants. Follow more news about this topic by following the links below.

Fashion Chain Zara Profiles Black Shoppers As Potential Thieves, Workers Allege In Report

In early June, Spanish fast fashion chain Zara hit headlines when the longtime in-house lawyer for their American stores sued for $40 million in damages, alleging anti-Semitic, anti-gay discrimination.

Zara called their former counsel’s allegations “shocking,” adding that the company intends to “respond strongly and vigorously” in court.

A report released on Monday suggests the clothier may have deeper troubles, starting with a corporate culture steeped in racism.

Labor advocacy group Center for Popular Democracy surveyed Zara retail employees at six of the chain’s seven New York City stores this past spring following a handful of scandals involving insensitive designs by the fashion company, like a child’s shirt that resembled a Holocaust uniform.

CVS Lawsuit: Security Profiled Minorities for Anti-Shoplifting

CVS was hit with a federal lawsuit on Wednesday after four former store detectives at the drug chain charged their supervisors told them to profile minorities for anti-shoplifting enforcement.

The store detectives, who are also minorities, argued in their lawsuit that they endured racially insulting language and had clear instructions from their bosses to keep an eye on blacks and Hispanics because they were the ones most likely to steal, according to Newsday.

The detectives charged that when they pushed back against the profiling orders they were all fired, they claimed in their suit.

“CVS intentionally targets and racially profiles its Black and Hispanic shoppers based on the highly offensive, discriminatory and ill-founded institutional belief that these minority customers are criminals and thieves,” lawyers for former store detectives stated in their suit.

Natick judge to Macy’s: Stop collecting shoplifting fines

A Natick District Court judge told a lawyer from Macy’s he planned to issue an injunction banning the store from collecting fines from shoplifting suspects, but said he expects Macy’s to ignore the court order.

Judge Douglas Stoddart said Macy’s policy to collect a $500 fine from alleged shoplifters is “ethically wrong.”

“We’re heading into uncharted waters, legally, and I think it needs to be heard by a higher court,” Stoddart told the store’s lawyer, Daniel Field.

In March, Stoddart held a hearing to discuss Macy’s policy. Currently, if suspected shoplifters are caught they are brought into a security office, and told they can pay a $500 fine instead of being sued civilly for the money. However, payment of the $500 does not preclude their arrest. Several people have told Stoddart over the years they were told if they paid the money they wouldn’t be arrested, but still were.

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

Shoplifting Statistics And Apprehensions 2014

June 18, 2015 by Staff Editor Leave a Comment

The losses big retailers like Wal-Mart faces every year are astronomical. The losses though are not absorbed by these big retailers, the losses are then passed to the consumer like you and me by paying higher prices in their store. Shoplifting is a crime that affects everyone. Some big businesses like Wal-Mart can deal with their losses. Shoplifting for small businesses can mean closing their doors for good. Is your store dealing with shoplifting or employee theft? Is it working? Read more about this topic by following the links below.

27th Annual Retail Theft Survey Reports over 1.2 Million Shoplifters and Dishonest Employees Are Apprehended by Just 25 Large U.S. Retailers in 2014

Wesley Chapel, Fla. — More than1.2 million shoplifters and dishonest employees were apprehended in 2014 by just 25 large retailers who recovered over $225 million from these thieves, according to the 27th Annual Retail Theft Survey conducted by loss prevention and inventory shrinkage control consulting firm Jack L. Hayes International. The participants were made up 25 large retail companies with 23,250 stores and over $700 billion in retail sales (2014).

“In 2014, the number of apprehensions and recovery dollars were up again for both shoplifters and dishonest employees. Shoplifting apprehensions rose 7.4%, while dishonest employee apprehensions rose 1.7%. The dollars recovered from apprehended shoplifters and dishonest employees also rose, 7.5% and 18.1% respectively,” said Mark R. Doyle, president of Jack L. Hayes International.

The increases, follow similar increases reported the previous three years.

Highlights from annual theft survey include:

• Apprehensions: 1,272,560 shoplifters and dishonest employees were apprehended in 2014, up 7.1% from 2013.

• Recovery dollars: Over $225 million was recovered from apprehended shoplifters and dishonest employees in 2014, up 10.4% from 2013.

• 1,192,194 shoplifters were apprehended in 2014, up 7.4% from 2013.

Here’s How Much Walmart Loses Every Year to Theft

Walmart is fighting back against “unknown shrinkage”

When you’re a company as big as Walmart, everything about you is huge, even your losses from shoplifting.

The retailing giant says that it loses about $3 billion every year from theft, or 1% of its $300 billion in revenue, Reuters reports.

Leading the effort to fight back against this so-called “shrinkage” is Greg Foran, head U.S. operations, who told reporters Thursday that cutting down on these loses was a key priority for the firm in coming months.

“One percent of $300 billion is quite a lot of money. If you can save 10 basis points of it – boy I’ll take it every day of the week and put it into lower prices for customers,” Foran said to Reuters.

6 Ways Small Businesses Can Effectively (and Cheaply) Prevent Shoplifting

Shoplifting remains a constant issue for American small businesses, leading to losses of over $10 billion each year. According to the Loss Prevention Research Council, 1 out of 11 customers is a habitual shoplifter (repeat offender!). Small businesses have slim profit margins, which means that “shrinkage” (reduced inventory to shoplifting and thefts) can really put immense pressure on their ability to stay afloat. Some of the fastest growing and most successful brands out there have recently employed innovative tactics to discourage shoplifting, largely harnessing the power of consumer psychology. Check out 6 of their most successful tactics, that any small business can easily, and cheaply, start using to discourage and prevent shoplifting!

1. Strategic Checkouts
Place your checkout registers near the front door to dramatically reduce the likelihood of a shoplifter. Most shoplifters prefer to enter the store and then make a quick exit, without passing by an employees. Having customers come in near your employees will also provide your staff with the opportunity to greet new customers, a big plus for customer service and yet another major deterrent of shoplifting. One of the most successful new techniques was introduced by Apple stores — make your registers mobile, on tablets or “phablets.” Have your employees roaming the store, and check-out people right where they encounter them. This tactic has already been adopted by many nationwide retailers as a quick and easy way to dramatically reduce their shrinkage.

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha Jewel Lok, Alpha Nano Gate, anti-theft tags, EAS Devices, employee background checks, Employee Theft, Georgia Alarms systems, Georgia shoplifting prevention, Georgia shoplifting systems, Retail Anti Theft Devices, retail security and monitoring, security devices, Shoplifting Prevention, shoplifting statistics

Surveillance And Shoplifting

June 4, 2015 by Staff Editor Leave a Comment

Many retailers already spend millions of dollars to defend themselves against cyber attacks, and millions more to defend themselves against shoplifting and employee theft. Security cameras are one of the many methods they use to prevent shoplifting, and in big retail stores a security guard is usually walking through the store, but relying in one method of security though is foolhardy, and eventually may prove to be more costly for the profits of your store.

Tips for enhancing the security of your surveillance systems

Nothing beats a security camera when it comes to keeping an eye on your home or your business. The newest surveillance technology can offer a greater range of vision and nearly endless recording durations, guaranteeing protection. Learning about security camera best practices can dissuade intruders from trespassing on your property or hacking your systems. Before buying a set of surveillance cameras, however, take a second to review the steps necessary for truly secure monitoring.

Password unprotected

Isn’t the whole point of a top-of-the-line security system that it’s for your eyes only? No one besides you, your family or a select group of coworkers should have access. Unfortunately, accidentally granting permission for anyone to peek through your cameras can be as easy as checking the Internet.

Is Petty Shoplifting Worth Hiring a Private Security Guard?

It’s obvious why a large store, full of hot-ticket items, needs round-the-clock, top-notch private security. But what about the local, corner store, whose average item’s price is $3.00, and its highest-priced item is $25? Wouldn’t the money spent on a private security guard offset any petty shoplifting?

This question is certainly worth asking, because after all, you would hire a private security guard because it would ultimately protect your assets, not increase your expenses without cost-benefit. Let’s look at the issues at hand, because hiring a private security guard isn’t just about keeping away petty thieves. What else is it about?

1) Calculating accurately. Most retail stores calculate between 10-20% of their budget for shoplifting. That means up to 1/5 of the budget is dedicated toward theft alone! Make sure that the cost of a private security guard is weighed against the shoplifting budget . Even when strictly looking at the bottom line, your calculations could show that a private security guard reduces the need for the so-called “theft budget”.

Alleged shoplifter opens store with security cameras to stop shoplifters

WATCH ABOVE: Police bust an alleged shoplifting ring preying on high end retailers in the GTA. Catherine McDonald reports.

TORONTO – York Regional Police have announced Tuesday the seizure of $1 million worth of stolen clothing after dismantling a Greater Toronto Area shoplifting ring.

Police say the investigation began in October 28, 2014 following a clothing store theft at Markville Mall in Markham.

Security video obtained at the scene helped police identify several suspects linked to similar crimes in the area.

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha High Theft Solutions, Alpha Jewel Lok, Alpha Nano Gate, Alpha Security, Alpha Spider Wrap, anti-theft tags, employee background checks, Employee Theft, Georgia Alarms systems, Georgia shoplifting prevention, Georgia shoplifting systems, Retail Anti Theft Devices, Shoplifting Prevention, surveillance

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.

Filed Under: Shoplifting Prevention Tagged With: Alpha 2 Alarm, Alpha Nano Gate, Alpha Security, Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, Georgia Alarms systems, Georgia shoplifting prevention, Georgia shoplifting systems, Prevent Shoplifting, retail security and monitoring, security devices

Take a Bite out of Shoplifting – Literally

May 29, 2015 by Staff Editor Leave a Comment

Shoplifters are great. Well, not great for business, but great for laughs sometimes. Most of the times, shoplifting incidents are pretty serious business. You’re confronting someone who has just committed a crime. You don’t know their state of mind and you definitely don’t know what they are capable of. I’ve personally been pepper sprayed by a shoplifter as they tried to escape, along with seeing countless managers suffer the same fate. Often suspects immediately want to become physical and more simply will flee the store. Every now and then karma and a little luck is on your side.

I was training a new LP agent last summer in a very active market. It was day four of our training and she had already thrown a half dozen folks in jail. So far, no problems, this particular agent was an attractive young female who didn’t take lip from ANYONE! It was amazing how many shoplifters hit on her… but we’ll save those stories for another time. The clock was ticking away and it was just about time to call it a night when one of our frequent flyers entered the store. I had busted this guy on no less than three previous thefts and he was definitely a runner. I had my new agent begin observation while I contacted the police. At the very least, I was going to charge him with trespassing.

About 15 minutes goes by and like always, the shoplifter starts loading his pants up with electronics. About this time, the police were arriving, so I went outside to inform them of the situation and wait for the thief and my agent to exit the store. Well, she didn’t disappoint. Our thief exits, but completely ignores the agent and takes off running. The next thing I know he’s gone. He’s hiding around the vehicles in the parking lot, but we can’t seem to find him. The officer gets on his loudspeaker and announces that he’s going to let the K-9 unit loose if he doesn’t turn himself in. No answer.

Standing a full 3.5 feet tall and weighing in at about 120 pounds, K-9 Officer Scout is ready for action. This is a game for the pooch and I can tell he’s ready to play. Within seconds of jumping out of the patrol car, he and his handler are on the scent. Like a scene from a movie, out of nowhere, the shoplifter emerges. Only… he doesn’t surrender. In true idiot fashion, he starts sprinting across the parking lot. I don’t care how fast you think you are; you will never outrun a German shepherd whose sole purpose in life is to take you down. And take him down he did. When the handler finally reached the scene the shoplifter had a knife he was trying to stab the K-9 officer with. Not only did this shoplifter go to jail with some pretty serious bite wounds, he also got to feel what 100,000 volts of electricity from a Taser felt like.

Filed Under: Featured Tagged With: Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, EAS Devices, Employee Theft, Georgia Alarms systems, Georgia shoplifting prevention, Georgia shoplifting systems, internal Audit, Loss Prevention Seminar, Loss Prevention Training, Prevent Shoplifting, prevent shrinkage, Retail Anti Theft Devices, shoplifting violence, surveillance

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?”

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, Georgia Alarms systems, loss prevention, Loss Prevention Workshop, Retail Anti Theft Devices, security devices, surveillance

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.

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, Employee Theft, Georgia Alarms systems, Georgia shoplifting prevention, Georgia shoplifting systems, Loss Prevention Seminar, Retail Anti Theft Devices, retail security and monitoring

Employee Theft and How to Prevent it

May 7, 2015 by Staff Editor Leave a Comment

Now, research has shown the retail loses more from employee theft every year without knowing how to stop it, than at any other time. Employee theft, shoplifting, credit card fraud, and many other fraudulent practices are plaguing the retail industry without a clear solution to the problem. Local police in many communities across the US are implementing programs to help reduce criminal activities around their communities. To read more about this topic follow the links below.

4 Ways to Protect Your Business Against Employee Fraud and Theft

Q: Which internal accounting controls can help prevent fraud?

A: This is a vast topic covered by countless books and consultants, so let’s narrow it down to employee fraud and theft. Aside from the obvious—conducting regular inventory checks and book audits, reconciling cash daily, and personally reviewing financial statements each month—there are several actions you can take to protect yourself and your business.

1. Establish a code of conduct.

Did you know that Walmart employees are not allowed to accept a bottle of water or cup of coffee from a vendor at a meeting without paying for it? That’s what I mean by a code of conduct. It’s a statement that you will not tolerate unethical or illegal behavior toward anyone—customers, suppliers, employees or the company itself.

While you may not be as strict as Walmart, you should write and post a code of conduct that clearly spells out the rules for employees and the repercussions for not following them. Give the code to everyone upon hire, and periodically thereafter, and require written acknowledgement that they have read, understand and agree to comply with it.

Police: Employee admits to stealing $14,500 from Kohl’s

A Sun Prairie woman admitted to stealing $14,500 from the Madison department store at which she worked, according to a release from Madison police.

Police said Rebecca A. Onstad, 27, said she stole merchandise and faked returns for store credit to support her family during some tough times in the past year.

Onstad worked at Kohl’s at 2602 East Springs Drive.

She was arrested Monday on suspicion of felony theft.

What Smaller Retailers can Learn About Loss Prevention

One of the biggest challenges the UK retail industry currently has to face is shrinkage. While sales are steadily growing – they increased by 3.9 per cent year-on-year in January, according to the British Retail Consortium (BRC) – stores are still facing losses from the old enemy of theft.

A recent infographic commissioned by SECOM Plc shows shoplifting and more serious retail theft is becoming more and more of a problem. While the number of incidents is falling, their cost to businesses is rising as more valuable items are targeted. In 2014, the cost of crime to the UK retail sector was £603 million, a rise of 18 per cent compared to the year before.

However, this figure does not take into account a number of other factors that have a much greater impact on smaller retailers. Each theft is not equal; stealing an item from one store can cause significant issues, while another might be able to absorb the loss easily.

Many small retailers only employ a handful of people and operate relatively informally, meaning they don’t have many policies in place regarding things like pricing, inventory and employee conduct. It may seem like these things are fairly low priority, but in actual fact having policies like these in place can significantly reduce shrinkage.

Filed Under: Shoplifting Prevention Tagged With: Anti-shoplifting training, anti-theft devices, anti-theft tags, anti-thefts devices, employee background checks, Employee Theft, Georgia Alarms systems, Georgia shoplifting prevention, Georgia shoplifting systems, Prevent Shoplifting, Retail Anti Theft Devices, security devices

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.